Hey!
Please follow this technical analysis step-by-step and hopefully You get better at trading! Appreciate it and appreciate my hard work by hitting the LIKE button, because someone asks money for this but I only ask a Like ;)
Because I start to make my technical analysis on Coinbase than I thought I make this a bit educational post and hopefully You find something useful from here. How I start my technical analysis (TA.) when I take a clean chart? How to find strong price levels? How to draw the trendlines? Which is a counter trendline and why this has to be on the chart and etc.
Let's start with the support and resistance levels. Firstly, I start to draw them on the monthly chart. I take recent monthly lows and highs near the current price because the price has a history and it has a tendency to repeat some of the action on the same price levels. (Take 4-6 months back and mark those monthly lows&highs)
So, if these levels are on the chart then now we could start to find some important levels inside the monthly price action. Those levels we have to discover on the weekly or on the daily timeframe.
As You see on the image below we have a super-strong support level on the weekly chart (blue line) at $6,151.
The price has rejected from the same area since 11. June 10(!!) times. Don't come to say to me that price doesn't have a history and it doesn't repeat itself! (I have seen some "geniuses" here) Today was almost 11. attempt to break below the blue line. If we are drawn this on the chart, then we now know that we definitely don't want to see a weekly candle close below the blue line. Because this could mean disaster for BTC. A close below the mentioned level would be confirmed lower low and probably the price starts to approach the new lower areas after the close below the $6,151!
A nearest strong resistance area on the weekly chart is at $6,464:
As You see then this has been historically a great resistance level and also it has been a decent support level. Now we have the major support levels on the chart but we still need to dig into the deeper price action to get more precise price action from lower time frames.
On the daily timeframe, I didn't found anything remarkable but on the 4H chart, there has a pretty strong price level at $6,246 (orange line)!
Multiple rejections from downwards and upwards. So, if the price reaches there You can be almost certain that it gets a rejection or if the bulls are massively strong then at least the price stops there for a while. So, whats the short opportunities there if the price makes a pullback to this area!
Now when we know all those strong price levels above and below the current price we have to mark also other criteria which work as a support and resistance levels, those are the round numbers and higher timeframe EMA levels!
On the image above You can see that there is the weekly EMA100 below the current price and the daily EMA's 100&200 above the current price and the round numbers (red line) which should act as S&R levels $6,500 and $6,000. If You think that the chart comes a bit messy then don't worry, I just want to that You follow my steps and this is all for You. You can delete some of the non-important levels which are further than the current price but currently, let it be.
So, we have all horizontal price levels on the chart, all they should act in some point as S&R levels, they aren't there just for fun and hopefully You have followed my steps and You know that!
Now we should identify the trend and start to draw some minor trendlines and some major trendlines. Minor trendlines are pulled from the shorter timeframes and majors from higher timeframes. Let's start from majors on the weekly chart and what we could find from there:
There are two major trendlines with precise touches and rejections after the touch.
Let's start from the upper trendline, to draw a trendline then we have to have two touching points and currently, upper trendline consist of two touching points drawn precisely from the wicks (always draw the trendline - almost always - from the wick to wick or from the body to body NEVER start from the wick and end on the body, it is a common and ugly mistake)! The chart makes lower highs and this means the down pressure is bigger and bears dominate this market!
Now the bottom trendline: it has more touches than upper trendline and we can count this as a very strong trendline because we have several rejections from it and it has worked nicely as a support.
Lower trendline makes every time higher low and those two trendlines together make a chart pattern called Triangle and we are pretty much into the Triangle tip area which means that we could see an important move - not just a move, big move to guide us to the mid-term trend - within three weeks. A break and close below the bottom trendline will guide us to the lower prices and a break above the upper trendline will guide us to the Christmas rally!
Currently, there are no significant minor trendlines besides the blue line (on the 4H chart) on the image below:
The BTC' price breaks below the blue trendline in November 13. It got a confirmation from the 4H candle close below it and the next 'leg' down has happened today. Currently, we have a confirmation that the short-term uptrend could be over because of the confirmed lower low candle close on the 4H chart.
On the last picture, we could see a possible bounce point (the green box). There are previously pulled:
1. The major counter trendline/the triangle bottom trendline.
2. Weekly strong support area (Historically 11 rejections)
3. September and July monthly lows.
Those three makes a pretty strong crossing area at the $6,106-$6,151 and crossing areas are always strongest especially if they consist at strong levels!
And obviously, the first target would be the well-known orange resistance line which is pulled on the 4H chart!
The counter trendline means - if we have a downtrend on the bigger picture, bigger lower highs and etc. (currently down) then the counter trendline is opposite for bigger trend. BUT if the counter trendline breaks then it would be a good opportunity to SELL because "trend is your friend" and the overall trend is down.
I would like to end this here because we have found a pretty strong bounce area and I used only simple TA. tactic. KISS (keep it simple, stupid) Here was the basic TA. principles and hopefully, You got something useful from here!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really really appreciate it!
Have a nice day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Please follow this technical analysis step-by-step and hopefully You get better at trading! Appreciate it and appreciate my hard work by hitting the LIKE button, because someone asks money for this but I only ask a Like ;)
Because I start to make my technical analysis on Coinbase than I thought I make this a bit educational post and hopefully You find something useful from here. How I start my technical analysis (TA.) when I take a clean chart? How to find strong price levels? How to draw the trendlines? Which is a counter trendline and why this has to be on the chart and etc.
