I want to point out a small indication which happened end of December and which is currently on the market. The candles on the have marked as green arrows below the candle.
The first one has happened 27. & 28. December and the second one has happened on 13. & 14. January.
Those marked candles are almost identical having only the size difference. Both have a fakeout which happened on the strong area and after that, the price makes a retest, moves sideways and here comes the interesting part of that. If this plays itself through the end equally, then we could see a movement upwards on the next days.
The current platform has worked nicely as a strong at $3,575 and now we have a new and confirmed counter trendline. The counter trendline is a very good trade indication IF it breaks. Currently, the major trend is down and if the counter trendline (major trend is down, a small counter-trend is upwards) break then it would be a good sell signal, this scenario is just in case. If the counter trendline breaks then we have also other price action criteria broken as:
- strong area $3,575, below it would be
- recently nicely worked $3,500 , if it breaks it would be another confirmation and the sell trade would be triggered after those criteria have collapsed.
Ok, talking about counter we ended up on the sell setup, but keep in mind!!
So, back into the current which will play out our nicely:
- We have a strong $3,575
- We have the major counter trendline AND the strong area crossing point below the current price which makes this much stronger
- In this area, we have also the FIB retracement level 62% which will guide us to the wave 3. if we start to count those waves from the bottom.
- We have identical ABC waves down from the last top to the $3,500.
All those criteria matching each other in the current bounce area which will be a sign that we could see a movement upwards!
Please, do not forget to support my idea post by hitting the "LIKE button!
Thank You very much!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
We have the move already and I make an update about resistances!
It is a breakout cofnirmation if You remember my previous post:
Good signs to continue to go upwards, next bullish confirmation is the Daily candle close above those strong areas!
Altcoins are supporting current move because they are also on the plus side!
Have a nice weekend and if You like this idea then hit the “LIKE”
The mentioned chart pattern has been on my earlier post and I have mentioned that the first obstacle would be the IHS neckline.
Currently, the price has found resistance from the neckline trendline. This is a good sign that the price didn't get a big rejection from it, the price stays on the area and to get next short-term confirmation is the neckline break which will guide us to the target (shown on the image)
If the price doesn't go higher than the neckline today, then today's candle close on the current level (above $3,690) will be also a bullish sign for the next days, so, watch those close confirmations.
To hold bullish momentum then the price has to stay above the $3,690 on every higher timeframes (1H and higher)
At least 4H candle close below 3,500 will trigger the next selling rally!
I look this situation as a viewer, because this area is almost pointless to make TA.s
Take a second and support my idea post by clicking the “LIKE” button!
You are welcome, I’ll try my best ;)
About MA - which timeframe?!
Overall I don't think it is an indication and individually it doesn't play significant role!
All the best!