Hi friends! Let's take a look at Tron! As you can see, I've left everything on the chart from my last analysis, and Tron has remained under pressure, as expected. Today, I'm going to teach everyone an important lesson on "confirmation." So, what is confirmation? Confirmation, is a move in price action that confirms resistance, support, breakdowns, breakouts, etc. In the case of tron, we're going to focus only on price action, and how, on several occasions, it has confirmed old support as new resistance and vice versa. I'd like to draw your attention to the chart. If you look at the 50 EMA
(in orange,) you can see that it was supportive on three occasions (Held.) Then, price broke below the 50 EMA
, and failed several attempts to get back above (fail.) As you can see, this price action is definite confirmation that the 50 EMA
is no longer supportive. Instead, it's showing that the 50 EMA
has become new resistance. As a result, TRX/BTC
began to trend lower. Again, you can see that the same thing happened at the red "resistance" level. Tron pierced that level, then began violating it with increasing frequency. Then, TRX/BTC
broke below, tried to get back above, failed, and began heading lower. After that, it fell to the 200 EMA
(in purple,) tried to hold, then rolled over and fell below. Now, it looks like it wants to curl back up and test the bottom of the 200 EMA
, to define it as new resistance. This doesn't ALWAYS happen, but Tron is clearly confirming overhead resistance, and showing that (unless things change) the market is likely going to head lower. Look for TRX/BTC
to find continued resistance at the 200 EMA
, possibly sending Tron down around 383.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media! Peace!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***