Introduction
At this time, the price of Bitcoin (BTC) is range bound and the daily trading price range is low.
- Resistance for BTC is in the range of 10,200 to 10,500. It has moved into this area three times.
- Support for BTC is in the range of 8,825 to 8,900. It has moved into this area three times.
- The 14-day average true range ATR(14) has continuously decreased since the middle of May 2020.
Swing trade parameters
Follow these steps to swing trade BTC from a failure to move above 10,500.
- Short BTC at the price you select
- Place a trailing stop equal to 2 ½ to 3 times the ATR(14)
- Exit the trade at support.
As an example,
- Short BTC at 10,500.
- Place a trailing stop equal to 700.
- Exit the trade at 8,900.
Earn $1600!
Follow these steps to swing trade BTC from a failure to move below 8,900.
- Buy BTC at the price you select
- Place a trailing stop equal to 2 ½ to 3 times the ATR(14)
- Exit the trade at resistance
As an example,
- Buy BTC at 8,900.
- Place a trailing stop equal to 700.
- Exit the trade at 10,500.
Earn $1600!
Conclusions
At this time, the price of Bitcoin (BTC) is range bound and the daily trading price range is low. After a failure to move about resistance or a failure to move below support, a swing trade can be profitable.
Note 1: BTC price charts from https://messari.io/chart
Note 2: This post is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.