A quick overview of what BTCUSD is doing and a follow-up to a previously presented trade idea to short BTCUSD (for short to medium term traders)
Saturday 23/07/2022 | 4:28 p.m. GMT-0
07/23/2022 | 4:28 p.m. GMT-0
- We follow up on Bitcoin’s previous technical analysis and trade idea (see video on this page)
- What happens if we see new information that could affect our business? Well, while it’s important to stick to trading plans, it’s equally important to balance that with agility as we adapt to the market and changing prices. Even react to things we haven’t seen before, but it’s still not too late now
- In our case, we see the next 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 over a period divided by the number of observations. For example, a 20-day SMA is the total of the closing prices for the last 20 trading days divided by 20. The EMA gives more weight to current prices, while the SMA gives all values equal weight. A shorter EMA weights the most recent price more than a longer EMA.
- Returning to our trade and adjusting to the new information, we show how to run a profitable trade by adjusting a stop loss to break even in the worst case scenario, if BTCUSD reverses against our short position, in this case . To do this, we exit one third of the position at a new take profit target and stay short on the other two thirds. We show the principle of calculating the new stop price of the remaining two-thirds of trading
- As for bitcoin’s technical analysis situation at this point, bitcoin is cooling after simulating a breakout at the top of the channel shown, so the bears have taken control in the short term, at least.
- Watch the rest in the BTC technical analysis below
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