đ Bitcoin and Market Structure: The Backbone of Price Action and Consistent Profits đĄ
Market structure is the foundation of successful trading, especially with assets like $BTC and $ETH . Understanding how price behaves over time can make all the difference. Hereâs how I approach it for consistent profits.
đ§ Price Structure: Key to Market Behavior
Market structure shows how price moves - it reflects the overall trend.
Uptrend: Higher highs and higher lows - this signals bullish momentum. Traders focus on breakouts above resistance or retests at support.
Downtrend: Lower highs and lower lows, a sign of bearish control. In this phase, traders look for retracements at Fibonacci levels and use MACD to confirm the bearish trend.
đ Trend vs. Range: Market Phases
Trends provide clear directions and offer profitable opportunities.
Range-bound markets trade within support and resistance levels. Understanding when a trend shifts or a range forms is key. Traders must be ready for a breakout or a potential reversal.
đ Knowing When the Market Shifts
In an uptrend: The structure changes when higher highs turn into lower highs - a possible reversal signal.
In a range: Consolidation often precedes a breakout. Knowing these phases helps me decide when to act and when to wait for the perfect setup.
đŹ My Take
Markets are unpredictable, but when you stick to the structure, you minimize risk and maximize opportunities. I always make sure to conduct thorough research and follow my plan. If I trust the structure, I know the market will eventually move in my favor.