Sean Erikson

The channels are shown in red and blue. Red channels are down-trends, blue-channels are up-trends. The channels are our main tool, and are supplemented by price targets, as well as time targets. Price targets at various swings are shown as reactangles and the arrows at the very bottom of the chart and top of the chart are time targets. These three things, along with price action, are all you need in order to trade this market. No squiggly lines, no forecasts, no calculations, etc. Just go with the flow...

I have labled the key areas and provide a description following:

A:BTC has been moving downward in this channel, and is bumping up against the top. As it breaks, we would have a buy signal here. However, the blue channel, which is the upward-channel that price will be following after the break, shows that price is at the very top of the channel, which made it a sligthly risker trade. In general, we'd have waited for a pullback within the channel. This pullback happened in Sept 2021, shown by the fuchsia channel down into point B.

B:The pullback takes us to the bottom of the blue channel. This allows us to get long with a very manageable risk (underneath the channel). Note that we've got a time target for a low here (blue arrow at bottom).

C:We'd have lightened our position as we hit the top of our channel, and bumped up against our price target. Note that this price target was solved all the way back at the low, before point A. A time target is sitting here as well. We don't go against the trend though, so we do not short yet, but definitely take our profits.

D:Breaking the upward-moving channel is the signal that it is time to go short.

E:This is the reverse of the previous high. Hitting a price target at the same time a time target comes in tells us it is profit taking time.

F:The market is not quite able to break through the top of the channel, and slides down into point G. Note that F happened at a price target, which suggests there's not a ton of upside. A time target kicks us down into G.

G:Channel breaks. The trend is up. We go long.

H:We hit our price projection again and have a time signal so Time/Price kick us down again.

I:The downside of the channel is broken. Trend is down. Go short!

J:This is a time target in the future, giving us an idea of a setup for the future. If BTC rallies into this time, up against the upper red line, but then can't break it, that will be the time to add to the short. We should have taken profits on a big portion of our trade already, having been bumping against the lower channel lines and moving through two low time targets.