This_Guhy

Nested bullishness: Wedge in triangle in a Cup and Handle

Long
COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Much this should be no surprise to anyone. The cup and handle has been the talk of the crypto town for a while now and you may or may not believe it will perform, but the believe that we are in a bullish continuation pattern exist.

  • The handle appears to be another bullish continuation pattern, an ascending triangle .
  • The triangle has a falling wedge which is a reversal pattern. This reversal pattern is backed up by bullish divergence on the RSI and we are at the base of the bollinger band .
  • I have shown another example from November of a time we saw the exact same set up and got almost 10% gains.
  • Now all of this upside potential occurs after we have the buy signal on the has ribbon. This signal went out all over cryptoverse when it flashed.

Every single one of these structures give you a different target, entry strategy depending on how aggressive you want to be and a stop strategy depending on how aggressive you want to be. The targets on the main chart don't even consider that this is a continuation pattern of a flag pole.


I created this chart because BTC is the benchmark for all of crypto. My biases is crpyto will pamp while bitcoin performs to the flagpole target. From there we will probably retrace and I'll look at buying dips. I am betting ethusd will overperform and since it is a collateral currency on my exchange my gains from margin trading to into there. XRP gives me the x5 and a high percent change so I will be long XRPUSD. I'll look for topping ETH, BTC , and XRP to help me make my decision on when to close.

I have linked some posts with some good calls. A lot of formation have strong predictive utility and you just need the patience to have them perform and that can take a while. The Cup and Handle is one of the most reliable chart patterns according to Bulkowski, and he basically wrote the book on TA. Remember, there is a lot of nested bullishness and will patience targets should get hit but that doesn't mean you abandon stop management or get reckless with your entries, especially with margin and leverage.

Find a system that lets your winners run. If your chart formation busts don't hold like a buster. This is time for fundamentals.
Comment: I say... that ascending triangle support has really done its job. there is a potential inverse head and shoulders developing and if the right shoulder has the same-ish period it should be performing in about eight to nine hours. From there it is a short distance to see if the ascending triangle performs or busts.


And I repeat this because it was a painful lesson for me to learn: triangle are some of the easiest formations to see but the hardest to trade due to how often they bust or underperform. That includes this Ascending Triangle. I am bullish on it because of the total set up but I would never recommend someone go crazy with leverage because a retest of the neckline will leave you beggard if you don't do it right.
Comment: We are out of the triangle I drew and there is the desire just to make a larger triangle but that isn't the the best thing to do right now. Below is the chart I use when I need to both steady my hands and cut my losses at the same time. Price action is leaning hard on both the 4H and 4h MTF VSTOPs. If this key level is bought aggressively by the bulls then the bounce will be great. If a break is followed through with aggressive selling then the downtrend will be deep and severe.

Gut check time.

Comment: Here is a closer shot of the chart.