Bitcoin: How patterns help you to READ the chart!
Hello dear crypto friends, hope you're doing well guys! ;) Bitcoin had a pretty solid dump in the last couple of days, and therefore it is time for a Multi-Timeframe Analysis. You can support this post by likes & commenting if you get some value! ;
Let's get is started off with the Hourly Chart: This is what I had posted in our Slack group just a couple of hours ago:
=> A beautiful Bull Flag, inside a nice V-shaped recovery, building a more complex right shoulder of an inverse Head & Shoulders, basically like a Russian Matryoshka. This is what my mentee Rob had posted:
The inverse H&S on the 1H chart shows it self as beautiful Morning Star Reversal pattern on the 4H Chart.
=> After the RSI got completely crushed up until the 4H chart, this is now a very natural reversal from the bulls.
Moving on to the Daily Chart, the 4H Morning Star Reversal turns into a bullish Hammer candle (almost, since the wicks have to be twice the body size according to textbook). But we clearly have the psychology of a Hammer, since the bulls completely reversed the bear break into a bullish close now.
On the Daily already visible, is now the beautiful tightening range we have currently ongoing between 12k and 9,5k.
On the Weekly Chart this will show off currently as a Double Top, where the bulls clearly have to hold the 'Pullback Low' in order to stay & further tighten in the Equilibrium range.
If the bulls can hold the bottom, we will eventually have the chance to tighten towards the upper resistance of 12k and break higher.
Conclusion: Patterns & Candlestick Patterns are beautiful to read, because they show human price psychology in real time. A 4H candle is nothing but the price action that has developed in those 4 hours between the market participants, just getting portrayed with a candle open & close + wicks. And if you can read this, you are clearly one step ahead of the mass. Edgy helps you in your education, don't hesitate to contact me! ;)
Edgy is providing online education only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
Let's get is started off with the Hourly Chart: This is what I had posted in our Slack group just a couple of hours ago:
=> A beautiful Bull Flag, inside a nice V-shaped recovery, building a more complex right shoulder of an inverse Head & Shoulders, basically like a Russian Matryoshka. This is what my mentee Rob had posted:
The inverse H&S on the 1H chart shows it self as beautiful Morning Star Reversal pattern on the 4H Chart.
=> After the RSI got completely crushed up until the 4H chart, this is now a very natural reversal from the bulls.
Moving on to the Daily Chart, the 4H Morning Star Reversal turns into a bullish Hammer candle (almost, since the wicks have to be twice the body size according to textbook). But we clearly have the psychology of a Hammer, since the bulls completely reversed the bear break into a bullish close now.
On the Daily already visible, is now the beautiful tightening range we have currently ongoing between 12k and 9,5k.
On the Weekly Chart this will show off currently as a Double Top, where the bulls clearly have to hold the 'Pullback Low' in order to stay & further tighten in the Equilibrium range.
If the bulls can hold the bottom, we will eventually have the chance to tighten towards the upper resistance of 12k and break higher.
Conclusion: Patterns & Candlestick Patterns are beautiful to read, because they show human price psychology in real time. A 4H candle is nothing but the price action that has developed in those 4 hours between the market participants, just getting portrayed with a candle open & close + wicks. And if you can read this, you are clearly one step ahead of the mass. Edgy helps you in your education, don't hesitate to contact me! ;)
Edgy is providing online education only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
