Trade Summary 031213

Today was a fun day!

Lots of volatility and opportunity to trade. Six trades were placed and only one lost money. All times are London UK.


 I also got a GBP 10.00 bonus for validating my ID added to my Plus500 account. Yaay!

Key levels to watch next are 1155 for longs and 1126 for shorts.

The lines drawn in pink on the above chart are called support and resistance lines. The upper line shows the level where resistance has been seen - its the level that has not been surpassed since 17:50. If the BTC price moves above this level, we may see a continuation of the uptrend and the level that was resistance could become support. The same is true of the lower line which offers support - prices have not fallen below this level in the same timeframe. If  the BTC price moves below this level, we may see a retracement in prices.

Breakout Strategy

So here we have got 2 levels - above the higher one, we want to be long (buy) and below the lower one we want to be short (sell). This is the basis of a simple breakout strategy. I will look at enhancements to this strategy aimed at reducing false signals e.g. the price appears to move with conviction past a level, a trade is triggered and then price suddenly reverses and continues in the opposite direction creating a trading loss.

Once the bitcoin price has moved past one of the levels shown above, we want to have an idea of where our trade target or exit is located. The day's high is at 1177 and the low is at 1099 and would seem to be reasonable targets for a short term trade. Let's see how these levels work overnight & tomorrow.