The price has been moving in the borders of a triangle chart pattern. If the resistance zone formed by the local downtrend line and 10 750.00$ resistance level will be broken, we will get solid bullish signals based on the chart pattern and the bullish signal from Ichimoku. Now the price is trying to pass through the cloud and we can't say that the market is bullish in the 4H timeframe. But when we get a breakout, we will be able to talk about a new uptrend.
How to trade? It is obvious that the best trades are long trades in the crypto market. It means we have to search for possible buying opportunities and open trades in the direction of the main uptrend. Stop orders for such trades should be placed below the local swing low and the cloud. The profit targets will be based at 12 000.00$ and 12 500.00$ resistance levels. We will be able to use Tenkan and Kijun lines for trailing the profit as well.
Ichimoku is one of the best trend-following indicators. It creates trading magic and from time to time we have opportunities to catch the mega-profitable trades. Do you know how to use this tool?
Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Wouldn't it be better to break out of the Triangle with volume? If there is no interest (Volume) when the price breaks, the price won't be sustained. Bull trap.
DLavrov
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@rigosbox, because it is impossible to include all interesting indicators in one trading strategy. In this example, the trading strategy is based on Ichimoku indicator. Chart patterns, candlestick patterns as well as RSI and DMI support bullish and bearish setups.
I don't need Volume as an additional indicator.
and if we talk about volume as a part of a trading strategy, I think it makes sense only in Stock market.
tweakmyripple
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@rigosbox that’s not necessarily true. It’s one of those things that’s “said” a lot however there’s been many long uptrends sustained on pretty mediocre volume — in fact I recall eth a while back after the March crash I think it was like a 50 day rally or something.
tweakmyripple
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@rigosbox besides market makers will fake out sometimes with what looks like decent volume anyways and still bull trap ppl with it— not that I’m saying volume isn’t useful. Wasn’t trying to imply that.
rigosbox
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@tweakmyripple, Thank you. I forgot about the market makers.
Please follow up on Volume so I can better understand your analysis.
Thank you.