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Trading Bitcoin SELLING GOLD, SCALPING BITCOIN AND GAP TRADING SP500 Episode 4 all right Id like to welcome everybody back to another episode of trading Bitcoin Im gonna start things off today with DXY this is the US dollar currency index and I wanted to start this off to analyze how the US dollar is going so that we can further predict a sort of counter move with Bitcoin in the future so anyways with the X Y we do have the rising wedge still happening with the bearish divergence is also likely in play now this rising wedge with the bearish divergence does show that we should be retracing downwards towards the support however as you can see it challenged the resistance line one more time and as I stated you know in last weeks episodes weve been challenging this resistance for quite some time so at some point it will break so I am sort of more leaning towards this actually breaking upwards and having a running wedge at which point if we do do that then the target should be somewhere around the 101 point 5 area so possibly a rise of the breakout point up to here so about a 2 rise on DXY now I havent entered any sort of trade on DXY yet because I am still waiting for that confirmation but I do want to keep this in mind for for 14 future trade and also for a correlation with Bitcoin because if the US dollar currency index goes up then Bitcoin should be going down and and viceversa so that is the US dollar currency index Im going to go ahead and swap over to Bitcoin just so that we can see the correlation of one in the other all right here we have Bitcoin paired against the US dollar tether via by Nance as it is one of the most leading exchanges when it comes to volume now for Bitcoin and if you can remember from last week we were trading this this descending triangle pattern and while I predicted that it was gonna break new lows and then basically bounce back upwards which was absolutely correct however unfortunately I was it did not hit my target my target was a little bit down here towards the 7600 area for my take profit and because I wasnt around to quickly close my position or put in some sort of a trailing stop I did rebound up a little bit too quickly I got stopped out a little bit below my entry point which was basically just enough profits to cover the the trade fees as well as maybe you know get a breakfast in a cup of coffee or something like that but uh but it is what it is a gain is gain and the deep route the price rebounded upwards fairly nicely now I am still looking for a short position this is just basically consolidation chop just because we had such a volatile drop downwards but I am looking for another short position I think that maybe we can we can see a little bit of a relief bounce up here I am 1x short up in this upper range area but Im not in any sort a Im not in any sort of large position or anything of that nature what I am looking forward to enter is hopefully a nice little rebounds up here and up it up in this this higher range of liquidity is where Ill be looking to actually enter into more more leverage on my short position until we get up to this higher range Im gonna look really looking to enter into that much now for for bearishness I do think that we are going to see some more blood trip some more downside as we do see a bearish divergence from here to here so theres the buysell volume indicator and as you can see the peak of this one and the peak of this one definitely shows a very clear bearish divergence so to retrace downward thats why I reentered back into a 1x short I am looking to get into hopefully a 3x short if it does come back upwards but if not then Ill just play the waiting game and just look for a safer entry and hopefully a nice pattern to play but for right now Im just playing it very very safe because we are seeing a lot of a lot of volatility lately so if you look at the 4hour were also right up against the Ichi moku resisting resistance cloud so the HTML code resistance cloud is all here Im looking for this to sort of bounce up just a little bit further and once we reach the cloud right up in this areas when I look when I add another one acts sort of say onto my position and if we break up words to that then Ill be looking for some sort of a rising wedge pattern its something like that a rising wedge pattern to basically enter another another part of my position right up here so that way Im basically averaging up either either at this this blue square this blue liquidity level or above it so that I can average my position not that way when it does you know confirm the the rising wedge Ill be able to take profits a little bit down here or keep it open and just set a stop at my entry and then sort of let the winner run so thats my play for Bitcoin right now for the next few days possibly the remainder of the week and we will hop on over to go to see whats going on over there all right and here we have gold so if you guys remember from last week I pointed out this fairly obvious Head and Shoulders pattern that was at play it did confirm at the start of the week you know the neckline was broken it came down and just today I had the throwback upwards to the neckline level so as you can see right here it dropped down and it pumped up upwards and now its getting rejected so this is a throwback so I am actually in a short right now just waiting to see if this confirms the had an Shoulders pattern which it does look fairly fairly healthy to continue to do now the the tick profit is obviously amongst multiple levels but the the end target of this is actually down at around 1400 1415 which is down here is about a 4 drop rate that is the the top of the head down to the neckline and that is what were looking for for the target of this of this traditional pattern move I have a very large portion of my take profit us around this level right here just because of the previous consolidation point I feel like I could drop down a bit you know bounce upwards go sideways a bit maybe I could play those swings throughout the week and then you know let the rest of the winner run down towards the 4 area and just put a stop on it but I am looking to take profit down here around 14 43 1445 somewhere around that level and what Im looking for on this play is either just consolidated movement up at this point or it could drop all the way down towards this lower level which if you look at the weekly is about the the level of the ascending triangle consolidation that weve had going on for multiple years now so and one thing to remember is that gold is is is and they basically confirm the bull market in my opinion it is very strong we could be going down towards this this the support angle right here to support trend line going up but if not then just some sideways consolidation here before further climb upwards however we are pretty far away from the weekly each McLeod so this is a nice healthy and expected retracement downwards possibly down towards the oneweek kijoon line which is the red line down here at at around 14 11 and that would fit nicely with the 14 15 the target of the traditional Head Shoulders so that is the play for gold I am I am short for now Im gonna let the winner run and just just leave it be and see how how it continues to play out I need to finish things off we have f SP x which is the SP 500 index so now if you recall from last week we we were looking at this gap right here to be closed which you know it took it took a few days but I finally did it close so now that weve closed the gap what is there left to look for are we gonna continue going south are we gonna you know consolidate sideways and go upwards my personal opinion I think were gonna continue to go south just because we have to to open windows sort of say to more gaps to fill right down here at this level in this level not only that but the MACD as you can see has a lot of deviation from the from the two median points so theres definitely a lot of salt pressure going on it doesnt look like theres a lot of buying going on we are inside of the for our eg Mogu support cloud however that just could slow some things down before we continue going sideways I am looking for an entry point or at least a take profit from my short around at this at this trendline that could possibly create a sort of ascending triangle but for right now it does look like a nasty double top with some gaps open coming downwards and a lot of cell volume going on theres not much bullish indicators to that that are showing right now mine might my bet would be that we come down to to close at least one of these gaps and look for a trendline to find some further support for right now it looks like everyones just sort of panicking out and not really looking to enter the market not only that but we also do have a head and shoulders right here a pretty ugly one I would say but a head and shoulders nonetheless so we have the left shoulder right here the head and then the right shoulder right there so this is confirmed this head and shoulders with the local double top as well within the head of the sudden shoulders so that are all of these all of these patterns are just pretty bearish so do I think that were in in you know in a bear market or stock markets gonna crash nothing like that however it does look like were gonna continue to consolidate and go sideways within this large area then theres large level that weve sort of been bouncing along for the past few a few months now but but I do think that we will continue to retrace further and with that I will keep my short open and Ill just place a stop a little bit below take profits ensure that it covers any fees that I might having been incurring while the position is open alright guys thats it for this episode of trading Bitcoin thanks for tuning in if you have any questions in regards to the technical analysis that I showed technical analysis in general Bitcoin or anything just comment down section below or hit me up on my Twitter also dont forget to Like and subscribe thanks for tuning in

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