FTRP is currently undergoing weekly consolidation (high, low, lower high, higher low, lower high...)
As shown on the daily, the bullish engulfing candle looks great. However, there is strong resistance the top of this pennant/triangle/equilibrium whichever you name it.
We would need to see some major surge in activity pick up here for a decisive break. *Be alert of potential false breakout*
The scenario that would be ideal for bulls is one more pullback into the trading range to cool off the oscillators, before lift off. The tighter the range gets, the more explosive the move.
Note how the resistance is the .786 fib - if we pull back I prefer to play the break of horizontal resistance rather than descending angles of a triangle - this is more reliable -
the chart is showing you 3 upper wicks on daily candles at this area - sellers are distributing their stock here. In order to get on the move, the sellers must become exhausted enough to
break through their distribution level.
Taking a position on the break of the triangle at a lower level is feasible for those who want to load up more size for bigger gains - but don't lose sight of the
.786 being major resistance and plan accordingly.
An aggressive bull strategy when facing a pullback would be to play off the .618 or .5 fib levels from the swing high to low, and then add more on a clear break of the .786 to the upside (pyramiding)
There are a few ways it can play out from there (back test some supports after break, run away etc)
With this information come up with a plan for how you will handle various scenarios and where to take profits (previous high, fib extensions, measure move of the current structure)
Disclaimer: This is NOT investment advice, I am not a financial advisor, do your own research. Adhere to proper risk management, position sizing, etc.
Like and share this post if you found it informative, and please comment below - tell me what you think!
As shown on the daily, the bullish engulfing candle looks great. However, there is strong resistance the top of this pennant/triangle/equilibrium whichever you name it.
We would need to see some major surge in activity pick up here for a decisive break. *Be alert of potential false breakout*
The scenario that would be ideal for bulls is one more pullback into the trading range to cool off the oscillators, before lift off. The tighter the range gets, the more explosive the move.
Note how the resistance is the .786 fib - if we pull back I prefer to play the break of horizontal resistance rather than descending angles of a triangle - this is more reliable -
the chart is showing you 3 upper wicks on daily candles at this area - sellers are distributing their stock here. In order to get on the move, the sellers must become exhausted enough to
break through their distribution level.
Taking a position on the break of the triangle at a lower level is feasible for those who want to load up more size for bigger gains - but don't lose sight of the
.786 being major resistance and plan accordingly.
An aggressive bull strategy when facing a pullback would be to play off the .618 or .5 fib levels from the swing high to low, and then add more on a clear break of the .786 to the upside (pyramiding)
There are a few ways it can play out from there (back test some supports after break, run away etc)
With this information come up with a plan for how you will handle various scenarios and where to take profits (previous high, fib extensions, measure move of the current structure)
Disclaimer: This is NOT investment advice, I am not a financial advisor, do your own research. Adhere to proper risk management, position sizing, etc.
Like and share this post if you found it informative, and please comment below - tell me what you think!