Yesterday I was fully expecting a bounce off of the hammer doji and horizontal support at $8,200. My stop loss was set at $8,097 and that was triggered a few hours after my post. I have gotten rekt going long over the last couple weeks, and that has forced me to zoom out on the charts and re-evaluate.
I have used a fresh chart to illustrate what I am looking at. Over the last two months we have been forming a triangle pattern. A breakout is expected to occur when the triangle is 66% completed. That has been highlighted in yellow and is set to occur on or around 5-28.
According to Technical Analysis of Stock Trends (1948) Edwards and Magee suggests that roughly 75% of triangles marked a continuation pattern. A breakout to the upside would indicate a $15,183 price target and according to Thomas Bulkowski, 66% of bullish breakouts hit the price target.
However, we are currently forming a downtrend that comes to a head on 5-27 at $7,117. That lines up within a day of the expected triangle breakout. Referring back to Thomas Bulkowski the average bearish breakout is expected to decline 17%. That would indicate a $5,907 price target.
In the next 24 hours I will be watching for horizontal and trend resistance at $8,000. If we can breakthrough that that we could get right back on track for breaking out of the triangle to the upside.
As long as we remain inside the triangle I am considering Bitcoin in a no trade zone.
Happy trading and remember that following is free!
I have used a fresh chart to illustrate what I am looking at. Over the last two months we have been forming a triangle pattern. A breakout is expected to occur when the triangle is 66% completed. That has been highlighted in yellow and is set to occur on or around 5-28.
According to Technical Analysis of Stock Trends (1948) Edwards and Magee suggests that roughly 75% of triangles marked a continuation pattern. A breakout to the upside would indicate a $15,183 price target and according to Thomas Bulkowski, 66% of bullish breakouts hit the price target.
However, we are currently forming a downtrend that comes to a head on 5-27 at $7,117. That lines up within a day of the expected triangle breakout. Referring back to Thomas Bulkowski the average bearish breakout is expected to decline 17%. That would indicate a $5,907 price target.
In the next 24 hours I will be watching for horizontal and trend resistance at $8,000. If we can breakthrough that that we could get right back on track for breaking out of the triangle to the upside.
As long as we remain inside the triangle I am considering Bitcoin in a no trade zone.
Happy trading and remember that following is free!
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