When we talk about chart patterns, different traders have different rules and styles for drawing patterns. For one trader is formed, and for another trader the right or left shoulder is not so clear and he does not use this pattern for trading. It's just an example.
Let's look at the 4H timeframe. The price reached 4000.00 two times and could not break it. We got two highs and the swing low between them. It's a pattern, at least it looks like this. I can't say that it's the perfect pattern because for such one I would like to see clear swing highs and lows. But I would want to use it even it's not perfect. If you think I'm wrong, please read one more time the 1st paragraph.
As I wrote in the previous post about BTC , it will be logical if the price bounces from 4000.00 level and make a correction. It will be logical movement in the structure. Now we have the reversal pattern from the resistance and divergence. Yes, the must be confirmed by breaking below the signal level = the local swing low. But I think it's just the question of time.
confirms the price reversal. supports the downward movement. DMI is and confirms the strong trend, but line falls and it tells that bulls become weaker. The market is going to move lower and these signals confirm it.
This post is not about shorting BTC . It's just the information for those who hold buy trades with close targets. Maybe it's time to think about fixing profit? For medium term and long term traders and investors, this possible correction must be used only for adding more trade to their active positions.
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As usual, your comments, opinions are welcome in comments!
The update will be published as soon as there will be more signals from the market.
Good Job and thanks for the efforts of sharing :)