Feb 2nd 2019, Crypto Chartbook

Nobody knows the future – but …

we do know the past! As much as every moment is unique and we are continuously expanding towards an unforeseeable future, human behavior repeats itself to a certain extent. It is this behavior harnessed in technical analysis that supports our decision making process and allows for risk control.

In last weeks crypto chart-book we warned for risk being on the downside as much as we had short setups:

BTCUSDT hourly chart as of January 26th, 2019

BTCUSDT hourly chart as of January 26th, 2019

Only an hour later after we posted our chart-book, we got the first scenario proving our hypothesis with a  breakout to the upside:

BTCUSDT hourly chart as of February 2nd, 2019

BTCUSDT hourly chart as of February 2nd, 2019

Within a day a second setup of a failed breakout to the downside (see red box with a hundred percent retracement), illustrates these risks again:

BTCUSDT hourly volatility chart as of February 2nd, 2019

BTCUSDT hourly volatility chart as of February 2nd, 2019

Consistent returns are provided if you:

  • stay out of harms way
  • identify low risk opportunities
  • be disciplined with your way of participating in the markets

This being said, the daily chart shows last weeks predictions to be true:

BTCUSDT daily chart as of February 2nd, 2019

BTCUSDT daily chart as of February 2nd, 2019

As long as we stay in the upper bounds of the down sloping channel (white lines), risk will continue to be to the downside. The market is still going through its lager time frame sideways bottom building period for now.

We advise to temporarily pause participating in the markets should prices decline below the mid white line!

All charts timely posted in our telegram channel.

About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

MIDAS TOUCH CONSULTING NEWSLETTER

Receive in depth market analysis and profitable investment ideas by signing up for our free newsletter.
Email address