Bitcoin, and crypto in general, can often be very volatile, and finding a simple bitcoin setup that always works can be difficult.
But what if you can learn it by seeing it in action in a live trade?
In today’s trading setup on TradingView, we make a simple price action analysis combining three among our best crypto indicators:
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- the Breakout Pivotal Bars
- the Levels and Zones
- the Sentiment Index
By doing so, we are able to identify a very clear and simple trade setup on bitcoin.
Even if cryptocurrencies might be more affected by volatility than stocks or forex, we are able to play this trading opportunity very safely because the price action breaks down two major resistance levels, which means that the price is pushed to the downside and a very strong downtrend is very likely.
Trade setup – 11 Sep 2017
The price is forming a consolidation that looks very bearish and we can probably get a nice short opportunity soon.
Trade update – 13 Sep 2017
We got the setup that we were looking for and in particular:
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- The price broke down our consolidation
- The breakdown candle is red
- The Sentiment Index breaks down its trendline as well
All we need to do is to set the target, by projecting the previous impulse to the downside, and the stop loss, that’s just slightly higher than the breakdown candle since we are well protected by two major resistance levels which should put a very strong downward pressure on the price.
Trade closed – 14 Sep 2017
We closed the trade with a profit and without any issue at all since the price basically went straight down.
In conclusion, starting from our simple bitcoin setup we were able to close another winning trade.
This gives us yet another confirmation that we are using probably the best indicators for crypto trading.
Moreover, the trading strategy that we exploited, can easily be named among the most consistently profitable crypto trading strategies.
But we’d like to hear from you!
What do you think about our simple bitcoin setup?
Let us know by leaving your comment on the video above.
