Hi guys and gals hope you are doing good, In my previous article that I posted on 20 Dec 2019 I depicted that since Sep 16 2019 the world’s 7th ranked cryptocurrency EOS was moving within a and and that time it was hitting the support of the for 3rd time and we had recent support at $2.35.
With hitting support of the price action also went closer to lower bands of and repelled from there.
and with this move the price action had completed a pattern therefore I predicted that the price action can move up to 70% from this level.
And at the end of December 2019 the price action took a powerful and produced more than 121% profit that was really a big gain.
100 resistance of week chart:
After this powerful move there was a strong resistance of 100 ahead on weekly chart. Therefore we can see that while hitting at the resistance of 100 the price action of EOS was also hitting at the upper band of and in very next candle the moving average convergence divergence ( ) indicator also started turning and the also gave bear cross from over bought zone and as result the priceline dropped around 45% down.
Making higher lows and a strong support:
Now let's move to more long-term monthly chart then it can be clearly examined that the price action of EOS is making higher lows the first low we had on October 2017 after that we have another low on December 2018 and the most recent low was in November 2019 this is a positive signal. And with the formation of higher lows we can see that the priceline of EOS has found a strong support at $2.16.
Harmonic move with continuity:
On long term monthly chart it can be also clearly seen that EOS is forming with continuation. The price action formed the pattern which was started on October 2017 and completed on December 2018. And from the potential reversal zone of this the priceline took a powerful and entered in the from 0.382 to 0.786 of C to D leg. After the formation of this pattern the EOS formed another with its . This time we can see that the priceline of EOS has formed a .
Now let's dig this pattern deeper to see how perfect this pattern is formed:
The initial leg was started on December 2018 and ended on May 2019 then the price action is retraced between 0.618 to 0.786 Fibonacci to complete the A to B leg of this pattern after this retracement the A to B leg is completed. The C leg is projected between 0.382 to 0.886 of A to B leg and now it is again retraced between 0.618 to 0.786 area and here the price line of EOS is again entered in another potential reversal zone and ready for other powerful move.
Realistic buying and sell range as per Fibonacci sequence:
As per Fibonacci sequence the potential reversal zone and potential pull back or potential sell zone can be as below.
Buy between: $4.26 to $3.06
Sell between: $5.20 to $7.45
It means that realistically as per Fibonacci sequence this pattern can produce up to 143% profit but once the price line will cross up the 0.786 of A to D leg then EOS can turn more .
Everybody can have different stop strategies but in my point of view if you are trading on moves then we can use potential reversal zone as our stop loss if the complete priceline would be closed below this PRZ level then we can assume that the stop loss has been triggered.