I made a post a few days ago on what /r/bitcoinmarkets want to see. The most upvoted comment was to talk about my past trades and even live ones. So here it is. This is my post recent trade with great success. Before reading on, I want to disclaim you of the following:
- This is my opinion of the bitcoin market; this is not an investment advice. I do this for free.
- When I make a trade, my technical knowledge at the time says that this trade has a good probability of winning. Hindsight is 20/20 and loss does happen, but that does not mean I made a bad trade.
- You may not agree with my technical analysis, but feel free to share your idea with me.
My bitcoin trade on 6-14-2014:
Why the trade? Why this price at this time?
Earlier that day, there was panic selling all the way down to 522 usd/btc. How do you spot a panic bottom? (read the concept explained section on the bottom of the post). When we have a hammer formation accompanied by a long tail, this suggest that market is close to a short term bottom. After seeing this, I wait. bitcoin prices quickly bounced after a few hours while I was at work, notice the weak volume going up.
Soon enough when Asian markets opened up, market is going down again. But it is different this time, Volume was weak on this sell-off before I bought, and we know that there is support at 545 dollars from previous rally high on 4-15-2014. I bought in at 557 with a stop of 535. I expected a double bottom formation at these levels.