BTCUSD Possible Bearish Scenario (Risk to Reward Ratio of 4:1)

Technical: For the past few days, we've been working on a larger degree B wave. Which can be broken down to ABC as shown on the chart. The fractals of the ABC are also very apparent (3-3-5). Now looking at this Elliott Structure, a correction to the upside is warranted. So we wait for a setup that provides us the best Risk to Reward ratio. The Wave 4 correction should be in the range of 6300-6350. A scaled order with an Ascending order (Higher the price, higher the volume) is the best course of action. I believe this should be followed by a drop to 6180 or more. On the flip side we have our invalidation line, a stop slightly above it would protect us in the unlikely scenario.

Points to take note of:

• Green Support Line: Price stopped its descent at 6120 a week ago. We wondered what was the significance of this level other than price levels of support. A line can be connected to the valley of July 2017 and 14th August 2018. This line implies that it won't be broken just yet. A second retest might just do the trick. This reinforces our idea for a small upside correction.
  
• RSI (Oscillators): Are all in oversold territories all the way to 2h chart. These indicators need to cool off which should help us get to our short range.
  
• Scaled Orders: Many have no idea what a scaled order is. Well let me educate you folks. Let us assume this same trade and take the position size to be of 10 bitcoins. In that case, the orders shall be in the following order:
  Size: 1.957983 6350.0
  Size: 1.745098 6344.4
  Size: 1.532213 6338.9
  Size: 1.319328 6333.3
  Size: 1.106443 6327.8
  Size: 0.893557 6322.2
  Size: 0.680672 6316.7
  Size: 0.467787 6311.1
  Size: 0.254902 6305.6
  Size: 0.042017 6300.0
  
  There's a chance that many of these orders will not get filled so if one wishes to play it aggressively then they may enter a market short with the remaining amount once the low of 6220 is lost.
  

Godspeed
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I'm not your Financial Advisor and this is not to be construed as Financial Advice but I can be your Legal Advisor if you can afford me.

Dagangan aktif:

Orders starting to get filled

Komen:

Watch these two levels

Komen:

Perfection. Lets get ready for the drop.

Dagangan ditutup: sasaran tercapai