Descending Triangle [MAJOR SUPPORT LEVELS TO LOOK FOR]
Welcome to another one of my technical analysis.
I have been playing DOT for quite some time now and will remain positive in the long term.
I know it's very messy so I will explain everything going on here.
In this 4-H Chart, we can see a descending triangle, however, not a very strong one in my opinion. Nevertheless, it is there and so I am sharing it.
This could indicate a potential correction and the price may retest the 0.50 fibbonaci retracement level at $37.715
The descending triangle is, however, very small if you look at the 1-D Chart. So it shouldn't matter for any long-term holders.
I have identified two key support levels.
The red one is based on price movement and multiple confirmations.
The green one which I labeled major support is based on that specific area I highlighted with my white rectangle. I made that line over a week ago but it is still possible to act as a major support level however, I wouldn't place a stop-loss that low.
Moving on, we have the regression trend which is the main indicator that I am basing my strategy on.
Right now, the price has recently tested the bottom line and bounced back up, now the price is near the median line again.
The most projecting tops and bottoms are over and I think that the price will revert to move along the median line again.
My strategy:
Entry : $39 - $40
Take Profit : $43.1 / Trailing Stop
Stop Loss : $36.6 - $37.4
Risk/Reward - 1.2
This is not financial advice, this is just me having fun and messing around!
I have been playing DOT for quite some time now and will remain positive in the long term.
I know it's very messy so I will explain everything going on here.
In this 4-H Chart, we can see a descending triangle, however, not a very strong one in my opinion. Nevertheless, it is there and so I am sharing it.
This could indicate a potential correction and the price may retest the 0.50 fibbonaci retracement level at $37.715
The descending triangle is, however, very small if you look at the 1-D Chart. So it shouldn't matter for any long-term holders.
I have identified two key support levels.
The red one is based on price movement and multiple confirmations.
The green one which I labeled major support is based on that specific area I highlighted with my white rectangle. I made that line over a week ago but it is still possible to act as a major support level however, I wouldn't place a stop-loss that low.
Moving on, we have the regression trend which is the main indicator that I am basing my strategy on.
Right now, the price has recently tested the bottom line and bounced back up, now the price is near the median line again.
The most projecting tops and bottoms are over and I think that the price will revert to move along the median line again.
My strategy:
Entry : $39 - $40
Take Profit : $43.1 / Trailing Stop
Stop Loss : $36.6 - $37.4
Risk/Reward - 1.2
This is not financial advice, this is just me having fun and messing around!
Comment:
DOT has undergone a major correction and wicked past my major support level but immediately rebounded to somewhere along the key support level