CryptoKujira
Long

Inverted hammer formation for BATETH on Binance, 30m

BINANCE:BATETH   Basic Attention Token / Ethereum
BATETH on Binance, 30m

1. Support trend line
2. Resistance trend line
3. RSI indicating oversold
4. Inverted hammer candlestick formation signaling possible reversal
5. Confirmation candlestick following inverted hammer to confirm trend change
6. Fibonacci levels to identify potential sell point to take profit

Watching the charts this morning for an early Christmas present, I noticed the formation of an inverted hammer (4). The inverted hammer criteria is as follows

  • Must follow a downtrend
  • Upper shadow must be at least two times as big as body
  • Lower shadow really small or non existent
  • Body located at lower end of trading range

Added trend lines (1 and 2) for most recent movement to see what the potential lines of support and resistance are.
Added RSI overlay (3) and confirmed status as potentially oversold.
Waited until the next candle formed (5) after inverted hammer , for additional confirmation of change in trend.
Added Fibonacci overlay (6) from top of most recent significant drop within my downward trend lines , to the lowest point where the inverted hammer (3) formed.
Entered my position around 101 and exited my position around around 110000, near Fibonacci level 0.786.
Will watch closely to see if this is a new upward trend, or merely a retracement within a continued downward trend.

Happy holidays!
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