Loading ...Sunday Night Bitcoin – Perfect Symmetry
Bitcoin futures have developed an almost perfect symetrical pattern on the 4 hour chart during this first half of July. Its not clear to me if price will break higher or lower though so caution is warranted. These kinds of patterns have gotten me in deep trouble in the past since I almost always try to insert some personal bias into why price should go either North or South.
And mysteriously, I almost ALWAYS get it wrong! Someone really needs to do research on why that is.
If you have had the same experience then don’t despair because it happens to the best of us. My approach these days is to just wait and see what price will decide…. then go with the new trend with confidence. Alternatively you could trade in smaller amounts and stick to one minute charts thus keeping your risk low while you wait. Don’t turn your back on it though. These symmetrical patterns have a notorious way of suddenly breaking out (or down) with violence so you will want to keep a stop in place for that moment should you have bet wrong.
Do they have options? If so, just buy equal amounts of puts and calls(straddle) and you are all set.
Or hey, since you are almost always wrong how about always betting the opposite direction you think, like doing a George Costanza, for anybody who can appreciate that. If your track record remains true to form you should then have an ‘almost always right’ result. Dig it.
LOL, that’s funny Randerson because I did try that once. And it worked out well. But I could not stomache doing it again since it went against every fiber in my body. I figured it was good luck rather than smart trading and could not continue. I don’t like gambling to be honest. Even in the markets I want to think that my buying and selling are based on skill and reasoning rather than dice throws. So if it come down to doing a Costanza every day I would probably just quit instead.