Hello traders!
BNB was bearish since Nov 2021 but now the market is collecting some strength to pick up.
The formation of BNB is completed and now it's at the bottom of a rise.
We can see an inverted 'J' pattern after a breakout. This is a pullback pattern. It forms below support so that market can pull itself.
Why does BNB form a channel after an Inverted 'J'.?
You must understand one thing that every pattern has some kind of strength and it helps the market to react and every pattern has limited energy. After a certain movement, it loses its energy.
Most of the patterns have 1:2 energy means they can't help the coin to move more than that and after that market forms another pattern for the next move. And if there are two pullback patterns then we can see 1:3-1:5 move in a single impulse.
Correction is not a pullback pattern but the pattern after a correction is a pullback pattern. So we have 2 strong pullback patterns and now we can expect a strong rise from BNB.
Now let's talk about the Doji candle.
I was always taught and learned that if there is a Doji wick at support or trendline then we will see a rise from there and everyone teaches it like that and that's wrong, it does not work in that way, when I was searching the truth I figured out that there is 25% chance that market will rise and 75% chance that market will continue the drop.
So why are we buying it now?
Only because we have multiple pullback patterns and also Doji candle which is just one more bonus point.
If you like my analysis then please click the like button and follow to stay connected
BNB was bearish since Nov 2021 but now the market is collecting some strength to pick up.
The formation of BNB is completed and now it's at the bottom of a rise.
We can see an inverted 'J' pattern after a breakout. This is a pullback pattern. It forms below support so that market can pull itself.
Why does BNB form a channel after an Inverted 'J'.?
You must understand one thing that every pattern has some kind of strength and it helps the market to react and every pattern has limited energy. After a certain movement, it loses its energy.
Most of the patterns have 1:2 energy means they can't help the coin to move more than that and after that market forms another pattern for the next move. And if there are two pullback patterns then we can see 1:3-1:5 move in a single impulse.
Correction is not a pullback pattern but the pattern after a correction is a pullback pattern. So we have 2 strong pullback patterns and now we can expect a strong rise from BNB.
Now let's talk about the Doji candle.
I was always taught and learned that if there is a Doji wick at support or trendline then we will see a rise from there and everyone teaches it like that and that's wrong, it does not work in that way, when I was searching the truth I figured out that there is 25% chance that market will rise and 75% chance that market will continue the drop.
So why are we buying it now?
Only because we have multiple pullback patterns and also Doji candle which is just one more bonus point.
If you like my analysis then please click the like button and follow to stay connected