Our BTC/USD trade example in video 7 of Advanced Charting Skills for Trading stopped out around the $11,891 level to limit risk. However, our charting set-up remains somewhat intact as price approaches our "base" resistance zone. This area is defined by indicators of supply north of $13,000 near the 30 and 50-day moving averages. Further, the MACD momentum indicator is still negative, albeit improving. The Stochastic indicator supported the recent oversold bounce, but remember we need confirmation from momentum and price. Bitcoin is always difficult to follow and trade because it is so active, but trend-following rules enforce discipline. When you are stopped out, it provides a moment to limit risk and wait for confirmation in either direction. Never chase price, because once price confirms upside or downside follow-through, you will remain in that trend position to allow winning trades to work, and potentially offset earlier losses with a 2:1 or 3:1 reward-to-risk ratio. Below is an update of the Daily price chart we used in the BTC/USD Cryptocurrency Trade Example. Lastly, notice the possible bullish flag development which connects descending lower highs and lower lows - typical of a correction in an uptrend.
Comment below with thoughts, questions. Share your chart set-up on different time frames!
Full screen chart here