Hi Everyone
A comprehensive analysis on a few coins which show similar consolidation patterns: DOGE Coin, SHIBA INU, Ethereum Classic and XRP.
In these coins, we can see a sort of triangular consolidation which usually leads to a parabolic breakout after some time of consolidating on the support line (bottom of the triangle) and sometimes even breaking just underneath before making the parabolic stride.
The timeframe of the consolidation is hard to predict, but when looking at such an obvious patter one key concept comes to mind - to minimize risk, accumulate during times of consolidation. The truth is, no one is able to consecutively correctly call the tops and bottoms. However, your probability of success is much higher if you buy during a consolidation phase as opposed to trying to catch a moving train (buying during a rally).
Two examples of a break under support before another parabolic run:
An example of consolidation phase:
An example of consolidation with 3 possible outcomes: the turquoise line represents a clear reversal to a bull phase, the dark blue represents a clear move into a bear market and the red represents what I see to be the most probable - a retrace until Bitcoin indicates a reversal. From this point, the altcoin markets also reverse from consolidation into bull markets. The dark blue is generally the most improbable because consolidation = accumulation. HOWEVER, since this is a meme coin, expect the unexpected.
Another obvious triangular consolidation pattern:
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Follow here for daily updates and check out our channels for more content.
Best Regards
Ev
A comprehensive analysis on a few coins which show similar consolidation patterns: DOGE Coin, SHIBA INU, Ethereum Classic and XRP.
In these coins, we can see a sort of triangular consolidation which usually leads to a parabolic breakout after some time of consolidating on the support line (bottom of the triangle) and sometimes even breaking just underneath before making the parabolic stride.
The timeframe of the consolidation is hard to predict, but when looking at such an obvious patter one key concept comes to mind - to minimize risk, accumulate during times of consolidation. The truth is, no one is able to consecutively correctly call the tops and bottoms. However, your probability of success is much higher if you buy during a consolidation phase as opposed to trying to catch a moving train (buying during a rally).
Two examples of a break under support before another parabolic run:
An example of consolidation phase:
An example of consolidation with 3 possible outcomes: the turquoise line represents a clear reversal to a bull phase, the dark blue represents a clear move into a bear market and the red represents what I see to be the most probable - a retrace until Bitcoin indicates a reversal. From this point, the altcoin markets also reverse from consolidation into bull markets. The dark blue is generally the most improbable because consolidation = accumulation. HOWEVER, since this is a meme coin, expect the unexpected.
Another obvious triangular consolidation pattern:
___________________________________
Follow here for daily updates and check out our channels for more content.
Best Regards
Ev
