BTC
As can be seen above, Bitcoin looks set to breakthrough the $60,000 level as the price action had attacked this level on two previous occasions and failed to breakout (soaking up many sell orders).
This time around, it seems that the buying momentum is strong enough for the breakthrough to occur as the price action is being supported by a thick grey (bullish) Kumo Cloud, and there is a clear upward diagonal trendline.
As a result, I have decided to re-enter my TONUSDT long trade, after exiting the same position yesterday, because the price direction of BTC was uncertain, and TON showed a strong bias of rolling over to the downside below my original entry level.
Learning Point
- The willingness to sustain many small losses when making entries in order to ensure that my trading capital is not exposed to any unnecessary risk.
- The power and usefulness of applying Rule 1 from Phantom of the Pits: assume your trade is wrong until the price action confirms that you are correct. So all positions must be removed or reduced until the market proves we are correct (lagging span moves in the right direction).
As shown below, BTC broke through the $60,000 level as anticipated with the lagging span now free and clear on the 4 hour timeframe:
Next Action
- Continue to monitor the price action of BTC and TONUSDT every 4 hours or so.
- Create a book review for the Phantom of the Pits as soon as possible.
