Panic hits the market once again after a drop, but market structure remains intact.
Going to keep this short and sweet for you all. While we hold macro higher lows, Fibonacci and trend line support the structure is intact. I am day trading this and will be scalp trading from any bear flags that break to the downside, but medium term while we hold key supports I maintain longs.
The bearish argument here is that we have declining volume and bearish divergences while the price rises with a big SFP on the daily, but the counter argument I present is that we hold critical support levels and it is not until those are taken out I will close the majority of my longs, or we hit my upside targets.
We could have the possibility of an ending diagonal 5th - rising wedge if we do bounce from here, but that would coincide with my targets on Bitcoin.
Overall it is important to have a plan and stick to it. Don't be trading out of fear or a bias, trade the chart with a plan and stick with that until a major red flag shows or it is invalidated. I have taken a quick scan on sentiment this morning and everyone has turned extremely bearish and while not a top metric, something to keep in mind as the market loves a shake out.
In an uptrend a retracement is normal while market structure is maintained.
Daniel
Going to keep this short and sweet for you all. While we hold macro higher lows, Fibonacci and trend line support the structure is intact. I am day trading this and will be scalp trading from any bear flags that break to the downside, but medium term while we hold key supports I maintain longs.
The bearish argument here is that we have declining volume and bearish divergences while the price rises with a big SFP on the daily, but the counter argument I present is that we hold critical support levels and it is not until those are taken out I will close the majority of my longs, or we hit my upside targets.
We could have the possibility of an ending diagonal 5th - rising wedge if we do bounce from here, but that would coincide with my targets on Bitcoin.
Overall it is important to have a plan and stick to it. Don't be trading out of fear or a bias, trade the chart with a plan and stick with that until a major red flag shows or it is invalidated. I have taken a quick scan on sentiment this morning and everyone has turned extremely bearish and while not a top metric, something to keep in mind as the market loves a shake out.
In an uptrend a retracement is normal while market structure is maintained.
Daniel