There is a nice uptrend line for the last 2 days that is lending to a possible market reversal.
Oftentimes when the market is consolidating a level it will tighten up our indicators, which are all based on price action. So for this setup we are seeing the Daily Pivot Range indicator, the 3 Day Rolling Pivot Range indicator and the Opening Range indicator overlapping, this is significant.
While the bias is somewhat neutral for the time being, particularly with the Daily Pivot Moving Averages flattening out, the market is setting up for a rally. But it will have to confirm this strength by closing above the consolidated indicator levels, mentioned above.
The action to take is to place a buy order to enter the market long if the market closes above the Daily Pivot high. This will confirm the market is shifting bias to the long side.
Place the stop loss at the Opening Range low and the profit target stated below.
Note: If triggered, look for the trade to play out over a period of 24-36 hours and if no significant move after 3 hours, exit the trade. Keep in mind the 3 hours is not a rule but a guideline as you will want to use discretion when managing the trade.
Entry Price: 9.2641
Stop Loss: 8.9999
Profit Targets: First profit target 10.5500. Second profit target 11.6500. Once price reaches the first profit target raise the stop loss to breakeven. Then if the market follows through to higher levels manage the trade by trailing a stop loss .2000 points behind until second profit target is reached or stopped out.
Disclaimer: The writer owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.