Our analysis this morning highlighted the range we would be focusing on throughout the European morning session, and since publication, we’ve not really seen too much movement. The bitcoin price remains well within the predefined parameters, and we decided not to bring our intrarange strategy into play, so as yet we remain out of the market and net flat for the day. As a result, and to make things a little more interesting this evening, we are going to focus on our scalp framework. Specifically, we’re going to narrow our chart’s timeframe, and trade a super tight range against a breakout framework with equally tight targets and risk management parameters. So, with this in mind, here’s what we are looking at this evening.
As the chart shows, the range we are going to be trading for tonight’s session is defined by in term support at 408.27 and in term resistance at 410.22. It’s one of the tighter ranges we’ve traded, so order fill might be an issue, but let’s hope that doesn’t come in to it.
So, here’s how we are approaching things. A close above in term resistance will put us long towards a real tight upside target of 412 flat. There’s not much distance between entry and target here, so trade size comes into play. This, of course, amplifies the risk, so we’ve got to keep things extra tight on the risk side of things. A stop on this upside trade somewhere in the region of 409.5 looks sound.
Looking to the downside, if we see the bitcoin price close below in term support at 408.27, e will enter short towards an initial downside target of 406.47. A stop loss on this one around 409 flat keeps this tight and protects our upside risk by ensuring we are taken out of the trade in the event of a bias reversal.
Charts courtesy of Trading View