another way to use our reversal setup

Today I want to show you how to use our scalping system setups to time longer term reversals. 

There’s a pullback starting in Bitcoin right now so it’s a good time to look. (at the end of the mail I’ll remind you why betting against the strongest markets is a dumb idea)

Remember our scalping system setup rule

1) Touch of the upper bollinger

2) One or more higher closes without breaking the high of the bollinger touch bar

3) One or more lower closes without breaking the high of the bollinger touch bar

When setup is complete go short on break of the low of the setup candle.

In our system we use the 2 minute, 5 minute and 10 minute charts… but it’s equally applicable to higher timeframes like daily charts.

How can you use this for longer term swing trading?

I suggest you use daily, 3 day and weekly charts in place of 2 minute, 5 minute and 10 minute charts.

What does this mean?

Bitcoin is STILL in a bull market, but is likely starting a pullback to work off overbought momentum.

Likely a meaningful pullback starts here, meaningful in terms of TIME as well as price.

With the crypto market moving straight up since May it’s unrealistic to expect just a few days pullback.

So… what’s next for bitcoin?

Fundamental to our understanding of price action is the idea of easytime-hardtime.

Markets go through distinct phases. When a market has been making it EASY to make money for a while, it’s a stone cold certainty that the market will probably spend some time being choppy and hard to read.

So bitcoin is probably going to go sideways to down for at least a month.

But you STILL shouldn’t short it.

It’s a bull market, and we short bear markets not bull markets.

Thats all I got for today

Scott

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