Nothing like the waking up to a complete market selloff. This is where disciplined investors/traders separate themselves from the emotional ones. Many are realizing this morning that their magic portfolios are nothing more than fairy dust. I have mentioned in just about ever article about the post after post after post of 400% 1010%+ returns, and that this was your sign that market sentiment was way too high! This is where many new traders and investors get caught up in the FOMO and tunnel themselves into a 30%+ hole.
Anyways I did not catch the initial selloff marked in orange. I will not go into why this would have been my exit point as I missed it, but more importantly what I do when I miss it. This is why we prepare for these moments by charting. Sometimes the most ridiculous levels happen. When I hear comments like "it will never go under $1100 or $1000 again", I can tell you with almost 90% surety these are the ones panicking this morning. Even as bullish as I was on BTC' I still had labeled on my chart pullback areas. These become critical during selloffs as you already have set your mind on where to look for reversals. So in lieu of having a blank chart up on the screen with the last 4 bars red and wondering what to do, we have a chart on the screen of where there is likely to be a reversal and are planning our next move!