1. Update of high or low:
If a new high or low appears on the chart, there is a 70–80% probability that it will be updated. This indicates that the market is striving to continue the current trend, and such points often become liquidity levels.
2. False breakouts:
If each subsequent false breakout is higher than the previous one, it indicates that the trend structure remains unchanged. This means that the market is gradually accumulating liquidity for further movement, and the trend remains stable.
3. Absence of reversal signals:
If on the chart:
– There are no reverse engulfings indicating attempts to change market sentiment,
– And there are no impulses in the opposite direction, indicating the strength of buyers or sellers ready to change the structure,
then the most logical strategy is to work in continuation of the current trend, following the movement.
At such moments, the probability of a pullback is minimal, and entry points in the trend are more reliable.
What is happening now with Bitcoin is a perfect confirmation of that.
By the way, with the new ATH for us! It is also important to note that the capitalization of the cryptocurrency market has exceeded 3 trillion dollars, breaking the record set in 2021. Thus, we have achieved yet another new ATH.
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