On the daily time frame, the price chart of BTCUSD will be analysed with the use of an indicator called THE BOLINGER BANDS(BB).
The BB is used to identify high probability trading entry. There are 5 main signals while using BB, they are all based on the "APPROACHING PRICE ACTION'
For the purpose of this chart we will only focus on one which is called CONSTRICTION: Decrease in (THE RED BOX)
When both bands come together not indicating a point of coming apart(as shown on the chart) this is called CONSTRICTION/ SQUEEZE/TIGHT.
When there is a constriction and price is below the RED (line between the upper band and the lower band) there is high probability that price will dump which will likely result to expansion.
Price will work along with lower band while the upper band will spread wide and move up.
The targets if the squeeze is broken to the down side are as follows:
Support 1: $9333.64
Support 2: $8792.24
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice