BTC and ETH have started to form a short-term trading range.
For BTC:
Even if BTC breaks the descending trendline I’d not be considering trend following strategies until the trading range is broken (white lines).
Short-term trades, all in and all out with profits, would be my focus until then. Breakdown of the trend line or shorts from the top of the range or down from the midline if momentum is falling or there is a bearish divergence. Breakout of the trendline or longs from the bottom of the range or up from the midline if momentum is building or there is a bullish divergence.
For ETH:
Even if ETH breaks the descending trendline I’d not be considering trend following strategies until the trading range is broken (white lines).
Short-term trades, all in and all out with profits, would be my focus until then. Breakouts/breakdowns of the trend line likely won’t be available for a couple of days.
There’s a small no-trade zone to break up the trading range. I’d avoid opening positions there.
Shorts from the top of the range or the bottom of the No Trade Zone if momentum is falling or there is a bearish divergence. Longs from the bottom of the range or top of the No Trade zone if momentum is building or there is a bullish divergence.
Trend following and breakout strategies that would result in holding positions longer than just a few hours I’d be ok with taking once the price started closing and trading above/below the full trading range.
Nice. Thnx for this. It confirms what I’m doing—shorting BTC at resistance and scooping it back up at support ish.