I've studied the bullish hook reversals which occur at the bottom of a downtrend for Ethereum to determine the highest probable outcome of a new local maximum. The data I used was an Ethereum daily chart spanning from August 8th 2016 to March 29, 2018. The two variables I considered were duration of time for the downtrend to reach a reversal and the Fibonacci retracement of that reversal.
I filtered the data by Fibonacci >=0.382 and duration >= 7 days to determine the highest probable reversal height as a function of time and frequency of recurring events. The results are as follows: The reversal approached the 0.382 (41%), 0.786 (32%), 0.618 (16%), 2.618 (7%), and 1.618 (4%).
Unfiltered data suggests the reversal will approach the 0.618 (42%), 0.786 (37%), 1.618 (7%), 4.236 (14%).
This is not financial advice to buy or sell, this is for educational purposes.
I filtered the data by Fibonacci >=0.382 and duration >= 7 days to determine the highest probable reversal height as a function of time and frequency of recurring events. The results are as follows: The reversal approached the 0.382 (41%), 0.786 (32%), 0.618 (16%), 2.618 (7%), and 1.618 (4%).
Unfiltered data suggests the reversal will approach the 0.618 (42%), 0.786 (37%), 1.618 (7%), 4.236 (14%).
This is not financial advice to buy or sell, this is for educational purposes.
Comment:
As I said last week this pattern has happened numerous times...yet again Ethereum has retraced to the 0.786 after oscillating between the 0.382 and trough. Profits have been taken and I anticipate a reversal towards $400.
*There is low probability (~16%) Ethereum will continue to ascend towards the 1.618 or above.
*There is low probability (~16%) Ethereum will continue to ascend towards the 1.618 or above.
With that being said I filtered the most recent data by >= 7 days.
The base rates are as follows: 0.382 (32%), 0.786(32%), 0.618 (16%), 2.618(11%), 0.236 (5%), 1.618 (5%). The base rates were calculated by dividing the frequency of recurring reversal heights by the total amount of data points. 19 data points were used all with durations of time >= 7 days.
This is not financial advice to buy or sell, this is for educational purposes.