I have used your idea the idea about the level of 0.705 and analysed two corrections of the lows of this year.
HerSerenity
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Ok so I'll close my long I just opened at OTE $265 at 210, thank you
IvanLabrie
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Or resumption of the downtrend.
See weekly and daily charts.
Johnnyboyflow
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Yeah, I knew this was coming down but wow, that was quick.
mozalin.cranz
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Why did you use 0.705 retracement instead of 0.618 retracement for the corrective reversal? Why is that better?
MagnusTradingGroup
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it's based on a concept called OTE. Optimal Trade Entry. It assumes that big players (a.k.a. whales) are not interested in taking profits until this OTE level is reached. It's the zone between the .786 and .618 level. the midlevel of .705 is often pretty close to where a bounce happens so that's why I'm using it.
there is more to this concept. If you are interested check out this website and watch the video trading lessons :) cheerz
theinnercircletrader.com/Tutorials.htm
MagnusTradingGroup
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and btw you see that the .705 level has significance because it's right at the apex of the pennant :D
BTC_Daily.Pips
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nice, was just thinking maybe 220 would be tougher to break, was decent resistence.
MagnusTradingGroup
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that's why 220 is within the take green take profit zone :)
BTC_Daily.Pips
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ok, thanks, 220 is also my target, hopefully will hit it, without any stupid fomo :D