bitsofwealth

$BTC Update

Watching this candle range here on BTC - formed by the Sept 21 daily candle. We have now had 12 daily bars since then which have not breached the high or low of that daily candle. Nothing but inside bars.

What I am specifically watching for is to see which side of this candle range gets taken FIRST.

Usually (not all the time), the first move is the false move and then price would move to at least the 50% of the range, if not all the way across the range.

Its also worth noting that the previous week high (PWH) and previous day high (PDH) are pretty closely aligned with the top side of this candle range. A move to the top side would not only give us a potential sweep of the candle range, but also of PWH & PDH for a beautiful trap move - if we get it.

The key to playing these trap moves is to wait for it to play out. Wait for the trap. That means fading the pump and waiting for the failure back into the range. Sometimes we might get lucky with a retest once back in the range, but

We've been talking about a ZEC short for a couple of weeks now and its looking like we may finally be able to start building a short position this week.

Here is what I am looking for and how I intend to scale into this position. If you have not watched my pinned video on position sizing and leverage, I suggest you watch that as well before this trade sets up.

ZEC has finally broken the lows of this upper range and I am now actively looking for entries on a move back up into or near the range. Its hard to say exactly where price will move to, but we can identify zones of interest and strategically place orders in those zones.

In this example - you can see how I would scale into a position. If this was a $10,000 account and I was risking $1000 total in this trade - the first entry would be $100, 2nd entry would be $300 and the final entry $600. Your average short entry price would end up near the $1540 price range if all orders get filled. You can see how laddering in like this can really h