Trade Recommendation: Bitcoin
With the price trading above the 3 Day Rolling Pivot Range (green/yellow dots) this is key support. We are in somewhat of a neutral zone with the price trading at the Daily Pivot Range low (blue dots) at the time of writing. Since we are below the Daily Pivot Range level then this is key resistance for today.
The Daily Pivot Moving Averages (red,yellow, white lines) are now pointed up, so this is a sign the market wants to turn bullish. You will want to look to buy on strength and enter a long position only if the market confirms the shift in bias to the long side. We will know this has happened if the price can rally through the Daily Pivot (mauve colored dots) and close above DPR high.
The action to take is to place a buy entry order if the price closes above the Daily Pivot Range high on a 60 minute chart. If triggered, place the stop loss and profit targets stated below.
Note: If triggered, look for the trade to play out over a period of 24-36 hours and if no significant move after 3 hours, exit the trade. Keep in mind the 3 hours is not a rule but a guideline as you will want to use discretion when managing the trade.
Entry Price: 10699
Stop Loss: 10240
Profit Targets: First profit target 11694. Second profit target 12140. Once first profit target is reached, bring stop loss to breakeven, then as the market makes new highs, trail a stop loss on remaining position 150 points behind to safeguard profits or until second profit target is hit.
Disclaimer: The writer owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.