Dead Cat - Bounce up short - Show on EOSBTC example
Daily chart
price below MA60, then close below that low - Downtrend confirmed
when a down trend is confirmed, we call it "dead cat".
the market is not only up or down.
it's up and down, up and down. it creats so many dead cats bounce levels
all the blue S/R marked is dead cat bounce potential levels,
and the market respected it(shows in the red squared box in the chart)
- trying to bounce up for it, then failed at that resistance and continued the dead cat down trend
--
This EOSBTC was to show the MA trend + trend define trading strategy:
- use multi MAs to define big trend,
- use higher high/higher low or lower high/lower high to define the breakout and trade/enter setup
more details of MA + Trend Define trading strategy, check in the idea below:
Along the trade, we will see those higher high/higher low or lower high/lower low. it creates many S/R(support/resistance).
Many of those are "Dead Cat Bounce Up Short" levels, so, actually "Dead Cat Bounce Up Short" are part of the trend define S/R.
if it respects,
then trend continue(coz no breakout, means no trend reversal)
if it breakout,
means trend reversal(bull starts),
then it needs to breakout many other previous dead cat levels!
if not, it means the bull is not continue, so should look for exit.
Then, Enter short only when bear trend is confirmed(by MA and trend define - lower high & lower low)
--
The market will be up and down like so, it could be obvious, could be more snaking around MAs for illusions.
But, MAs + Trend define strategy can save you and help you. Coz it let you see the key!
What time frame to use?
Do your own reseach, check your coins, use different Time Frames and MAs/EMAs you like.
Find and form your own system.
Good luck!
Like my idea and quality TA?
Leave a like!
--
price below MA60, then close below that low - Downtrend confirmed
when a down trend is confirmed, we call it "dead cat".
the market is not only up or down.
it's up and down, up and down. it creats so many dead cats bounce levels
all the blue S/R marked is dead cat bounce potential levels,
and the market respected it(shows in the red squared box in the chart)
- trying to bounce up for it, then failed at that resistance and continued the dead cat down trend
--
This EOSBTC was to show the MA trend + trend define trading strategy:
- use multi MAs to define big trend,
- use higher high/higher low or lower high/lower high to define the breakout and trade/enter setup
more details of MA + Trend Define trading strategy, check in the idea below:
Along the trade, we will see those higher high/higher low or lower high/lower low. it creates many S/R(support/resistance).
Many of those are "Dead Cat Bounce Up Short" levels, so, actually "Dead Cat Bounce Up Short" are part of the trend define S/R.
then trend continue(coz no breakout, means no trend reversal)
if it breakout,
means trend reversal(bull starts),
then it needs to breakout many other previous dead cat levels!
if not, it means the bull is not continue, so should look for exit.
Then, Enter short only when bear trend is confirmed(by MA and trend define - lower high & lower low)
--
The market will be up and down like so, it could be obvious, could be more snaking around MAs for illusions.
But, MAs + Trend define strategy can save you and help you. Coz it let you see the key!
What time frame to use?
Do your own reseach, check your coins, use different Time Frames and MAs/EMAs you like.
Find and form your own system.
Good luck!
Like my idea and quality TA?
Leave a like!
--
dead cat bounce up levels of S/R
1. can be seen by previous support( the blue lines in the idea)
2. can be seen by the bounce up cat(coz sometimes it doesnt reach high enough to the previous support), like the the red lines below: