Bitcoin is trading between supportresistance
These upper and lower lines can assist you in projecting where those opportunities will be ahead of time. Every stock or Crypto currency has there own internal critical mass and range that forces it to pause at certain levels each day.
Like a stretched out rubber band that can only stretch to a certain point without breaking, depending on its size and thickness, so to does the underlying instrument your trading. If you know ahead of time where those prices will be, then you can anticipate the bounce as you watch the price action at those areas. You should pre-draw these lines on your charting software, before you trade.
Look at the chart above as a guide. Use them along with you other TA tools, then ask yourself the following:. Think about when you should begin plotting lines in between the major price lines by dividing by 2 until you trap the price movements, this will allow you to trade in and out as many times as possible before others realize a trend has formed.
Getting in early on a bounce removes some of the risk and allows you to profit sooner by getting out before it hits its next price line.
Try it out by first 'paper trading' this technique until you are comfortable and confident in using it. I will continue to post these figures as often as possible. If there is a big high flying stock you want to test it on as well, just shoot me back the symbol and I will get you the numbers on that as well. Remember just keep subtracting the same Lower line number from the last number like this: Also divide the Upper and Lower by 2 if needed so that I would be looking for a drop towards The article is written for informative purposes only and it is not financial advice.
The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.
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