As you can see Cardano is respecting the fibonacci levels creating a harmonical AB=CD pattern which if following
this principle of taking trades gives us a nice breakout W pattern to use.
We can see this by taking a look at the A to B leg where the level of 786 was respected "psychologically".
That is though not enough of a proof for a shaping harmonical pattern.
If you follow the rulebook for these kind of trades for it to be a "valid" the retracement of the BC should be mirrored.
Now the "Ideal" CD leg should be longer than AB but a shorter one doesn't invalidate the pattern in any way.
Biased this only means the the dominant trend bullish in this case very strong.
Of course behind this are the fundamental reasons which if you dont know them i recommend you do
a research on.
Another thing to take a look at is that on the CD leg the price is going lower on falling volume which if by the
book following VPA means that people are buying into the supply which panicking traders are providing with trying to cut their losses.
A strong emphasis for this is also that the price is currently at a demand level of price you can see this by
looking to the left on the chart for previous price action
In the long-term i expect the price obviously to go higher but in the short term i think that it if following
these principles of trading reach the level of 800 - 870 satoshi before any major retracement.
this principle of taking trades gives us a nice breakout W pattern to use.
We can see this by taking a look at the A to B leg where the level of 786 was respected "psychologically".
That is though not enough of a proof for a shaping harmonical pattern.
If you follow the rulebook for these kind of trades for it to be a "valid" the retracement of the BC should be mirrored.
Now the "Ideal" CD leg should be longer than AB but a shorter one doesn't invalidate the pattern in any way.
Biased this only means the the dominant trend bullish in this case very strong.
Of course behind this are the fundamental reasons which if you dont know them i recommend you do
a research on.
Another thing to take a look at is that on the CD leg the price is going lower on falling volume which if by the
book following VPA means that people are buying into the supply which panicking traders are providing with trying to cut their losses.
A strong emphasis for this is also that the price is currently at a demand level of price you can see this by
looking to the left on the chart for previous price action
In the long-term i expect the price obviously to go higher but in the short term i think that it if following
these principles of trading reach the level of 800 - 870 satoshi before any major retracement.
Comment:
Please leave a comment with your thoughts as i would like to know what you think if you find this bad or good or whatever it is still interesting nevertheless
Comment:
I don't know if you might see the similarities here, but the wave to the left is identical in the movements to the wave on the right and if this is to continue this way the 3rd is a much more violent one judging on the size differences.
This is visible on the 30 minute chart
This is visible on the 30 minute chart
Trade closed: target reached