BTC: Applying Phoenix Ascending and B-Bands with Current Action
Hi Everyone! I hope everyone is doing okay. I'm doing fine... I'm about to get serious with prepping my house to put it on the market to sell and invest in some crypto. Hopefully, I'm not too late putting it up for sale. Likely around end of March, 2024.
Anyway, I wanted to take the time to point out several important things regarding current level of the Red Line in the 12-hour, 24-hour, 2-Day and 3-Day time frames. You should find this video quite helpful in understanding how to use Phoenix Ascending indicator in conjunction with Bad Ass B-Bands.
For those who do not understand English and require copying and pasting text in a translator...
The Red Line in the 12-hour is NOT ready to go up from White Level 70 within Phoenix Ascending. Therefore, the probability of the price action going up from the White Upper B-Band and creating expansion of the B-Bands in the 12-hour is a relatively LOW probability.
The Red Line in the 24-hour is NOT ready to go up from Yellow Level 50 anytime soon. Therefore, the probability of the price action rising up from the Yellow B-Band Basis is relatively low. Yes, there are times in which we see the price action OVER-EXTEND up. But the price will eventually get back in line with what level the Red Line is within Phoenix Ascending.
The Red Line in the 2-Day is NOT ready to go up from Magenta Level 40. Therefore, the Magenta Lower B-Band in the 2-Day has a rather high probability of acting as RESISTANCE. Just as the Yellow B-Band Basis in the 24-hour has a high probability of acting as resistance.
CONCLUSION: Yes, we are currently going up. However, do we know if we will continue trending up for a long period of time? No... We don't know what we don't know until we know it. This is why I recommend a trading strategy I refer to as "Scalp/Swing Hybrid." If you were using this type of trading strategy, you would have opened a long position somewhere in between the Magenta and White Lower B-Bands in the 12-hour; with the intent of closing 50 percent of your position potentially at the Magenta or White Upper B-Bands in the 12-hour time frame. Why? Well, is the Red Line in the 12-hour ready to go up from White Level 70? No... Therefore, the Magenta/White Upper B-Bands would be your target range to close 50% of your position and let the remaining 50% of your position "ride" (continue). The first part of your trade was the "scalp" portion and the remaining 50% is your POTENTIAL "swing" portion. Hence, the name "Scalp/Swing Hybrid."
I hope this publication was helpful.
Happy Trading and Stay Awesome!
David
Anyway, I wanted to take the time to point out several important things regarding current level of the Red Line in the 12-hour, 24-hour, 2-Day and 3-Day time frames. You should find this video quite helpful in understanding how to use Phoenix Ascending indicator in conjunction with Bad Ass B-Bands.
For those who do not understand English and require copying and pasting text in a translator...
The Red Line in the 12-hour is NOT ready to go up from White Level 70 within Phoenix Ascending. Therefore, the probability of the price action going up from the White Upper B-Band and creating expansion of the B-Bands in the 12-hour is a relatively LOW probability.
The Red Line in the 24-hour is NOT ready to go up from Yellow Level 50 anytime soon. Therefore, the probability of the price action rising up from the Yellow B-Band Basis is relatively low. Yes, there are times in which we see the price action OVER-EXTEND up. But the price will eventually get back in line with what level the Red Line is within Phoenix Ascending.
The Red Line in the 2-Day is NOT ready to go up from Magenta Level 40. Therefore, the Magenta Lower B-Band in the 2-Day has a rather high probability of acting as RESISTANCE. Just as the Yellow B-Band Basis in the 24-hour has a high probability of acting as resistance.
CONCLUSION: Yes, we are currently going up. However, do we know if we will continue trending up for a long period of time? No... We don't know what we don't know until we know it. This is why I recommend a trading strategy I refer to as "Scalp/Swing Hybrid." If you were using this type of trading strategy, you would have opened a long position somewhere in between the Magenta and White Lower B-Bands in the 12-hour; with the intent of closing 50 percent of your position potentially at the Magenta or White Upper B-Bands in the 12-hour time frame. Why? Well, is the Red Line in the 12-hour ready to go up from White Level 70? No... Therefore, the Magenta/White Upper B-Bands would be your target range to close 50% of your position and let the remaining 50% of your position "ride" (continue). The first part of your trade was the "scalp" portion and the remaining 50% is your POTENTIAL "swing" portion. Hence, the name "Scalp/Swing Hybrid."
I hope this publication was helpful.
Happy Trading and Stay Awesome!
David
By the way, in regard to the "Scalp/Swing Hybrid" trade example... You should not forget to create a stop loss just above your long entry shortly after taking 50% profit on the scalp portion of your trade. Why? To lock in your profits you just took in case the "swing" portion of the trade does not play out.