What is a Descending Channel:
It is when you have a downward trend with parallel lines showing Higher-Lows & Lower-Lows.
If the channel breaks down sharply, we will have a continuation of the trend and see further downside.
If the channel breaks sharply up, we will have a reversal of the trend and see greater upside.
It has broken down out of it's rising Trend-Line that it has held since late October which is .
But currently it is has confluence with the "Long Term Support-line" as well as it has found support from the 100EMA.
The green box is where I would like to see a bounce, if it breaks there I expect continuation.
A convincing bounce here would be a good sign and I would look to take an entry with a break of the topside of the channel & 9EMA.
Things to note:
1) Alt coins such as REP are subject to Bitcoin , and tight stop losses should be used if you enter a trade and increases on Bitcoin .
2) None of this is trading advice and is strictly an expression of my opinion.
3) Monitor to gauge the strength of a move, if we break up or down, look at the to see how strong of a move it is.
4) At the moment i'm neutral on the trade and am waiting for further signal to buy a breakout of trend. I will update trade when I can if anything changes on my bias.
Lastly, please give me a like and or follow, and a follow on twitter if you like my post!
I would enter in larger amounts with a break of the top of the channel.
However descending channel is still in play.
With the looming idea of BTC dumping, i'm waiting for a confirmation break of the top of the channel before buying anymore.
We have lost the 9EMA & 21EMA as support. As well as the long-term support line.
I'm targeting past support (green line) for a bounce and a break of the descending channel.
If it can break here that would be the play we have been looking for. Decent amount of resistance ahead.
The break coincides with a bounce of the 100EMA.
As you can see on the chart here the 100EMA is very relevant still, as well as the 9EMA which we're looking to reclaim in this candle.
See Daily chart.
The only thing not convincing is the volume on this break. Breaking this down into shorter time frame to elaborate.
The long term support line had an S/R flip, also coinciding with the reclaiming of 100EMA.
We're looking at the 100MA as well as the red resistance box to break next for a bigger move to the upside.
If you want to play this conservatively, wait until we break 100MA convincingly for a buy, and sell at the top of resistance. Roughly 10% gains.