Breaking Bullish Market Structure

Quick excerpt on breaking bullish MS

So we actually haven't seen a real MTF/HTF break of market structure on Bitcoin just yet but here's what I would be looking for on the break to stop buying dips and open shorts instead

So what you're seeing is a mark up into a parabolic top. How do we know it's a parabolic top? Well, usually you'll see volume going up and OI probably staying stagnant or going down. Basically the last push of a run.

We're not shorting the top though

The idea is to have a loose stop loss that prevents us from getting killed on the inevitable dump

Where we short is here

You can long the dump into support as well but for the sake of simplicity, that's your market structure break.

A high volume peak signifying the parabolic blow off (you can validate with many other confluences)

You'll literally know because of how violent the move is and just the emotions that come with it.

At the top, it'll be very BTFD heavy, in my opinion. but notice that so far, all the dips we're buying come WITHOUT a break in MS

No lows are broken

Not even tested

As in ANYONE who bought the dip is in profit

There's nobody that bought the dump, that were even uncomfortable for more than maybe an hour max.

That will change and when it does, we need to change with it.

That's what I'm talking about when I'm talking bullish MS breaks.

LTF breaks happen often

They're near irrelevant when you’re placing them into a HTF context. It has to be multiple LTF breaks before you can extrapolate it to a HTF move.

Tldr

>High volume blow off, stagnant OI

>Violent dump that breaks MS

>Have a stop loss that assumes no break of MS/lows not getting raided

>Short on the bounce/retest (not before)

>MS should continue to trend down despite BTFD/Positive sentiment

>Lots of buying into a level with little reward