Bitcoin Price Watch; Trading The Range 2017-05-11

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So that is another day done in our bitcoin price trading efforts, and yet again, it’s been an interesting one. We managed to get into a short position earlier on as signaled by our predefined range, with price closing below support to signal entry. We subsequently ran through to a quick turnaround profit, and, having picked up a few dollars off the position, sat back and let price mature throughout the session. As it turns out, this maturation has resulted in price returning to trade within the range we initially highlighted, and this gives us a relatively simple approach for this evening’s session.

Specifically, we are going to leave this morning’s range unchanged and enter towards a similar set of targets — if and when price signals initiation.

So, with this noted, let’s reiterate the levels in focus, and try to set up some fresh targets (albeit slightly altered from this morning) to accommodate the action we saw today.

As ever, take a quick look at the chart below before we get started to get an idea of what is on, and where we are looking to get in and out of the markets according to the rules of our intraday strategy. It is a five-minute candlestick chart and it has our key range overlaid in green.

As the chart shows, the range we are looking at for this evening’s session is defined by support to the downside at 1851 and resistance to the upside at 1875. There is probably just enough room to go at price with an intrarange approach tonight, so we’ll be in long on a bounce from support and short on a correction from resistance. As ever, stops just the other side of the entry will define risk.

Looking at things from a breakout perspective, if we see a close above resistance, we will enter long towards 1885. If, on the other hand, price breaks below support, we will look for a close below this level to get us in towards an immediate downside target of 1841. Again we need stops on these positions, and just a few dollars either side of the respective entries does the trick nicely.

Let’s see how things play out.

Charts courtesy of Trading View.