The market has formed a rising wedge (a bearish reversal pattern) and at the moment there is a retest of the exit from the wedge .
The problem is that the price is near the long-term downtrend line (log chart) and the resistance is enormous.
A bull harmonic pattern "Gartley" was also formed, but to complete it the market needs a leg down.
All these factors mean only one thing – correction of this overheated market is necessary! It will be absolutely healthy for further growth.
Sell: now Stop-Loss: above 11850 Take Profit #1: 10400 (rising wedge price projection) Take Profit #2: 10000 – 9500 (support zone ) Take Profit #3: 8650 (gartley price projection)
Trade active
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Slightly corrected the harmonic pattern with a new local peak. The market did not reach the stop-loss. Everything is going according to plan.
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I expect a small rebound.
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Small rebound was. I expect a possible reversal now (0.5 fib) or 10.2k (0.618 fib). If the market falls below, panic selling of all markets will begin.
So far this is a healthy correction.
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Target #1 and #2 reached
Trade closed: target reached
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I hope the market will not fall lower, because it no longer looks like a healthy correction.
how did you manage to have different longterm downtrend line than anyone else?
Well I see .. log scale.
You did not mention this .. so why do you think, that the market will be deciding its move according this log-oriented downtrend line?
At the same time .. if we crossed the real line (most traders seems to believe so) and if most traders will see the IHS completed as a confirmation - it might leave you, as a shorter, stuck very deep under the shooting price, in my opinion.
cryptojewish
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@petrreo, pointed out that this is a log line. thank you.
Stop-loss is very tight in case the market breaks the resistance. Do not dramatize :)
how did you manage to have different longterm downtrend line than anyone else?
Well I see .. log scale.
You did not mention this .. so why do you think, that the market will be deciding its move according this log-oriented downtrend line?
At the same time .. if we crossed the real line (most traders seems to believe so) and if most traders will see the IHS completed as a confirmation - it might leave you, as a shorter, stuck very deep under the shooting price, in my opinion.