This article is just to give example how the structural price action technique is applied in trading BTC/USD. To open a trade, it is necessary to have a confluence between the appropriate structure, trend direction, level, signal, risk-reward, and proper time frame. The following is an example of how to trade current BTC/USD as follows:
1) Observing chart on time frames D, 4H, and 1H and not further lower because there are noisy.
2) Following the general trend of BTC, which is bearish, so only open Short (Sell/Put) Entry.
3) Placing blind short entries at Resistance level 44143 with Stop Loss (SL) at 46541, and Take Profit (TP) 34653. This resistance has been tested 4 times so it is a sign for Blind Entries, thus there is no need to wait for candlestick signals. In this case, entry can be done with Sell Limit Orders at the Resistance level.
4) Expected Risk-Reward Ratio (RR) = 4 (very good). RR is calculated from the ratio between TP (Opportunity) and SL (Risk) = 4 : 1.
5) There is sufficient confluence between the bearish trend, resistance level, and blind entry signal as a complete basis to order entry.
Please look at the following Tradingview BTC/USD chart on D, H4, and H1 timeframes according to the steps above:
BTC/USD Day Time Frame
BTC/USD H4 Time Frame
BTC/USD H1 Time Frame
Another question is, can the structural price action method be applied to the time frames below H1, the answer is yes it can be applied even at binary options or ticks speeds, but it is not so recommended because of the speed of change, so it requires a lot of practice or with help of automated EA.
Disclaimer: This article is based on my research and personal opinion. This is not an order or an invitation to do. Trading in the cryptocurrency market provides both benefits and risks. Every trading decision is the responsibility of the individual who made the decision. Please trade according to your personal risk profile.
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