Shankt
Long

BTC Reversal-- Descending Broadening Wedge

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
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8
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The BTC bottom looks to be in. Price action is currently in a Descending Broadening Wedge pattern.

Target is 2800 for a topside breakout.
Comment: The target I posted initially is not correct. Completion of the pattern with an upside breakout should land the price at 2650.

Thanks to @sifeij for pointing out my error.

Happy trading!
Trade closed: target reached: Target reached.

Lots of momentum now and starting to form a trade-able trend. May publish another idea on this as things develop.
What is the reason for 2800?
Reply
Shankt sifeij
@sifeij, Topside breakout target is 79% of the difference between highest peak and lowest valley for this pattern as detailed here: http://thepatternsite.com/dbw.html
Reply
sifeij Shankt
@Shankt, Interesting. Thank you for the information.
Reply
sifeij Shankt
@Shankt, It actually says: "Breakout - The breakout direction is upward 79% of the time."
This does not mean what you meant though.
Reply
Shankt sifeij
@sifeij, Actually, find the following statement in a table under the section "Descending Broadening Wedge Trading Tips":
Measure rule:
For upward breakouts, use the highest peak (A) in the chart pattern as the target. For downward breakouts, compute the difference between the highest peak (A) and the lowest valley B in the chart pattern to get the height. Multiply the height by the above "percentage meeting price target" and then subtract it from the lowest valley (B) to get a price target.

From this is drawn the price target.
Reply
Shankt Shankt
@sifeij, as I re-read this, I realize my target is wrong-- it should be the level of the highest peak in the pattern.
Reply
sifeij Shankt
:thumb:
Thank you.
No matter what, that is a nice discovery of chart pattern. I have not heard of it before. Thank you.
Reply
sifeij Shankt
@Shankt, You know ETHUSD might also qualify for descending wedge as you described :) Wait for you to do another chart!
Reply
Shankt sifeij
@sifeij, I can't argue your point. Maybe you could draw it up and publish your first!

Cheers!
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