Hey everyone!
One of the biggest ways to increase your risk exposure is to enter a market just a bit too early and catch that last (much needed) sweep of weak hands before finally moving up!
Consolidation breaks provide great Risk-Reward-Ratio, with an impulsive break sometimes declining a second chance with a retest of what was previous resistance now turned into support and we are left with our hands empty. Well, that's not a great deal..
What we should look at is the general price action: generally, we want to look at symmetrical and ascending triangles before these long consolidation periods are broken.
Then look at them more carefully: when is the main volume coming from? Are the buy legs steeper and more impulsive than the sell legs?
Let's take a look at the beautiful chart above: look at those huge green candles - that's buyer interest right there. You will not see these type of volume candles in a market where sellers are in control.
Also note that the top part of the symmetrical triangle is being tested and a close on a high timeframe could mean that we are ready to move further up.
Hope you are able to spot this structure next time you look at a chart!
Take care,
Vlad The Crypto Trader
One of the biggest ways to increase your risk exposure is to enter a market just a bit too early and catch that last (much needed) sweep of weak hands before finally moving up!
Consolidation breaks provide great Risk-Reward-Ratio, with an impulsive break sometimes declining a second chance with a retest of what was previous resistance now turned into support and we are left with our hands empty. Well, that's not a great deal..
What we should look at is the general price action: generally, we want to look at symmetrical and ascending triangles before these long consolidation periods are broken.
Then look at them more carefully: when is the main volume coming from? Are the buy legs steeper and more impulsive than the sell legs?
Let's take a look at the beautiful chart above: look at those huge green candles - that's buyer interest right there. You will not see these type of volume candles in a market where sellers are in control.
Also note that the top part of the symmetrical triangle is being tested and a close on a high timeframe could mean that we are ready to move further up.
Hope you are able to spot this structure next time you look at a chart!
Take care,
Vlad The Crypto Trader