฿ Bitcoin BTC/USD Daily Video, October 24, 2022

[Sive Morten]

Good morning,

Market stands absolutely indecision now, forming now clear direction and patterns. Longer term picture remains bearish, and we suggest that downside breakout is just a question of time:

 

[Tchurik]

Hi Sive, hi everyone,

Here's a trading plan I am considering just because of last week candle, DRPO Weekly Buy on BTC
It is despite any fundamentals right now, but i guess sometimes technical can be right before we are even able to justify it.

Pros:
DRPO is a contrarian trade, and a lot of traders are expecting downward continuation
The ratio is very good, with a small risk and clear stop below the Bottom

Cons:
Maybe a 2 weeks charts would be more relevant, cause action is very slow
There is no fundamentals behind this trade

I hope you can enlight me with your thoughts about this trade, is it still technicly right and approved by Di Napoli's method?
In your experience this kind of action could lead to a DRPO?
Feel free to comment my plan, i would appreciate



Thanks a lot

 

[Sive Morten]

Hi Sive, hi everyone,

Here's a trading plan I am considering just because of last week candle, DRPO Weekly Buy on BTC
It is despite any fundamentals right now, but i guess sometimes technical can be right before we are even able to justify it.

Pros:
DRPO is a contrarian trade, and a lot of traders are expecting downward continuation
The ratio is very good, with a small risk and clear stop below the Bottom

Cons:
Maybe a 2 weeks charts would be more relevant, cause action is very slow
There is no fundamentals behind this trade

I hope you can enlight me with your thoughts about this trade, is it still technicly right and approved by Di Napoli's method?
In your experience this kind of action could lead to a DRPO?
Feel free to comment my plan, i would appreciate



Thanks a lot

Hi mate, indeed, by the shape it looks OK, no flaws to DRPO setup or shape. Good observation
I see only single weakness, despite fundamentals - no sign of downside breakout attempt. DRPO is a capitulation of the bears. It means that should try to break the lows but fail. This lets DRPO to work properly. But here we do not see any attempt of breakout, market stands around the bottom. And don't forget about bearish dynamic pressure here.
It doesn't mean that DRPO definitely fails, not necessary. Situation could change fast (west starts attack on China after Xi victory), but these are just weakness that I see. Anyway, shape is OK and maybe it makes sense to try. Besides, it is weekly. It means that on daily, 4H chart we could get early bullish patterns that could help a lot.

 

[Tchurik]

Hi mate, indeed, by the shape it looks OK, no flaws to DRPO setup or shape. Good observation
I see only single weakness, despite fundamentals - no sign of downside breakout attempt. DRPO is a capitulation of the bears. It means that should try to break the lows but fail. This lets DRPO to work properly. But here we do not see any attempt of breakout, market stands around the bottom. And don't forget about bearish dynamic pressure here.
It doesn't mean that DRPO definitely fails, not necessary. Situation could change fast (west starts attack on China after Xi victory), but these are just weakness that I see. Anyway, shape is OK and maybe it makes sense to try. Besides, it is weekly. It means that on daily, 4H chart we could get early bullish patterns that could help a lot.

Thanks for your answer Sive,
Volume is coming back, bonds and dollar are going south, let's see where this trade leeds, it is starting good!!