BTC how to determine change of trend and its trading strategy.
Currently many on tradingview are bullish since price penetrated the 4H 200ema. Crossing the 4H 200ema is considered very important because it signals a change in the macro trend. However the most common mistake is to assume that the trend has changed just by crossing the 4H 200ema.
I will present two cases of price crossing the 4h 200ema but with different results. One case results in a pump not changing trend even after after crossing the 4H 200ema, and in the other case, the pump changed the trend .
The cases are the Xi pump on the 25th of October 2019 and the Trump pump on the 3rd of January 2020. Both of these cases are in themselves very special because they are highly inorganic in nature. Normally price should have continued dropping in both cases. Prior to the Xi pump a head and shoulders formed and broke out, price was heading to 6800 but changed direction mid course with a powerful $3000 pump. Such a powerful pump is highly unusual and unpredictable. Prior to the Trump pump a descending triangle broke down and price was heading to 6.5k but price vigorously pumped way before reaching that target.
The trading strategy notes on the chart are self explanatory, but they are the just the basics. There are more to this trading strategy. The complete strategy I learned from enTHUZed, a contributor here on Tradingview. He makes free trading bootcamp. Subscribe to him and follow him.
www.tradingview.com/u/enTHUZed/
I will present two cases of price crossing the 4h 200ema but with different results. One case results in a pump not changing trend even after after crossing the 4H 200ema, and in the other case, the pump changed the trend .
The cases are the Xi pump on the 25th of October 2019 and the Trump pump on the 3rd of January 2020. Both of these cases are in themselves very special because they are highly inorganic in nature. Normally price should have continued dropping in both cases. Prior to the Xi pump a head and shoulders formed and broke out, price was heading to 6800 but changed direction mid course with a powerful $3000 pump. Such a powerful pump is highly unusual and unpredictable. Prior to the Trump pump a descending triangle broke down and price was heading to 6.5k but price vigorously pumped way before reaching that target.
The trading strategy notes on the chart are self explanatory, but they are the just the basics. There are more to this trading strategy. The complete strategy I learned from enTHUZed, a contributor here on Tradingview. He makes free trading bootcamp. Subscribe to him and follow him.
www.tradingview.com/u/enTHUZed/
