Was playing around with lines this morning. Noticed that the previous down, reversal and run up started almost exactly the same one as the current one:
1) Started on a downtrend from a double top
2) Confirmed top with a third lower bottom (or left shoulder).
3) Dip and created a heavy gap (candle wick) at the bottom.
4) Went down a bit more before confirming a double bottom, signaling reversal.
5) Started going up and hit the top of the downtrend channel.
6) Broke through and gained 50% from bottom, then Fibonacci correction to exactly 50%.
7) Second run up to the top.
Right now it is playing out almost exactly like the previous one and we are somewhere between 5) and 6), the only difference is this time we on 4) we have an ascending double bottom, instead of a flat one, which adds to the bullish sentiment. HOWEVER BE CAREFUL, there is still a risk we will bounce to the green trend line (about 33k), so be careful depending on how it reacts to the current small down trend channel. This is the only pattern we have yet to imitate this time around.
If you want more details it was covered in my serious BAT#9.
I am an amateur who is trying to learn and improve. This is not financial advice, trade at your own risk and within your capacity of understanding.
1) Started on a downtrend from a double top
2) Confirmed top with a third lower bottom (or left shoulder).
3) Dip and created a heavy gap (candle wick) at the bottom.
4) Went down a bit more before confirming a double bottom, signaling reversal.
5) Started going up and hit the top of the downtrend channel.
6) Broke through and gained 50% from bottom, then Fibonacci correction to exactly 50%.
7) Second run up to the top.
Right now it is playing out almost exactly like the previous one and we are somewhere between 5) and 6), the only difference is this time we on 4) we have an ascending double bottom, instead of a flat one, which adds to the bullish sentiment. HOWEVER BE CAREFUL, there is still a risk we will bounce to the green trend line (about 33k), so be careful depending on how it reacts to the current small down trend channel. This is the only pattern we have yet to imitate this time around.
If you want more details it was covered in my serious BAT#9.
I am an amateur who is trying to learn and improve. This is not financial advice, trade at your own risk and within your capacity of understanding.
Comment:
Correction: 2) Is right shoulder, not left one.