Dec 13th 2019, Crypto Chartbook – Building positions, arriving at target loaded

Building positions, arriving at target loaded

December markets are tricky. With the closing of the year come rollovers in futures markets, tax considerations, hedge fund portfolio allocations due to accountability and much more. Markets are a reflection of human behavior and the holidays are challenging to many. From family reunions to financial responsibilities. A whole lot of psychology influencing factors are bundled into a small increment of time. Consequently idiosyncrasies get mirrored onto the market and its behavior. It is not unusual that this time of uncertainty results into strong moves right after New Years. As contrarians, we rather partake anticipatory in the market versus reactionary late actions. One such way of participating in this specific time of the year is building positions, arriving at target loaded.

Bitcoin has one historical trading attribute, to be able to take off very quickly. This requires extra attention. Larger time frame turning points don’t want to be missed.

 Monthly chart, BTC/USDT, December 8th 2019, “caught the recent lows just right”:

Bitcoin in TetherUS, daily chart as of December 8th 2019

Bitcoin in TetherUS, daily chart as of December 8th 2019

We were able to catch recent lows on November 25th 2019 with a larger position size. We took partial profits and still carry a remainder part of the position. After that we reloaded this core position with smaller size reentries. All trade entries and exits are posted live in our telegram channel.

Building positions-arriving at target loaded, BTC/USDT, daily chart, December 9th 2019, “triangle building”:

Bitcoin in TetherUS, daily chart as of December 9th 2019. Building positions, arriving at target loaded

Bitcoin in TetherUS, daily chart as of December 9th 2019

The market formed a triangle on the daily time frame. This usually causes a strong break in either direction.

BTC/USDT, daily chart, 12/12/2019, “attractive reentry points”:

Bitcoin in TetherUS, daily chart as of December 12th 2019. Building positions, arriving at target loaded

Bitcoin in TetherUS, daily chart as of December 12th 2019

The fact that we broke only modestly through support points towards a likelihood of again low risk position building entry points.

Building positions, arriving at target loaded.

To sum up, can we break lower than the recent US$6,515.00 lows? Absolutely. The importance here is not to loose focus in a slightly dreary environment. In other words, there is a tendency to get easily distracted by the turmoil of the holiday preparations. Weak psychology is what the market flushes out. Once bitcoin gets in motion it is harder to catch up than diligently building a position here. We do not want to push for over trading or any other high risk participation. We would like to remind you however, that extraordinary circumstances require the extra preparedness of the astute market participant.

All charts timely posted in our telegram channel.

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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.


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