Let's start with the support and resistance levels. Firstly, I start to draw them on the monthly chart. I take recent monthly lows and highs near the current price because the price has a history and it has a tendency to repeat some of the action on the same price levels. (Take 4-6 months back and mark those monthly lows&highs)
As You see on the image below we have a super-strong support level on the weekly chart (blue line) at $6,151.
A nearest strong resistance area on the weekly chart is at $6,464:
On the daily timeframe, I didn't found anything remarkable but on the 4H chart, there has a pretty strong price level at $6,246 (orange line)!
Now when we know all those strong price levels above and below the current price we have to mark also other criteria which work as a support and resistance levels, those are the round numbers and higher timeframe EMA levels!
So, we have all horizontal price levels on the chart, all they should act in some point as S&R levels, they aren't there just for fun and hopefully You have followed my steps and You know that!
Now we should identify the trend and start to draw some minor trendlines and some major trendlines. Minor trendlines are pulled from the shorter timeframes and majors from higher timeframes. Let's start from majors on the weekly chart and what we could find from there:
Let's start from the upper trendline, to draw a trendline then we have to have two touching points and currently, upper trendline consist of two touching points drawn precisely from the wicks (always draw the trendline - almost always - from the wick to wick or from the body to body NEVER start from the wick and end on the body, it is a common and ugly mistake)! The chart makes lower highs and this means the down pressure is bigger and bears dominate this market!
Now the bottom trendline: it has more touches than upper trendline and we can count this as a very strong trendline because we have several rejections from it and it has worked nicely as a support.
Lower trendline makes every time higher low and those two trendlines together make a chart pattern called Triangle and we are pretty much into the Triangle tip area which means that we could see an important move - not just a move, big move to guide us to the mid-term trend - within three weeks. A break and close below the bottom trendline will guide us to the lower prices and a break above the upper trendline will guide us to the Christmas rally!
Currently, there are no significant minor trendlines besides the blue line (on the 4H chart) on the image below:
On the last picture, we could see a possible bounce point (the green box). There are previously pulled:
1. The major counter trendline/the triangle bottom trendline.
2. Weekly strong support area (Historically 11 rejections)
3. September and July monthly lows.
Those three makes a pretty strong crossing area at the $6,106-$6,151 and crossing areas are always strongest especially if they consist at strong levels!
And obviously, the first target would be the well-known orange resistance line which is pulled on the 4H chart!
The counter trendline means - if we have a downtrend on the bigger picture, bigger lower highs and etc. (currently down) then the counter trendline is opposite for bigger trend. BUT if the counter trendline breaks then it would be a good opportunity to SELL because "trend is your friend" and the overall trend is down.
I would like to end this here because we have found a pretty strong bounce area and I used only simple TA. tactic. KISS (keep it simple, stupid) Here was the basic TA. principles and hopefully, You got something useful from here!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really really appreciate it!
Have a nice day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Comment:
Those who are on the market, go and light some candle in the church and praythat this is a massive bear trap!
Comment:
Forget the current situation on the market!!
Take this post as educational post to make further technical analysis for your own!
All the best to You!!
Take this post as educational post to make further technical analysis for your own!
All the best to You!!
Comment:
Just a very old post but idea stays the same! "The clean area"
Comment:
Currently, we have stopped on the level which has held the price about a year ago - $5,525! Last and final touch before the last year's upwards movement was 12. November!
At the moment we don't have seen a 4H candle close below the mentioned level but this doesn't show us anything because the panic is obviously still there.
A candle close below the $5,525 will guide us to the "final" destination around $5,000.
I just can't see that they want to go much lower than $5,000. They don't want to sort out those who still believe in crypto (hopefully, they don't). If the price goes much lower than that then they just kill this, because then we don't see any new money flowing on the markets (currently, already is so tiny amount of new money flowing into the markets).
Those are just my thoughts and let's see what and when they want to go back higher because if this continues than I don't understand the concept what they want to achieve.
Please tell me, what You think about current situation!
At the moment we don't have seen a 4H candle close below the mentioned level but this doesn't show us anything because the panic is obviously still there.
I just can't see that they want to go much lower than $5,000. They don't want to sort out those who still believe in crypto (hopefully, they don't). If the price goes much lower than that then they just kill this, because then we don't see any new money flowing on the markets (currently, already is so tiny amount of new money flowing into the markets).
Those are just my thoughts and let's see what and when they want to go back higher because if this continues than I don't understand the concept what they want to achieve.
Please tell me, what You think about current situation!
Comment:
Just in case, let's prepare for another leg down.
COINBASE (left chart) bearish confirmations:
1. a candle close bleow the minor trendline (black)
2. A candle close below the blue support
3. A candle close below $5,500
BITFINEX Right chart)
1. A candle close below the previous 2018 low
2. A candle close below the curve support line (red)
COINBASE (left chart) bearish confirmations:
1. a candle close bleow the minor trendline (black)
2. A candle close below the blue support
3. A candle close below $5,500
1. A candle close below the previous 2018 low
2. A candle close below the curve support line (red)
Comment:
Currently, those levels have held us but - Just In Case!
Comment:
Break out from bear flag...another leg down might be on the way!
Comment:
Comment:
New BTC update:
If it is helpful then please leave a like and leave a comment wih your thoughts!
Have a nive day!
Have a nive day!
Wtf is going on!!??
“ A break and close below the bottom trendline will guide us to the lower prices and a break above the upper trendline will guide us to the Christmas rally!”
Definitely I didn’t mean that low!!
Amazing crypto!