So I don't usually mess with Harmonic Patterns, Wave Theory and the like... however...
In looking at the daily BTCUSD chart I uncovered a near perfect setup for an ABCD correction. Will it complete all the way? Who knows, but if we do go in this direction it is helpful to know how to calculate an entry point for a trade setup.
All the info is in the chart above, but the two key pieces of data is the WHEN and the WHERE. For this pattern to complete almost perfectly, here's the info:
When: June 14, 2018
Where: $5523.6
So again... this is not my way of joining the ultra bear club, it's my way of being prepared. TA after all is about analyzing a chart to understand where price movement has come from and to create technically plausible scenarios for where we'll go to next. This is just one possibility to be prepared for, so if we go this direction we know what price point to lookout for a bounce.
Reality is that there are many key support levels which will have to be shattered on the way down to complete this pattern. Therefore I feel it is very unlikely to complete in the required timeframe unless we have significant bad fundamental news.
We'll file this one in the back of the filing cabinet for now.
Happy trading.
In looking at the daily BTCUSD chart I uncovered a near perfect setup for an ABCD correction. Will it complete all the way? Who knows, but if we do go in this direction it is helpful to know how to calculate an entry point for a trade setup.
All the info is in the chart above, but the two key pieces of data is the WHEN and the WHERE. For this pattern to complete almost perfectly, here's the info:
When: June 14, 2018
Where: $5523.6
So again... this is not my way of joining the ultra bear club, it's my way of being prepared. TA after all is about analyzing a chart to understand where price movement has come from and to create technically plausible scenarios for where we'll go to next. This is just one possibility to be prepared for, so if we go this direction we know what price point to lookout for a bounce.
Reality is that there are many key support levels which will have to be shattered on the way down to complete this pattern. Therefore I feel it is very unlikely to complete in the required timeframe unless we have significant bad fundamental news.
We'll file this one in the back of the filing cabinet for now.
Happy trading.
Comment:
Whoa! Where are we going?! Is this going to be for real? Let's wait and see. We turned around in the middle of nowhere. Time will tell if we've found the bottom.