Triangle Pattern Trade 6 DEC 2013 Recap

Yesterday I posted details about an upward sloping triangle pattern seen on the 1 hour BTC USD chart. This is a continuation pattern and indicates that the prior downtrend should continue. This is how the trades based on the pattern played out:

I placed a short position overnight which assumed the pattern would resolve normally i.e. trade in a narrow rising channel then break the lower triangle support line and resume the downtrend to USD 900. However, these trades were stopped out for a loss of GBP 11.50 around 07:30 as the price rose towards resistance. I stood aside and waited to see if this rally would fail where I would place a further short position.

A further short position was placed around 08:00 and then the long wait began! The lower support line was broken around 11:00 but it wasn't till 13:00 that the downtrend began. Slowly.

My estimated target was USD 900 and when prices paused around USD 984, I closed half of my position. The remaining half was closed a little lower because BTC was looking very oversold on all timeframes (15m, 1H & 4H) and I felt further possible downside was limited. My total profit for the day was GBP 25.15 (this includes the earlier losses of GBP 11.50!).

My account balance now stands at GBP83.10 and is approx GBP 45 higher than the start of the week. A couple of zeros on the end of those figures would be nice but if I can nearly double every week ... the point of this blog is not to get rich but to learn how to trade safely. Bitcoin is very volatile and requires careful trading to avoid total loss of capital.

Join in the fun and sign up for an account with Plus500 now - you will get a GBP 20 signup bonus and no deposit is required. Click on the banner below to register your account - only your email address and a password is required. Get set to trade bitcoin next week and learn how to trade volatility.