Following a consolidation, a break of the recent structure low invited price to revisit prior lows, as price action continues to roll down.
Predictive analysis and forecasting has defined the following probable levels of support:
1 - 438.82, moderate probability of offering support/reversal
2 - 425.37, high probability of offering support/reversal
and
3 - 384.65, low probability of offering support/reversal
A breach of 425.37 could open the floor up to a new structure low. In such case, then look for a technical double bottom at 400.00, or a rescue pattern support (Bullish Shark) at 384.65.
OVERALL:
Bears remain dominant and are likely to drive price lower. I have offered above a rating of probable support/reversal levels, which are mere suggestion, much like a rope on a fixed stick, which the concerned bull might consider to clasp while its hooves continue to sink in this quick sand. A structure low at 400.00 might help this market wring out all of the stop-losses in the field, whereas institutional influx could emerge in the 400.00/384.64 range, on the basis that fundamental news has not discredited crypto-currencies, but instead has carved out newly and expensive laws that are sure to rid of unmotivated investors, while price action is taking care to wash out all of the weak hands.
Cheers,
David Alcindor Predictive Analysis and Forecasting
If interested to receive my TradingView forecast instantly through Twitter: Simply follow me: @4xForecaster. Here is a recent forecast: tradingview.com/v/52ONNlC8/
------------------------------------- Disclaimer: - Remember to remain dubious about every and any thing I say. All comments are subjective perceptions based on unshared, proprietary and common knowledge of fundamental analysis, classic technical analysis, basic and advanced pattern trading, as well as personal research in occult market geometries, predictive analysis and quant-based forecasting, some or none of which is being shared in my trading profiles, so do your due diligence and review the disclaimer below. - Forecasts, analyses and directional opinions generated herein are for educational purposes only and are not trading recommendations. We trust that you will do your own due diligence first, then seek professional advice from a licensed professional, then enter the market at your own perils - David Alcindor - TradingView.com Alias: 4xForecaster
Comments
4xForecaster
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ADDENDUM: When I look for institutional footprints, I seek any abnormal coordination of activity near the 0.786/0.886 range, simply because there could not be a coordinated activity of retail sellers affecting price in the way institutions can. The activity profile I am looking for has two simple characteristics, one which I call Volume Type-1, which is typically an activity that takes out all stop-losses within its path, and Volume Type-2, which represents a counter-trend move within a well defined, narrow range.
This range could either be the 438/408 which I defined in the chart, or the 425/384, also defined therein, corresponding to absorption of retail positions by institutional volition, taking on intelligent position to the upside.
Another characteristic of my Volume Type 1/2 observation is that it can happen under two timely circumstances: 1) A narrow event, where both volumes are closely associated to one another, or 2) two distinct volume spikes distanced from another by narrow level of retail activity.
In the first case, one should seek a marubozu or twizzer bottom candle morphologies, while in the second case, a pinbar at the second counter-trend candle would be most characteristic.
This are not hard and fast rules, but ones that may help provide added rational layering over the forecast levels I just defined for you.
Hope this helps and does not dim the light any further than institutional traders might intent.
Cheers,
David Alcindor, MOD
grahvity
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"one should seek a marubozu or twizzer bottom candle morphologies, while in the second case, a pinbar at the second counter-trend candle would be most characteristic."
Any links you would recommend to learn more about this would be appreciated.
Thanks!
4xForecaster
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Hello @grahvity - As indicates in the text, these are observations I made over the years. The technical candles (i.e.: Marubozu, Twitter Top/Bottom, or pinbars, are names defined by price action analysists, which I use to identify these volume related events.
Besides the plethora of candle formation education out there, I would also looking into volume spread analysis, which is a whole lot more complicated than this "1-2 Punch" observation I defined above, although it has helped me identify and confirm bottom/top reversals as adjunct methods to my predictive analysis and forecasting system.
This range could either be the 438/408 which I defined in the chart, or the 425/384, also defined therein, corresponding to absorption of retail positions by institutional volition, taking on intelligent position to the upside.
Another characteristic of my Volume Type 1/2 observation is that it can happen under two timely circumstances: 1) A narrow event, where both volumes are closely associated to one another, or 2) two distinct volume spikes distanced from another by narrow level of retail activity.
In the first case, one should seek a marubozu or twizzer bottom candle morphologies, while in the second case, a pinbar at the second counter-trend candle would be most characteristic.
This are not hard and fast rules, but ones that may help provide added rational layering over the forecast levels I just defined for you.
Hope this helps and does not dim the light any further than institutional traders might intent.
Cheers,
David Alcindor, MOD