Here is a great example of how Forex trading techniques can be applied to a liquid digital currency such as Bitcoin. Pin-bar candle formations at extremes usually signify a lack of buyer conviction, and are a great indicators of impending market reversals. The RSI was also showing divergence, which is another great indicator of a weakening trend. Combine the two - and you got yourself a great counter-trend trading opportunity. The same chart formations that form on Forex/Bond/Stock charts, can also be very profitably exploited in the cryptocurrency markets. In this particular case, the ideal short entry would be right at $265.30, which is right underneath the bottom of that Pin-Bar candle.This type of divergence + pin-bar combo is one of my favorite type of technical setups. If you look through my previous posts you will see that I utilize this method very frequently in my forex swing trades.
Chart Source: https://www.okcoin.com