Not saying this is my view, but just laying out a scenario.
Notice that if we do have a 5 wave EW wave 1 and are in a correction now, on the macro scale the wave 1 everyone is laying out (the opening day of trading on matic) it retraced to the .886 before going 10x+ to over .04 from ~.003... Interestingly, if the H&S holds true, the standard way to get a breakdown target is neckline to head = neckline break to target low. In this case would be the .886 of our potential wave 1.
Also, I'm not in love with the wave 1 because the 3rd wave based on the wicks is a 1.27 ext (more common in forex)... on the good side though, the close bodies count/fib level is a 1.618 ex.
Just watching this scenario. If this (slanted) neckline breaks and we see an uptick in sell volume, then we are watching two things, where we get a bounce or if we get a break to new lows... in which case I laid out my worst (kinda best case too) scenario where we retrace to 1.5 cents (618/786 depending on how you line up the fibs) for this entire move... which i'd be happy with because I'd stop out with some profit and then have a spot ready to start looking to for buying back and ultimately have more coin.
manage then risk folks, know the bear case and the bull case.
Comment
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Target hit. basically this hit spot on so far. lets see if we hold or is Matic going more bearish on the daily local bottom>? manage the risk folks
@Jimbojoe, yeah that’s not a hard rule and in crypto even less so...
Jimbojoe
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@measax, Volume is one of the most important aspects of good technical analysis. More important than drawing lines and patterns.
The pattern is the result of price action. And price action is has little meaning without any consideration for the volume underlying it.
measax
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@Jimbojoe, Yes, we know volume is the MOST important. But your point was about volume needing to confirm price action on the H&S otherwise its invalid. Not the case my friend. Volume can surely help increase the odds, but the price action is also import to note and when something goes down 10x on volume as matic has, lower TF volume levels aren't going to be perfect indicators anymore than anything else. The potential was there, we broke. Now we see if there is continuation or if we can resume up. I know the vol rule on an H&S, this was just a note of a scenario, that is still in play. However, there is divergence on the hourly, so lets see what volume and price action tells us next.
measax
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@Jimbojoe, Oh... take a peek now bud - pull up the chart and hit play. cheers
UnknownUnicorn3069819
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Another analyst with color blindness? You would learn color design. =))) I see only colored porridge on your screen.
measax
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@Denis_1979, More like color careless. I know it is busy/ugly but don’t care. These are quickies from my phone and I’m not trying to win awards for design on TV charts. But good to know the design police are on the job