Quick breakdown on a possible $SOL trade, with some method behind the madness, true PA style only
Price action and price action concepts work in any market for any #Crypto or #cryptocurrency, or anything from forex to stocks.
Lets start on the 1H chart to get an idea:
We can see that we can define a range from MS that has formed after the impulse move upwards
From the initial impulse move outside of the range, we can leave this as a buyside liquidity target.
We see price sweep range high, and then range lows in its search for liquidity
Price hits the initial liquidity target and then, naturally, seeks the next liquidity target of the previous range lows where participants would have stored their stop losses
Then we see the PA unfold with a 0.786 fib level test, a subsequent 0.702 level test, and then a run down to range low.
We don't assume that price is going to continue out of the range until it occurs, so you can take profits and move SL at range low, or take full profit here
So where to from here for a possible set up?
Breakdown in image of structure etc
And here is the zoomed out version.
Maintaining the range after a potential range low recovery
Is this going to eventuate? We don't know yet, but either way you've hopefully gained some knowledge from this thread
Thanks to @Delta_Exchange for helping me bring this your way
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Here's my 100 weeks of backtested $EURUSD price action from June 15 2020 to 09 May 2022, here's what is covered:
- Occurrence of high & low of the week
- % of high and low of the week per day
- % of Mondays high / low being swept on a given day
Took me a while, hope you enjoy
The high and low of the week
Here we can determine that the low of the week fell 38/100 times on a Mon, while the high of the week was also most likely to form on this day too with 31/100 occurrences
Note that there's during the week, there's more of a spread compared to $BTC
Percentage / Chance wise, you can see that Monday is more likely to be the low of the week by a factor of 5, 2, and 3 compared to a T, W, or Th respectively
Friday is different though.
With the high of the wk, Monday leads, followed by a Thurs, then Friday.
I made a free Price Action course not long ago - I'll share some detailed threads on portions of the course so you don't have to spend hours watching them when trading #Bitcoin & #Altcoins
We'll jump ahead to Module 4 - Ranges & Targets.
Why? Because I loved sharing this one!
What's in a Range?
A range is simply defined by anchoring two points on a chart based on:
A timeframe (daily, weekly, monthly etc)
Market structure
Or a combination of both
The method I use to anchor the range is a Fibonacci Tool, with values set at 1, 0.5, and 0
Range Tool Setup 1/1
1) First Select the 3rd item down on the left hand side menu
Then select "Fib Retracement"
2) Open up the settings of the Fib Retracement Tool, then set up the Fib tool to show the 0, 1, and 0.5 levels
The Trend Continuation fibs - covered in upcoming Module 3
Of course these are originally based on the ICT fibs, but nuanced per the following for #crypto & #bitcoin
- 0.72 entry point
- A negative 0.12 level
- 0.28 level
Why though?
The 0.72 Entry Point:
The reason for this is simple - it's the mid point of the 0.66 and 0.786 levels of the fib, where I've personally found much better entries and setups using this
The negative 0.12 level:
Included in this particular suite of fibs because you're looking for a get in, get out move that simply beats previous market structure.
By entering at the 0.72 level, this -0.12 level yields a 3RR move if the SL is at 1.
I backtested 100 weeks of $BTC #bitcoin price action from June 15 2020 to 09 May 2022, was able to determine the below:
- Occurrence of high & low of the week
- % of high and low of the week per day
- % of Mondays high / low being swept on a given day
8 hrs of research for you:
The high and low of the week
Here we can determine that the low of the week fell 43/100 times on a Mon, while the high of the week was also most likely to form on this day too with 27/100 occurrences
The rest of the days are generally similar, bar Tuesday lows & weekend highs
Percentage / Chance wise, it's obviously a no brainer in the fact that given the sample data of 100 weeks, that the % are simply a given of the numbers above