serve as a visual guide for potential reversal levels in the future. When a is broken and needs to be adjusted, it can be confusing. Is it a trend change? In this case, no, it is indicating that the broader momentum is slowing (as slope becomes more horizontal). In order for this to offer any value, price needs to establish a reversal off of it now, and then any retest in the future is what we want to watch closely for a higher probability setup.
The key level that is in play now is the 1.3551 reversal zone boundary. This level represents the extreme range low and if a reversal pattern can materialize in this area, that would offer a high probability swing trade long scenario. It all depends on the price action.
As you can see, when price reached the 1.3988 area which offered potential, a reversal pattern could not materialize for a swing trade. This is why buying at a predetermined level is not enough to justify taking risk. The predetermined level must be accompanied with evidence that buyers are actively absorbing sell orders. This activity is expressed in particular candle patterns which is what we look for at S.C. in order to issue a signal.
Many traders attempt to interpret fundamentals when it comes to the forex market. There is nothing wrong with that if you are into that sort of thing, but through TA I am able to arrive at the same conclusion, often faster, without having to pretend to have a PHD in macro economics. Price discounts all known information in the world at the present time which means the fundamentals are often reflected in the price action and why chart analysis offers substantial value, especially on the short term.
As this market attempts to push its range low of 1.3712, we will be watching for reversal patterns that have the potential to offer a trade scenario that can see price retest the 1.4100 area which is the middle of the range. Check for updates and longer time frame counts on S.C.
Really ? So exactly when and how long has it taken you take actually give a trade recommendation on Bitcoin then? Just asking.
For more experienced traders who prefer to trade Bitcoin than read about it