retroceso
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$BTC #retroceso
Bluechip
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When market pullback, what to do?
A pullback is a temporary retracement in the price of an asset within its existing trend. It's a brief moment where the price moves against the dominant trend before resuming its original direction. This is different from a reversal, which is a more profound and lasting change in the direction of the price. Traders view pullbacks as opportunities to join a trend at a more favorable price.
Technically, pullbacks look something like that:
Four effective tools for spotting pullbacks:
In the chart below, you can see the difference between pullbacks and reversals:
Fibonacci Retracement Levels: These levels (38.2%, 50%, and 61.8%) can act as zones where the price might pause or bounce back, signaling a continuation of the previous trend.
Parabolic SAR: This tool is represented by dots on a chart. If the dots remain on the same side of the price during a pullback, it can indicate that the pullback is temporary.
Trend Lines: A trend line connects the highs or lows of a trend. The price might deviate from this line during a pullback but will not break through it significantly.
Moving Averages: These are used to smooth out price action and can act as dynamic support or resistance levels. A deviation from a moving average without a decisive break can signal a pullback.
Trading strategy:
Determine the prevailing trend: Identify if the price is in an uptrend (forming higher highs and higher lows) or a downtrend.Wait for a pullback to a Fibonacci level: Draw Fibonacci levels and wait for the price to pull back to one of the key levels, such as 61.8%.Use Parabolic SAR for confluence: Use the Parabolic SAR to confirm the entry point.Manage risk: Place a stop loss below the last swing low and set a profit target at the swing high of the move.
Finally, now that we have a high probability setup and our stop loss is in place, setting the target profit is relatively easier. All we have to do is to set our target profit to the swing high of the move, as shown in the chart above.
pullback trading strategy is a method for traders to identify optimal entry points in an existing market trend. This strategy allows traders to take advantage of temporary price retracements to align their entries with the prevailing trend, aiming for potential gains
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#MarketPullback
Technically, pullbacks look something like that:
Four effective tools for spotting pullbacks:
In the chart below, you can see the difference between pullbacks and reversals:
Fibonacci Retracement Levels: These levels (38.2%, 50%, and 61.8%) can act as zones where the price might pause or bounce back, signaling a continuation of the previous trend.
Parabolic SAR: This tool is represented by dots on a chart. If the dots remain on the same side of the price during a pullback, it can indicate that the pullback is temporary.
Trend Lines: A trend line connects the highs or lows of a trend. The price might deviate from this line during a pullback but will not break through it significantly.
Moving Averages: These are used to smooth out price action and can act as dynamic support or resistance levels. A deviation from a moving average without a decisive break can signal a pullback.
Trading strategy:
Determine the prevailing trend: Identify if the price is in an uptrend (forming higher highs and higher lows) or a downtrend.Wait for a pullback to a Fibonacci level: Draw Fibonacci levels and wait for the price to pull back to one of the key levels, such as 61.8%.Use Parabolic SAR for confluence: Use the Parabolic SAR to confirm the entry point.Manage risk: Place a stop loss below the last swing low and set a profit target at the swing high of the move.
Finally, now that we have a high probability setup and our stop loss is in place, setting the target profit is relatively easier. All we have to do is to set our target profit to the swing high of the move, as shown in the chart above.
pullback trading strategy is a method for traders to identify optimal entry points in an existing market trend. This strategy allows traders to take advantage of temporary price retracements to align their entries with the prevailing trend, aiming for potential gains
📌 Follow @Bluechip for unfiltered crypto intelligence, feel free to bookmark & share.
#MarketPullback
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I see many people saying that the movement we had today is a #bulltrap that now we are going to 48000, because of the sales, because of the capital exit... because in China... 🙄 the same thing always happens 🙄....
No young man, the best thing that could happen is that the $BTC holds in the area above the EMA of 55, makes a range and that's it, for me it would be the best thing that could happen (see image 1), in fact it is what I would like to happen.
Although we remember that it is the weekend, there is normally a low volatility in the market, so the second scenario I have is; a retracement to the 50% fibo, to continue its upward path (image 2)...
The #mercado moves in waves, we must always remember that.
My point of view is clear, I expect a #retroceso to continue rising.
For those who are short-term, this is their chance to take partial profits, put a stop at the entry price, close positions if you need liquidity, this is what I would do if it were short-term and I had entered BTC around the 59,500 or 60,000 area.
It is worth remembering that as investors we have the responsibility to make informed decisions with our own analysis, today has been a very good day for crypto and for BTC.
No young man, the best thing that could happen is that the $BTC holds in the area above the EMA of 55, makes a range and that's it, for me it would be the best thing that could happen (see image 1), in fact it is what I would like to happen.
Although we remember that it is the weekend, there is normally a low volatility in the market, so the second scenario I have is; a retracement to the 50% fibo, to continue its upward path (image 2)...
The #mercado moves in waves, we must always remember that.
My point of view is clear, I expect a #retroceso to continue rising.
For those who are short-term, this is their chance to take partial profits, put a stop at the entry price, close positions if you need liquidity, this is what I would do if it were short-term and I had entered BTC around the 59,500 or 60,000 area.
It is worth remembering that as investors we have the responsibility to make informed decisions with our own analysis, today has been a very good day for crypto and for BTC.
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