Hey all, just wanted to show you guys a chart that I rarely use but can come in super handy when long term patterns emerge: The 1 week chart. Here we can see that another much larger descending wedge has formed with enough touches on the top trendline and bottom trendline to validate them, odds are very good it will break upwards just like the last descending wedge we had on the 4hr/1day time frames. The potential upside to a bullish breakout like this is rather massive so buckle up. We should know which way this wedge is going to breakout no later than the 23rd...Just in time for my birthday! I am anticipating a very happy birthday indeed! On the way there we may experience some minor retracements at which point I will simply be buying the dips and don't plan on shorting anything unless it takes a dive in the enxt day or 2 all the way back to the eve trendline. I am only going to short fractional amounts if it starts treating the 4hr 200ma consistently as resistance. and will buy back around the 4 hr buy sell line and dipbuy anything more that dips below it. You of course choose your own path as this is not financial advice. Thanks for reading and good luck!
an adam and eve on the weekly is a good indicator we have found the bottom.
DrDovetail
⋅
@JoshuaVanier, the adam and eve here is drawn to fit the candle wicks on the 1 day chart rather than the weekly chart...although it seems as if we could get it to fit one the weekly chart as well pretty easily with some minor tweaking.
JoshuaVanier
⋅
@DrDovetail, what are your thoughts on if we bottomed, if this is a bull trap, or a legitimate break out of the downtrending structure?
DrDovetail
⋅
@JoshuaVanier, Plenty of people are still claiming they know instutional investors that said it would dip as low as 3,000. Some claim as low as $1,000. My take is the only way those price ranges are possible is if we go lower than the february 6th low of 5950. Until we do that my biasleans towards the bottom is already in. Even if we dip below this Eve bottom trendline we still ahve a chance at a normal double bottom with the february low. However fractally this adam and eve bottom is very similar to the adam and eve bottom back in september of last year that preceded our all time high, and it matches up on the 1 day volume charts on bitfinex pretty exactly as well. These things make me confident that the adam and eve bottom is likely the bottom...however even though I am siding with probability on this one...it is always wise to be prepared for the exact opposite outcome should it occur. This does not feel like a bull trap to me....yet. We should know by the apex of this weekly chart descending triangle and which way it breaks out what the outcome will be I believe.
DrDovetail
⋅
@JoshuaVanier, here are the fractals take notice of the volume between the 2 adam bottoms as well...after we had that volume spike on september 15th(the biggest of 2017) we reached our all time high exactly 3 months later on december 15th. This time we had that spike on february 7th so We could be looking really pretty by May 7th.
JoshuaVanier
⋅
@DrDovetail, Thank you for your very detailed and informative response, I will be eagerly awaiting results. I lean we are on the cusp of an impulse bull run that could make the fall '17 run up look timid, but I do not want to allow what I want to happen to cloud what the market is telling us. Imho the biggest difference is the half dozen retracements that happened in 2017 were all in the 40% range.
You have gained a follower :)
DrDovetail
⋅
@JoshuaVanier, Thanks for following...you sound pretty wise and level headed yourself so I will return the follow. Best of luck!