BTC/USD breaking out of the wedge pattern also coinciding with 50 and 200 EMA reclaim. When multiple signals support the thesis, our job is to be sure that execution and risk is defined.
Wedge patterns are generally a sign of trend continuation when broken, and when found within bullish momentum can become quite potent. BTC/USD
- Price holding above the 200 EMA
- Price holding above the 50 EMA
- Breaking wedge pattern
- Price can retest the midpoint of the wedge before the advance.
- Breaking below 200 EMA
Support – 10800.00, 50 EMA, 200 EMA
Resistance – 11200
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 10737
Supporting Entry – 10810
Candle Reversals for entry
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 10585 level and violates 200 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 10737 – Target 1 12000 = 3x Reward to Risk
Supporting Entry 10810 – Target 1 12000 = 1.75x Reward to Risk