I found an interesting setup for a structure based trading / swing trading with a very interesting Risk/Reward, which I wanted to share with you.
(Please take into account that I do not trade BitCoin!)
COINBASE:BTCEUR has been in a down trend since middle December and until further confirmation of a rotation in trend, I stay on this market.
Why do I predict that price could reach that area?
The Rejection Candle on February 2nd - it shows the red area of support interests the buyers (Counter-Trend-Traders and Profit-Taking-Sellers)
Why is the entry in the Green Area?
I find that level very interesting because of 2 technical aspects: Structure (that was respected earlier) and the different Fibonacci Ratios that land inside that level.
Another fact would also be where counter-trend-traders would take their profits and the trend-following-traders would be interested to sell.
Why is the Stop-Loss where it is, because if it breaks that level, we could see a rotation in trend (after confirmation), the market could turn and in the end I want to be already out of the trade, accept the loss and move onto the next trade.
For Traders with multiple positions / Scaling-out strategies I would take the first target @7100 (previous support) and the second @5100 (next support after a breakout)
If you like my idea give it a thumbs up, I will very much appreciate it :)
Take care & Happy Pip-Hunting