It's time for an update! Things were going pretty well in the past days.
The price did some easily predictable moves with the help of Trendlines, Support and Resistance.
Beside one thing - yesterdays Fake Breakout (Yellow Box).
The price touched our Resistance Zone at 8800.00 first and went right back to our Range (Purple Box). Please see my recent ideas to get an idea of what exactly was going on.
This is a dangerous moment, especially for someone who is mostly trading short-term trends, like me.
Potential buyers get tricked into a breakout. Most of the high leveraged short positions get liquidated (money for the market makers)
during this quick run up. The following immediate sell pressure with much higher volume is our first signal for a change in trend.
The bulls were not strong enough to break the Resistance Zone. Too many sellers entered the market.
The Relative Strength Index (RSI) is printing a Bearish Divergence (Red Dotted Lines). This basically means that the RSI disagrees
with the current price movement of the Candlesticks. People are selling their positions while the price is going mostly sideways or is moving in a tight range. This view on the Candlesticks will trick some people into buying.
The RSI is giving us a clearer view of the current trend.
The price is currently sitting at the EMA 50 while the price was trending downwards in the past weeks. This is also a Reversing Signal, but not in our favor. It's currently neutral, but moving above the EMA 50 can also mean that many potential buyers are watching the price action. A strong candle up will many people put their buy-orders on the way up. The same thing happened at the Fake Breakout.
A second attempt from the bulls to break our Resistance Zone at 8800.00 might be successful.
This is not the right time to take a position. As always, be patient and wait for the market to give you clear signals.
My tendency is a big move to our Support Zone (Blue Line). But the next good trading opportunity is just a few hours away.
I will update this chart accordingly!
THANKS! to @monetae_anon for kickstaring my Patreon
Leave a thumbs up if you like this idea and Follow me for more updates!
Disclaimer:
Any opinions, chats, messages, news, research, analyses, prices, or other information contained in this Idea are provided as general market information for educational and entertainment purposes only
The price did some easily predictable moves with the help of Trendlines, Support and Resistance.
Beside one thing - yesterdays Fake Breakout (Yellow Box).
The price touched our Resistance Zone at 8800.00 first and went right back to our Range (Purple Box). Please see my recent ideas to get an idea of what exactly was going on.
This is a dangerous moment, especially for someone who is mostly trading short-term trends, like me.
Potential buyers get tricked into a breakout. Most of the high leveraged short positions get liquidated (money for the market makers)
during this quick run up. The following immediate sell pressure with much higher volume is our first signal for a change in trend.
The bulls were not strong enough to break the Resistance Zone. Too many sellers entered the market.
The Relative Strength Index (RSI) is printing a Bearish Divergence (Red Dotted Lines). This basically means that the RSI disagrees
with the current price movement of the Candlesticks. People are selling their positions while the price is going mostly sideways or is moving in a tight range. This view on the Candlesticks will trick some people into buying.
The RSI is giving us a clearer view of the current trend.
The price is currently sitting at the EMA 50 while the price was trending downwards in the past weeks. This is also a Reversing Signal, but not in our favor. It's currently neutral, but moving above the EMA 50 can also mean that many potential buyers are watching the price action. A strong candle up will many people put their buy-orders on the way up. The same thing happened at the Fake Breakout.
A second attempt from the bulls to break our Resistance Zone at 8800.00 might be successful.
This is not the right time to take a position. As always, be patient and wait for the market to give you clear signals.
My tendency is a big move to our Support Zone (Blue Line). But the next good trading opportunity is just a few hours away.
I will update this chart accordingly!
THANKS! to @monetae_anon for kickstaring my Patreon
Leave a thumbs up if you like this idea and Follow me for more updates!
Disclaimer:
Any opinions, chats, messages, news, research, analyses, prices, or other information contained in this Idea are provided as general market information for educational and entertainment purposes only
Comment:
If we get a breakout to the upside, use 8500.00 - 8600.00 as a Target (Sell)
