The price reached the up line of the ascending price channel. This zone could stop and reverse the market and we saw downward movement from 6200.00 to 5400.00 level. Also we can draw a Head & Shoulders chart pattern which gives a trend reversal signal too. This pattern will be realized as a reversal one, if the price breaks the signal line and drops below 5500.00 level. If so, we should expect downward movement to the zone between 5000.00 support level and the trend line. This zone will be good for opening long trades based on reversal signals. Alternative variant: if the price bounces from the signal line and moves upward, breaking above the right shoulder will give us a confirmation of further upward movement. We can place pending orders for buy above 6000.00 level in order to catch such price movement. Stop orders for all possible long trades must be placed below the local swing lows and the main profit target can be 6500.00 level. The part of trade volume should be left for long run.
Hi David thanks for your analysis. I think the purpose of technical analysis is to anticipate the future movement rather than guess according to which price goes where. On the daily chart you can see Macd is double crossing over and volume on the daily is decreasing. I'm looking to short any major price increases..
MichaelAbraham
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we also have a larger H&S on the daily also.
eierbear
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thanks for your good chart
i have a similar approach for correcting
1. the actual fibo38,2 % from the high of 6.195 is approx 4.200
2. the lower line from trendkanal from 16.07.2017 starting at approx 1.695 through 2.980 from 15.09.2017 is also at 4.200 approx at mid of november
3. as i said already the fibo timeline from the actual existing high has the 21 (fibo) day duration approx 17th of nov. too
3. the at that time valid pivot points has the support line S3 also approx to 4.200
pls apologize my english i am from austria
DLavrov
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@eierbear, thanks for sharing your ideas about this market )
Richy007
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BTC keeps testing the 6k resistant level, sooner or later, it has to make a decision. I see higher, then testing the ATH $6189. Add some at $6010, stop loss $5700 - target push to ATH $6200+ !
fineregex
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so a sell/short from now has a risk reward >5:1 and still you sound like all to ever do is "buying the dip" only? yet the exponential rally cant go on forever. And while slope increases it must be less likely with every more day passed
DLavrov
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@fineregex, I don't think that selling on strong bullish markets with great potential for upward movement it's a good idea. But if you want... Short term sell trades with stop orders, why not?