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Long BTC at Selling Climax

アップデート済

Previously, I’ve demonstrated stepping-stone descending horizontal Wyckoff re-distribution trading ranges for BTC. Interestingly, the last 3 transitions from Wyckoff re-distribution Phase E to Phase A were similar. In all 3 cases, we observed a climatic level of volume. In all 3 cases, we observed sell bars with a large spread. The percent change in price for these Phase E/Phase A transitions were -26.84%, -21.28%, and -24.98% in Dec 2021, Jan 2022, and May 2022, respectively. In all 3 cases, we observed a selling climax (SC), which serves the purpose of stopping the down trend, followed by an automatic rally (ARa). I expect that we will observe an ARa to the first area of important resistance, which is the open of the May 9 sell bar ($33,945).

I have opened a long position at $30,476 and I have a take profit target of $33,945, which is an 11.38% profit.

Significant bars, which help define important areas of support and resistance, are given by the blue shading. The blue arrows point to volume spikes.

Wyckoff abbreviations: automatic rally (ARa), selling climax (SC), secondary test (ST), upthrust (UT), failed upthrust (FUT), last point of supply (LPSY), shakeout (SO), sign of weakness (SOW), Phase A (Ph A), Phase B (Ph B), Phase C (Ph C), Phase D (Ph D), Phase E (Ph E).

This is not financial advice. I am not your financial advisor. This is my opinion.

ノート

In this chart, I’ve superimposed a Fixed Range Volume Profile Indicator on the Bad Ass Bollinger Bands (BA BBs) to identify a second take profit target ($36,422). Also shown is the point of control, which is $38,545 at the moment. The Phoenix Ascending (PA) indicator is given in the bottom panel. Projected values for the PA indicator elements are given by the dotted lines.