While the trade didn't quite go to plan, the price action is still worth talking about.
Click the links in the paragraph above to go back and view the full walkthrough of the setup, but here's yesterday's intraday chart quoted below.
As we were above higher time frame resistance (the grey box from the daily chart), we were looking to play from the short side.
We then zoomed into the hourly chart to find a short term area of support that when retested as resistance, could be used to short off (the blue box).
Now here's the hourly price action since:
While the trade didn't work out, look at the way that the intraday zone was retested as support and then how the top of the daily zone also held after the momentum move.
With Bitcoin currently in a bullish trend, selling against momentum at the first sign of resistance may not have been the smartest move.
But to be fair, you can see on the hourly char that the short term support turned resistance was retested twice before breaking on the third touch.
This could have given you ample opportunity to get out at break even and is something to consider depending on your risk tolerance.
But hey, this is trading ;)
In case you missed it, this is a setup that uses my simple forex support and resistance trading strategy.
If you're new to trading or don't quite understand my analysis, head on over and give my full trading guide a read, right here on LeoFinance.
Best of probabilities to you,
FOREX BROKR | LeoFinance Blog
Daily market analysis.
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