BATETH on Binance, 30m
After yesterday's retracement to Fibonacci level 0.786 ( Elliot Wave ABC ), we have a bearish pattern emerging with the formation of a descending triangle (red shaded area). The intriguing parts are the well defined lines of support and resistance for this continuation (sideways) movement. We have two nearly identical highs which form our line of resistance (red horizontal), and six lows which form our line of support (green horizontal).
Two possibilities. Watch the candles as they approach the upper trend line of the descending triangle.
1. It it breaks through the line of support (A), look for the bearish trend to continuing and down we go.
2. If we test the support line for a seventh time (near point A), and the bears cannot break through, and additionally we have smaller candles (losing momentum) as it approaches, we might bounce back up and through the upper trend line (top line of triangle). If this happens, we'll need to watch our horizontal line of resistance (red) and see how it tests there again, and re-evaluate.
I'm not seeing a clearly defined entry point for going long, or shorting. Thus, I will wait until we have a clearer picture, before choosing my entry point.
After yesterday's retracement to Fibonacci level 0.786 ( Elliot Wave ABC ), we have a bearish pattern emerging with the formation of a descending triangle (red shaded area). The intriguing parts are the well defined lines of support and resistance for this continuation (sideways) movement. We have two nearly identical highs which form our line of resistance (red horizontal), and six lows which form our line of support (green horizontal).
Two possibilities. Watch the candles as they approach the upper trend line of the descending triangle.
1. It it breaks through the line of support (A), look for the bearish trend to continuing and down we go.
2. If we test the support line for a seventh time (near point A), and the bears cannot break through, and additionally we have smaller candles (losing momentum) as it approaches, we might bounce back up and through the upper trend line (top line of triangle). If this happens, we'll need to watch our horizontal line of resistance (red) and see how it tests there again, and re-evaluate.
I'm not seeing a clearly defined entry point for going long, or shorting. Thus, I will wait until we have a clearer picture, before choosing my entry point.