Any instrument that is bought and sold is a trading instrument, even if it's held for years.
What Wyckoff principles support your premise that this is the bottom of the correction?
My thoughts;
1- Determine the current trend of the Market (Monthly)
On the monthly, there was a strong upwave from the base at circa 200 USD$ to the top at circa 20,000 USD$, lasting approximately 12 months.
This was followed by a strong correction to 6,500 USD$ lasting 3 months.
Judging from the extent and duration of the longer term waves, buyers have the upper hand, however, Wyckoff considered the 50% correction as indication of strength and this was violated (the current correction was circa 67%), this warrants caution as a failure to move beyond the 50% level would suggest further weakness.
2- Ones place in the current trend (weekly)
Zooming into the last 4 months of price action;
An initial downwave A took price from 20K to 6.5 K lasting 8 weeks
This was followed by upwave B from 6.5 K to 12 K lasting 3 weeks.
Then another downwave C from 12K back to test 6.5 K lasting 5 weeks
The fact that downwave C was shorter in extent and duration than downwave A suggests selling exhaustion.
The analysis of volume also suggests a potential bottom; Volume spiked on 05/02 suggesting a selling climax and remained well below the climax levels during the test last week
3- Proper timing
Finally, my entry was triggered yesterday following my prior chart after a break of the Supply Line and a Higher low at the bottom of the range.
