SpartaBTC

BAT There is a "Cup" Coin in the channel Option "Cup with handle

Long
BITFINEX:BATBTC   Basic Attention Token / Bitcoin
After the breakdown of the horizontal channel, the figure "double bottom" appeared on the chart of the coin. This was in the previous trading idea for this coin in the update. Profit amounted to + 76%

The situation is now.
At the moment, we have the shape of a cup (saucer, rounded bottom) which, at the 4th stage (breaking through the resistance of the "bowl"), can go up to the indicated resistance. Another option - a downward channel can be drawn, which will act as the "Handle" of the "Cup with handle" figure. It is very important that if we follow the second scenario, the red zone is important, which will act as a support for the global channel. Roughly speaking, a successful retest of it will give a signal in growth over the entire width of the channel, and this is + 160%. But if support breaks through, then in the near future it will be better to forget about trading this coin. This is a very unlikely scenario. But this must always be remembered.
At the expense of the coin, the coin is very strong fundamentally, this is one of those coins that I constantly trade and increase my position. I’ve been trading for almost a year and a half BAT.
For example, this trading idea for trading BAT / BTC in a horizontal channel for November 2018.

I showed all three options on the chart. The most likely is the "Cup with handle."

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A bit about the figures on the charts

Saucer shape (Bowl, Rounded bottom).


The Saucer shape, or as it is often called the Chalice, the Rounded bottom is a long-term figure that predicts long-term growth that looks like a concave arc. The figure is found on large timeframes. In most cases, on weeks, but on instruments that quickly go through their cycle (cryptocurrency), they can occur on a daily timeframe .

The rounded bottom is quite rare, but very reliable bullish pattern . Typically, a pattern is formed at the end of a long-term “bearish trend” and usually gives a signal of a market reversal.

It should be noted that the ideal symmetry of the figure is not a prerequisite. The main thing is the presence of its key components: the descent of the price, the bottom, the rise in price and the breaking of resistance.

Ideally, the formation of the “Saucer” pattern usually occurs in a narrow price range, in a calm market with the least volatility , when a trend reversal occurs smoothly, without strong price spikes. If, however, price spikes occur, then very soon the price will return to its usual range. The figure signals the long-term nature of the formation of a trend movement. The longer the figure forms in time, the stronger the signal is considered. The most reliable are the figures formed on weekly charts for at least several months. The older the time frame, the more reliable the signal. The rounded bottom is a long-term figure, and can stretch on the chart for a long period.
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Stages of the formation of the figure.


The Saucer figure consists of the following steps:


1) The descent of the price is the first phase of the figure. Price fall trend with a gradual slowdown. In the classical case, it should be a smooth arc, but in practice its shape can be flat or contain, on the contrary, correction minima and maxima. The main condition in this case is the gradually decelerating pace of price reduction.

2) The bottom is the lowest point of prices. It is the geometric center of the figure. It should be located on a gentle bottom (smooth bottom, without peaks). Although sometimes such a formation as the "Thorn" down or closed squeezes comes across at the bottom. The main thing is that these local formations do not violate the overall picture of the figure and movement in the global. If the lower point of the price forms the so-called platform on the chart, then the trading volumes gradually decrease, and at the moment of the price jump up sharply increase. Another surge in prices may be a signal to buy if the maximum of current prices is higher than the previous maximum.

3) Ascent of the price - after the minimum follows the ascent, which should ideally be symmetrical to the descent, and should last as long as the first phase (the descent of the price). There is a tendency to increase prices with a gradual acceleration.

4) The intersection of the resistance formed by the upper boundary of the whole figure (passes through the maximum point of the figure at the beginning of the period of its formation) is an additional confirmation of the rounded bottom and the final phase of the formation of the figure. After breaking through and fixing the price, the resistance level turns into a support level . When crossing the resistance, the volume rises as a rule.
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The figure "Cup with handle" (Mug).

The "Cup with handle" ("Mug") figure is a figure of the continuation of the trend. It is very reminiscent of the Saucer reversal pattern, but without the handle. One of the main features of this figure is that it is a continuation figure precisely on an uptrend.
The figure got its interesting name because of the external similarity with the shape of the cup.

The "Cup with handle" figure (Mug) consists of two parts:
1) Bowls.
2) Pens.

This pattern appears on an uptrend. A pattern begins to form when a bottom forms in a concave arc on an uptrend. This is the first part of the figure - "Bowl". Upon completion, another bottom is formed, much smaller than the first. The edges of the "Bowl" and "Handle" are at approximately the same level (form resistance). Upon completion of the formation of the "Handle", the price breaks the resistance line from the bottom up and the figure is successfully confirmed.
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Shape shaping and volume change.

As a rule, the volume at the bottom of the "Cup" has a minimum value. "Cups" should gradually increase. The prices of pens should be reduced during formation. On the breakthrough of resistance, “Pens” are of high importance. When the resistance of the figure breaks through.
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You need not only to know the rules of technical analysis , but also to understand what and how and why it works.
All successful bidding.
Comment: +23% from the cup breakout level
+110 % from the initial entrance
Comment:
Comment:
BAT is at the bottom of its former channel Potential + 140%
Comment: BAT starts, fixing above the resistance of "Cups with a handle" will mean strong growth. If this happens, then this resistance will act as a launching pad for the flight of the rocket.

If the resistance of this figure cannot be overcome, then the price will flat in the range between the resistance and the bottom of the channel.
Comment: The first target of the sale is a completed
fixing prices above resistance "Cups with a handle" means strong growth. The "cup-and-handle" figure will fulfill its trading target
Trade closed: target reached: + 36% from the first entry point or
+ 18% from the second entry point (breaking through the cup resistance)
Trade active
Comment: Now the coin is at the bottom in the global channel in increments of 160%.
A local uptrend within this channel has broken through, thereby confirming the formation of the “Inverted Dragon” figure.

Short targets and at the same time points for observing a price reversal:
1) Hump level.
2) The support level of the local and global horizontal channel (very strong level).
3) Head Level (at the same time minimum price).

The local horizontal channel has a step of 44%.
The global horizontal channel has a step of 160%

I showed entry points on the chart.

The trading potential in the local channel is from +30 to + 40%. Also, if the price breaks through and fixes above the channel resistance line, the local growth potential is still the height of the previous channel by + 40%, the next strong resistance is at this level.

You can also enter at the head level of the inverted dragon when confirming support. It is unlikely that the price will fall to this level, but you need to be prepared for those things that seem unlikely.

It all depends on the breakthrough / retention of those zones that I showed on the chart.
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Comments

I'm in BAT too - there's a pitchfork line around 36xx and the 200 MA on 1 day chart around 33xx - I'm definitely a fan of BAT too . Nice explanation . Thanks .
+1 Reply
SpartaBTC shimmeringpath
@shimmeringpath, Very good choice)
+1 Reply
Yeah , I've been expecting a slow pullback on BAT - I'm waiting - never heard the inverted dragon though ! Thanks for update
Reply
SpartaBTC shimmeringpath
@shimmeringpath, A teaching idea where a detailed review of the "Inverted Dragon" formation is made
Reply
@SpartaBTC, Thank you ! Snowing here in NYC - I'm stuck inside . Learning new charts definitely helps pass the time.
Reply
SpartaBTC shimmeringpath
@shimmeringpath, KNOWLEDGE IS POWER !!!
Reply
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