Mar 19th 2019, Crypto Chartbook

Phase 3

Timing of entries is very important to allow for less risk in regards to stop size. It is in “Phase 3” (= the end segment) of bottom or top building markets, where one can find the highest density of these low risk entries.

In last week´s chartbook publication we had identified just such an entry opportunity on Bitcoin:

BTCUSDT monthly chart as of March 19th, 2019

After a year of declining markets to an almost 100 percent retracement, we had a trend line break (yellow line) to the upside.

The weekly chart below shows even more pronounced, of how we have a 7 week directional up move. We entered the market at 3861.3 and took aggressive, risk mitigating, profits shortly thereafter. The target of taking 50 percent of position size off, got filled at 4051.3.

That equals to a instant return of nearly 5 percent:

BTCUSDT weekly chart as of March 19th, 2019

It might appear to be very early profit taking, but the first point out = “financing target” is dedicated to only take care of risk. While novices have very wide stops for these higher time frame , longer term trades, we are content to now have created a virtual zero risk market participation scenario. This approach allows for multiple tries instead of insisting “to be right” with ones convictions.

Again so it requires Phase 3 entry timing.

The daily chart makes the bottom range building since November last year more visually transparent:

BTCUSDT daily chart as of March 19th, 2019 a

An imperative additional factor of added edge is evident in the daily chart below. The rounding bottom is the strongest of the variant bottom building formations.

BTCUSDT daily chart as of March 19th, 2019 b

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About the Author: Korbinian Koller

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.