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When A Support Does Not Generate Further Value

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
A support may bring two possibilities, Reverse or Continuous Drop .
A method to judge the change of validation or strength of a support: rise percentage the support generates, if % decreases, the value of the support is decreased.
As shown in the chart, the Blue in 30M indicates the support. From the support, there were two bounces:
1st 2% rise from 11350
2nd 1% rise from 11350
The lower High Indicated the support did not generate more value.
Considering the big trend is down, the breakdown is high probability event, so the support should not be taken as a Demand Zone any more after two bounces. Instead, a short trade may be placed when the second bounce ended ( Green -> Red after the Lower High)

Indicator: 9 Seasons Rainbow Multi TimeFrames Pattern

Signals
Blue: Support
Blue -> Green -> Red: A cycle of Support -> Bounce -> End of Bounce
Green -> Red with a Lower High: Short Trade Entrance

I appreciate your like or comment. Welcome to share your idea here.
PM the author for a one-week free trial of "9 Seasons Rainbow Multi TimeFrames Pattern".

DISCLAIMER
This is only a personal opinion and does NOT serve as investing NOR trading advice.
Please make your own decisions, carefully assess risks and be responsible for your own investing and trading Activities.
A Trading Indicator Artisan, JAVA Programmer,who is helping traders improve productivity.
Tuto List: https://9seasonsrainbowindicator.blogspot.com/search/label/tutorial

Comments

Very beautiful and detail analysis; appreciated your report go8686 =D
Reply
go8686 ICEKI
@ICEKI, Thank you, have to review each idea, esp when it did not run as expected.
Reply
ICEKI go8686
@go8686, def useful information =D
Reply
go8686 ICEKI
@ICEKI, Thank you! A human being is affected by recent price movement, so that the expectation may be enlarged.
Reply
ICEKI go8686
@go8686, YES definitely as true as you said go8686. This morning the US announce delayed the tariffs till Dec 15 not sure this news can bullish the BTC or not. but I believe your analysis bearish bias or stay away the BTC for now
Reply
go8686 ICEKI
@ICEKI, I am not sure if there is strong correlation between tariffs and Bitcoin price. After Chinese Yuan broke-down last week, Argentina’s peso crashed yesterday. I believe more crashes may follow. Could Bitcoin become Virtual Gold?
Reply
ICEKI go8686
@go8686, WOW I love the way you said Bitcoin could become Virtual Gold; the time will proof this out =D
Reply
go8686 ICEKI
@ICEKI, Maybe or may not, let us see.
Reply
ICEKI go8686
@go8686, Yes and let's see your gutsy assumption can make it =D
Reply
go8686 ICEKI
@ICEKI, There are many uncertainty waiting in the future, for example, Quantum computing.
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