"Jack's Trading Classroom" - After entering a long position on BTCUSD, looking for the correct exit point based on patterns

Original trading lesson by Jack Shih on "Finding the Correct Exit Point for BTCUSD Long Positions Based on Patterns"

On November 2, 2020, we published a technical analysis titled "Waiting for Entry Conditions for BTCUSD with the Same Strategy." After the article was released, we also mentioned the same entry conditions during our live broadcast. Later, in the late night yesterday, Bitcoin on the one-hour candlestick chart, before the EMA12 crossed below the channel formed by EMA144 and EMA169, the price of the candlestick closed higher than the EMA12 filter line. Therefore, our long entry conditions were triggered. Today, we will continue to update.

Currently, on the one-hour candlestick chart of BTCUSD, after confirming the long entry, the entry point for long positions is indicated by the black circle in the chart. Our stop loss should be set at the low point of 13204.5. The price has not yet reached our preset stop-loss level as it forms a W-bottom double bottom pattern.

Next, we can look for a good exit point based on the double bottom pattern. The neckline pressure of the double bottom pattern has already been broken earlier, and the first target range above can also be seen in the Fibonacci sequence 127.2-138.2 range 13855.0-13911.5. Traders holding long positions with this strategy can try to close part of their long positions in the resistance range of 13855.0-13911.5. The remaining positions can be held until the final profit target of the W-bottom at Fibonacci sequence 20014227.5. Previous articles have repeatedly mentioned the trading method of profit-taking at W-bottom and M-top targets. If you have any questions, you can refer to past article records.

You can also choose to set a protective stop loss to secure profits once the return rate reaches over 100%. These are reasonable and objective trading methods. Wishing all traders smooth transactions, and the support and resistance levels are marked by the black horizontal lines in the chart.

In recent days, the digital currency market has experienced significant volatility. It is recommended that operators strictly implement risk control and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. The article is a personal opinion, please read with caution, as cryptocurrency trading may pose risks to your capital.

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