The usual events took place: saw a pattern, researched it and made a chart about findings: it seems Bitcoin on the daily time frame could be displaying a bullish pennant.
What is a bullish pennant?
A bullish pennants occur just after a sharp rise in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows. The uptrend then continues with another similar-sized rise in price.
www.babypips.com/learn/forex/pennants
Notes on the Assumed Bullish Pennant on the Daily Chart
+ According to most sources, the buying signal is IF the price breaks upwards out of the pennant, but the "safest" way is to wait until after the price has exceeded the previous high price within the pennant and then buy - see dotted line.
+ The estimated price rise is the same height of the flagpole, however there are two areas of resistance that seem clear to me so maybe taking profit at both these points is a wise idea.
If I've missed any key information, made any errors or if this in fact isn't even a bullish pennant, feel very free to correct and teach me.
Enjoy your weekends. Cheers!
What is a bullish pennant?
A bullish pennants occur just after a sharp rise in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows. The uptrend then continues with another similar-sized rise in price.
www.babypips.com/learn/forex/pennants
Notes on the Assumed Bullish Pennant on the Daily Chart
+ According to most sources, the buying signal is IF the price breaks upwards out of the pennant, but the "safest" way is to wait until after the price has exceeded the previous high price within the pennant and then buy - see dotted line.
+ The estimated price rise is the same height of the flagpole, however there are two areas of resistance that seem clear to me so maybe taking profit at both these points is a wise idea.
If I've missed any key information, made any errors or if this in fact isn't even a bullish pennant, feel very free to correct and teach me.
Enjoy your weekends. Cheers!
Comment:
So it seems it IS a good idea for the price to break above the highest price inside pennant. It clearly has too much overhead resistance.
Comment:
If we look on the 4 hour chart, we can see selling volume hasn't decreased so another move up looked unlikely. Now it seems to be moving down.
Comment:
Now back on track with this bullish pennant trade. Approaching the point de resistance. If this daily candle closes above the dotted line, it's an official buy signal: