The descending scallop pattern is a curved elongated downwards support that has a throwback at the end of the curve (the throwback is the swing high before the 0.382 bounce marked on the chart)
I noticed the nice ones happen to always bounce off the golden fib before breaking out so lets see what happens here.
I have covered the descending scallop idea many times before, Look at the linked idea below for a recent study on how you could of traded this pattern.
I would beware if price closes under the fib bounce area once that happens next strong support is 9585.
I noticed the nice ones happen to always bounce off the golden fib before breaking out so lets see what happens here.
I have covered the descending scallop idea many times before, Look at the linked idea below for a recent study on how you could of traded this pattern.
I would beware if price closes under the fib bounce area once that happens next strong support is 9585.
Comment:
Possible rising wedge
1. We dont have a 5th touch, until that happens the idea is invalid
2. Consider that rising wedges have a low success rate for downwards breakouts even if that occurs
1. We dont have a 5th touch, until that happens the idea is invalid
2. Consider that rising wedges have a low success rate for downwards breakouts even if that occurs
Comment:
I forgot to mention, the pattern failure target of this scallop pattern is around 9350-9400 if we do close under the bottom white line.
Comment:
BTC- Put in a descending scallop and ended up SFPing off the pattern failure level, Still looking at the breakout level i listed on that chart, 9725.
We have created a small trading range between the breakout level and pattern failure level and once we get a close above/below either we are alot more likley to head in that direction.
9585 Is a a strong support i wouldnt be super bearish until we are under that level again .
We also have the possibility of a IHS here but so far the breakout was rejected (XBT Chart)
Looking at at different chart with volume
1. shit volume
2. no breakout
essential we hold the 0.618 on the chart for even the slightest possibility of this playing out.. we need to break the neckline with strong volume or its likely the pattern will just fuzz out.
We have created a small trading range between the breakout level and pattern failure level and once we get a close above/below either we are alot more likley to head in that direction.
9585 Is a a strong support i wouldnt be super bearish until we are under that level again .
We also have the possibility of a IHS here but so far the breakout was rejected (XBT Chart)
Looking at at different chart with volume
2. no breakout
essential we hold the 0.618 on the chart for even the slightest possibility of this playing out.. we need to break the neckline with strong volume or its likely the pattern will just fuzz out.
We could be breaking out of a double bottom right now which is positive for the descending scallop idea