- We follow up on the previous bitcoin technical analysis and trade idea (see video within that page)
- What happens if we see new information that may affect our trade? Well, while sticking to trade plans is important, so is finding a balance between that and agility, as we adjust to the market and price action. Even react to things that we did not see beforehand, but it is still not too late now
- In our case, we see the upcoming 20 EMA (20 bar exponential moving average) on the daily timeframe. The EMA20, or 20 EMA, is the total of an asset’s closing prices during a period divided by the number of observations. For example, a 20-day SMA is the total of the last 20 trading days’ closing prices divided by 20. EMA gives current prices more weight, whereas SMA gives all values equal weight. A shorter EMA weights the most recent price more than a longer EMA.
- Back to our trade and adjusting to new information, we show how to manage a profitable trade by adjusting a stop in order to break even within a worse case scenario, should BTCUSD turn against our short position, in this case. We do that by exiting one third of the position at a new take profit target, and stay in the short on the other two thirds. We show the principle of calculating the new stop price of the two thirds left trading
- In terms of the bitcoin technical analysis situatuon at this stage, Bitcoin is cooling off after faking out a breakout at the top of the presented channel, so the bears have gained control for the short term, at least
Bitcoin technical analysis, failed breakout, for now
- Watch the rest within the BTC technical analysis below
This article was written by ForexLive at www.forexlive.com.
