One of the common things I have noticed from my market observation is that it takes three attempts to breakout from a in any direction most of the time. I called this beginner technique "Third Time Lucky" and is best applied to longer term charts. New traders will find it very easy to use. The rules are simple:
1. Every third breakout attempt from a has the best odds to succeed.
2. A valid attempt is one that touches the or must be in close proximity with it.
As an example, I have applied this technique to the Bitcoin chart above.
Please LIKE and FOLLOW if you enjoy my post. Thank you.
In my previous Wyckoff chart titled "Bitcoin Analysis - Textbook Case of Wyckoff Downtrend to $4,800", I have clearly illustrated the possibility of a bearish continuation that would put Bitcoin down to $4800. This dip we are seeing now is not something "new "or "unexpected".
Given that the triangle has now been invalidated, I will post all my new updates through my Wyckoff chart. See you guys there.
Note: I would be cautious and wise to pull out of this market at this level for the time being and re-enter at lower levels. That's all for today. Happy trading everyone!
We are still trading at the bottom range of that first point (large wick). I'm not only counting the #2 you are not counting because the price range itself, I am counting it because it got close enough in the range for me to consider it the second point. The LARGEST reason I would count it is because a triple bottom reversal typically takes place between 3-5 months (if it goes past 6 months its less likely to occur). Touching the first point on 2/06/2018, we are heading into the 5th month of this on 7/6/2018. If the second point is being formed right now, it would take another 1-2 months to form the third point and we would be breaking out if it in ..August/September (not saying this can't happen). But a more precise triple bottom should occur within a 3-5 month time span. Here we have 3 points in a 5 month window, with the 3rd point now touching the lowest part, when volume reached its low and seems to be turning around. Again, I'm not saying you are wrong, I'm monitoring both outlooks for which has a higher % chance of coming to fruition.
I can't tell if these are shorts or longs! There is not much info at the CBOE page!