My last post I expected BTC to test the support at 200 EMA, then potentially make a run up at breaking the downward trend line. Price didn't exactly hit the 200 EMA but the area was still support, and price then made a run up to touch the downward trend line.
It's close but for me to jump in long I need to see the price break up through the downward trend line, the 12EMA (blue) to cross over 36EMA (Red) to the upside. Usual pattern I look for is a break-through, retrace, then it takes off. Of course you can have pure breakouts that don't do a clean retrace back. I've missed more than a few of those, then again I've also played into what I thought was a breakout and it was just a fake.
There are a lot more fancier systems and a ton more detailed analysis that can be done, but I like to keep it as simple as possible otherwise you can go crazy down rabbit holes looking for indicators or analysis that support a story you want to hear. Been there, done that and I found the market doesn't give a crap about your wishful thinking - you just have to watch what it actually does : )
So now I wait.
It's close but for me to jump in long I need to see the price break up through the downward trend line, the 12EMA (blue) to cross over 36EMA (Red) to the upside. Usual pattern I look for is a break-through, retrace, then it takes off. Of course you can have pure breakouts that don't do a clean retrace back. I've missed more than a few of those, then again I've also played into what I thought was a breakout and it was just a fake.
There are a lot more fancier systems and a ton more detailed analysis that can be done, but I like to keep it as simple as possible otherwise you can go crazy down rabbit holes looking for indicators or analysis that support a story you want to hear. Been there, done that and I found the market doesn't give a crap about your wishful thinking - you just have to watch what it actually does : )
So now I wait.