Thanks for taking the time to read my analysis and supporting my ideas here on TV.
Today I want to show you this perfect bat pattern that could be developing here.
This is a great trade setup, because while you normally want to wait for price to reach the D leg of a harmonic pattern before taking a trade, we have the opportunity to go long as well towards the D leg for the following reasons:
1.) Price has bounced off the black ascending trend line and once again looks like it is providing strong diagonal support.
2.) That yellow zone of support has also held price up once again
3.) We can see strong bullish divergences on RSI and MACD in this support area which can be observed up to the 12 hour time frame which signals a big bullish move coming.
In order for the bat harmonic pattern to be considered valid, we will want to see price move past Point B on the pattern and then move towards the Price Reversal Zone (PRZ)
The Price Reversal Zone is established as a confluence of the 88.6% XA level (Initial Point D), the 1.272AB=CD movement level (in orange) and 161.8% BC inversion level (in blue).
This PRZ is also in line with the 0.5 fib retracement of 3.1k to 19.8k.
Once prices reaches the PRZ, we can expect to see price break down towards Target 1 and possibly Target 2 as well which are identified in green on the chart.
If price continues to move past the PRZ, the stop loss is established at the 113% extension of the XA leg (shown in red)
Please remember to click like on this idea if you found it helpful! Thank you!!
Today I want to show you this perfect bat pattern that could be developing here.
This is a great trade setup, because while you normally want to wait for price to reach the D leg of a harmonic pattern before taking a trade, we have the opportunity to go long as well towards the D leg for the following reasons:
1.) Price has bounced off the black ascending trend line and once again looks like it is providing strong diagonal support.
2.) That yellow zone of support has also held price up once again
3.) We can see strong bullish divergences on RSI and MACD in this support area which can be observed up to the 12 hour time frame which signals a big bullish move coming.
In order for the bat harmonic pattern to be considered valid, we will want to see price move past Point B on the pattern and then move towards the Price Reversal Zone (PRZ)
The Price Reversal Zone is established as a confluence of the 88.6% XA level (Initial Point D), the 1.272AB=CD movement level (in orange) and 161.8% BC inversion level (in blue).
This PRZ is also in line with the 0.5 fib retracement of 3.1k to 19.8k.
Once prices reaches the PRZ, we can expect to see price break down towards Target 1 and possibly Target 2 as well which are identified in green on the chart.
If price continues to move past the PRZ, the stop loss is established at the 113% extension of the XA leg (shown in red)
Please remember to click like on this idea if you found it helpful! Thank you!!
Comment:
Got a pretty nice spike last night with high volume, however it really just looks like a short squeeze with no follow through at this point. On the other hand it could also be accumulation, with some whales putting in big orders then letting the market take price back down to fill up on more orders while the price is still just around 10k. Time will tell, but so far on the bigger time frames, we can see that major trend line is still holding price up. We can also see big bullish divergences on Sentiment Index and MACD on the daily time frame which is also a positive sign for the bulls:
Comment:
Plan in still intact. Looking like we will see a move up soon
Order cancelled:
Unfortunately this one didn't play out. Refer to my previous idea which shows the head&shoulders formation on daily