Omar_Khayyat

Current BTCUSD Price Movements - Nothing is Random

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
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On the trend lines drawn, you can see that there are multiple touches either on top of or below the trend line . If there are multiple touches on top of the line then the trend can the be referred to as "support". Falling below this trend means
Comment: Falling below this trend means that support was rejected. If the chart stays above support then it is said to be "respecting support". If the chart breaks below support it is said to be "rejecting support".
On the flip-side.
If there are multiple touches below the line then the trend can then be referred to as "resistance". If the chart falls below this is said to be "respecting resistance". If the chart breaks above resistance it is said to be "rejecting resistance".
Comment: As you can see in the first triangle, the chart forms a predictable pattern. Predictable in the sense that it either stays within the triangle and the price consolidates. The trend lines themselves are not indicative of whether or not the chart will respect or reject the mentioned patterns (whether there'll be a bullish or bearish movement) therefore, we can that the trend lines themselves offer no perspective as to whether the chart will reject or respect them. To get a feel for that, you can look at other tools and indicators like the RSI tool, but I won't go into it much today.
Comment: After the second triangle we can see a rising wedge. A rising wedge is usually a bearish pattern. So the fact the chart broke to the upside from it is quite significant. This indicates that there is strong momentum behind the BTCUSD pair.
Finally, at the third trinagle, we can the same pattern start to repeat again.

Thank you for taking the time to read this.
As I said, nothing is random.
Stay profitable.
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