Inside the channel, we see the formation of a “Cup with a handle” reversal pattern, which at the moment has become a reversal pattern after a downtrend. Now rollback after growth of + 111% which I predicted in past trading ideas for this coin in updates
Double bottom and entrance to the former accumulation channel.
And the result after 1 month
BAT There is a "Cup" Coin in the channel Option "Cup with handle
The result is two days later.
Impulse + 23%
A total profit of 111%.
All important areas if this pattern will work out I showed on the chart. The potential is from + 20% to + 111%. In more detail, I described everything on a large scale in this trading idea:
BAT Cup with handle from +20 to 111% Channel bottom
A very important point (indicated in red) is the bottom of the horizontal channel. Breaking it and fixing under it will mean a . _____________________________________________________________
Channel development potential + 140% The risk is minimal, as the price is almost at the bottom of the channel.
The potential for working out the “Cup with Handle” figure itself is from + 20% to + 111%, depending on which scenario we will go.
+ 20% -to the resistance of the cup, if we do not break through, then the figure is not confirmed.
+ 48% - still local high
+ 111% - full working out of the figure’s potential, as in the book.
Stop loss under the red zone. The lower boundary of the global horizontal channel. Or depending on the trading strategy that you use ______________________________________________________________
It does not matter if you are right or wrong. The only important thing is how much money you earn when you're right, and how much money you lose when you're wrong.
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.
fixing prices above resistance "Cups with a handle" means strong growth. The "cup-and-handle" figure will fulfill its trading target
+ 18% from the second entry point (breaking through the cup resistance)
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.
But this does not necessarily happen.