Hello everyone, and welcome!
As you may have seen from my two previous charts, I feel visual representation captivates the reader and allows them to interpret it a lot better, as oppose to inundation of advanced TA technical indicators, wave formation, ABCDE among other techniques I use.
Prior to my finalized charting, I go through a process of many applications of technical indicators, trend lines, fib levels, pattern identification, fundamental analysis and data prepossessing. From thereon, I strip it down to what you see now.
So what do we see?
Well as per my annotation, from the ATH, a sustained period of days equating to more than a 50% correction. I have two Pennants; The large one from the ATH, and the smaller one to further validate movement, both contrasted in different colors to help you see.
From the chart we can see how we have kissed the support line twice recently, which was found from the breakout period that precipitated that savage rally up to the ATH.
We have two further pennants which represent bullish and bearish (hopefully helping you to identify entry, or to wait), of which these correlate with the
positioning on the two larger pennants, trend movement and oscillation. So we have an element of triangulation to add further validity.
Now we have four scenarios
a/ A much anticipated break out, as we can see the end of the pennant in sight, with a current bullish run.
b/ Another cycle to the bearish side, but within the pennant, then a breakout (which is why I drew two arrows of entry)
c/ sideways consolidation
d/ A sudden bearish trend
I am of the opinion that the top two are HIGHLY likely, which is why I will await a period of 2-4 hours, and if we break out, wait for two hourly candles to negate against a bull trap, and enter upon many levels of validation.
To conclude, when the breakout happens, this will be a highly advantageous trade, of which I will be long.
DISCLAIMER: Please also validate any charting/TA that may inform your trading so as to negate against financial detriment.
Good luck
As you may have seen from my two previous charts, I feel visual representation captivates the reader and allows them to interpret it a lot better, as oppose to inundation of advanced TA technical indicators, wave formation, ABCDE among other techniques I use.
Prior to my finalized charting, I go through a process of many applications of technical indicators, trend lines, fib levels, pattern identification, fundamental analysis and data prepossessing. From thereon, I strip it down to what you see now.
So what do we see?
Well as per my annotation, from the ATH, a sustained period of days equating to more than a 50% correction. I have two Pennants; The large one from the ATH, and the smaller one to further validate movement, both contrasted in different colors to help you see.
From the chart we can see how we have kissed the support line twice recently, which was found from the breakout period that precipitated that savage rally up to the ATH.
We have two further pennants which represent bullish and bearish (hopefully helping you to identify entry, or to wait), of which these correlate with the
positioning on the two larger pennants, trend movement and oscillation. So we have an element of triangulation to add further validity.
Now we have four scenarios
a/ A much anticipated break out, as we can see the end of the pennant in sight, with a current bullish run.
b/ Another cycle to the bearish side, but within the pennant, then a breakout (which is why I drew two arrows of entry)
c/ sideways consolidation
d/ A sudden bearish trend
I am of the opinion that the top two are HIGHLY likely, which is why I will await a period of 2-4 hours, and if we break out, wait for two hourly candles to negate against a bull trap, and enter upon many levels of validation.
To conclude, when the breakout happens, this will be a highly advantageous trade, of which I will be long.
DISCLAIMER: Please also validate any charting/TA that may inform your trading so as to negate against financial detriment.
Good luck