Hello traders . in this idea i wanna to talk about the CAKE . so as usual i like to start with the higher time frame :
in the weekly chart , after big pump about 150% , CAKE price started to retracement to the 0.618 FIB level , and in the 0.5 FIB retracement we have weekly structure ( red support box ) .
but let's look at the daily chart for more details :
in the daily time frame , CAKE create very nice bull flag also you can call this as falling wedge pattern , but the technical target is different from the bull flag .
as you can see in the chart . price created W pattern on the weekly structure , and this is very bullish sign for the CAKE , because W pattern is bullish reversal pattern , and saw this pattern in the weekly support is very bullish ,
also the overall trend is bullish , we have 4 different bullish sign in this price area :
1_ bull flag
2_weekly support structure
3_ W pattern
4_ bullish divergence in the RSI
let's talk about the price targets :
if you consider this pattern as falling wedge ; the technical target is the top of the wedge , which is very alignment with the 0.618 fib projection level , so that area could be very strong resistance area , so make sure take some profit at 0.618 fib projection level .
but if you consider this as bull flag pattern the technical target is around 1.0 fib projection level but always be carful about the important fib levels , like 0.786 and 0.618 .
how we can trade based on this pattern ? for this we need to look at the 4H time frame :
in the 4H time frame , for opening long position , price need to 4H candle close above the 4H structure ( yellow resistance box ) because this resistance box is also in alignment by the W pattern neck line .
I hope you enjoyed this analysis.
Do not forget to like and subscribe
share my ideas with your friends , thanks for watching my ideas
in the weekly chart , after big pump about 150% , CAKE price started to retracement to the 0.618 FIB level , and in the 0.5 FIB retracement we have weekly structure ( red support box ) .
but let's look at the daily chart for more details :
in the daily time frame , CAKE create very nice bull flag also you can call this as falling wedge pattern , but the technical target is different from the bull flag .
as you can see in the chart . price created W pattern on the weekly structure , and this is very bullish sign for the CAKE , because W pattern is bullish reversal pattern , and saw this pattern in the weekly support is very bullish ,
also the overall trend is bullish , we have 4 different bullish sign in this price area :
1_ bull flag
2_weekly support structure
3_ W pattern
4_ bullish divergence in the RSI
let's talk about the price targets :
if you consider this pattern as falling wedge ; the technical target is the top of the wedge , which is very alignment with the 0.618 fib projection level , so that area could be very strong resistance area , so make sure take some profit at 0.618 fib projection level .
but if you consider this as bull flag pattern the technical target is around 1.0 fib projection level but always be carful about the important fib levels , like 0.786 and 0.618 .
how we can trade based on this pattern ? for this we need to look at the 4H time frame :
in the 4H time frame , for opening long position , price need to 4H candle close above the 4H structure ( yellow resistance box ) because this resistance box is also in alignment by the W pattern neck line .
I hope you enjoyed this analysis.
Do not forget to like and subscribe
share my ideas with your friends , thanks for watching my ideas
