We’ve had another pretty flat day in the bitcoin price, and so we are going to adapt our strategy to focus on intrarange, in an attempt to pick up a position based on action between support and resistance. Of course, we’ll keep our breakout strategy on the backburner, as a bit of volatility can come at any time, but from a charting perspective, our focus is going to be on the bounces and corrections, instead of the sustained directional movements.
So, with this in mind, let’s have a look at what we’re focusing on for this evening’s session. It’s a pretty standard Thursday – no real fundamental news to speak of, and some steady restricted movement on relatively low volume.
We’ve seen this change quickly in the past, however, as Friday kicks off in Asia and volume picks up ahead of the weekend offload. With this in mind, and in advance of any sort of volatility increase, lets move forward. The chart below highlights our range in focus, and gives a pretty good idea of where we are looking to get in and out on an intrarange entry signal. As usual, it’s a fifteen-minute candlestick with a twenty-four-hour scope.
So, as the chart shows, we are looking to 447.59 as in term support to the downside, and to the upside, 452.74 serves as our in term resistance for the evening. Our breakout strategy plays off failed breakouts, so using a long entry as an example, we would look for price to break support (or at least touch it), but not close below that level on this chart – a bounce, in other words. On this bounce, we’ll enter long towards resistance and place a stop loss just the other side of the entry.
Looking short, a corrective bounce (so the same as above, just the opposite way around) from resistance will signal a bearish position with a target of support. Target in the equivalent position.
Charts courtesy of SimpleFX
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