Looking at BTCUSD chart on a higher time frame(daily time frame).
A huge bearish pennant flag pattern spotted on the one day time frame, A bullish/bearish pennant is almost identical to a symmetrical triangle(looking at the flag itself), for a proper breakout to valid , we wait until three valleys are formed( currently at the second valley support). The pole of the bearish pennant flag make the pattern more valid, as it is used to measured the move down target. Prices move between two converging trendlines.
The flagpole which leads to the pennant should be unusually steep and last several days.
Volume trend downward 89% of the time and Breakout upward 57% of the time. As the chart is clear with visible white space in between the flag, it is called LOOSE PENNANT FLAG PATTERN.
The volume which has reduced plays an important part in the breakout.
This pattern will be valid only when price breakout downward and closes below the flag.
VERDICT:
SELL/SHORT: $3388
BUY: $3226.6 down to $2006
STOP LOSS:$3869
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
A huge bearish pennant flag pattern spotted on the one day time frame, A bullish/bearish pennant is almost identical to a symmetrical triangle(looking at the flag itself), for a proper breakout to valid , we wait until three valleys are formed( currently at the second valley support). The pole of the bearish pennant flag make the pattern more valid, as it is used to measured the move down target. Prices move between two converging trendlines.
The flagpole which leads to the pennant should be unusually steep and last several days.
Volume trend downward 89% of the time and Breakout upward 57% of the time. As the chart is clear with visible white space in between the flag, it is called LOOSE PENNANT FLAG PATTERN.
The volume which has reduced plays an important part in the breakout.
This pattern will be valid only when price breakout downward and closes below the flag.
VERDICT:
SELL/SHORT: $3388
BUY: $3226.6 down to $2006
STOP LOSS:$3869
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.