ft-73

Reading current price action through simple patterns

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
See the patterns shown on chart.

Currently awaiting confirmation of a bearish flag OR a formation of a diamond bottom.
The latter is mere hypothesis, hinted by what could be its left side.
Comment: Well TV is pretty bad at handling this kind of chart.
It should have been like this:

Comment: Well, it definetely looks like a diamond bottom.



This pattern statistically t usually means a short term reversal 2 times out of 3, provided the it breaks up the upper bound on volume.
It may fakeout the move, as diamonds are pretty crazy.
That's what TA basically says.

Mind the fact we have A LOT of manipulation going on.
I'm a cautious guy, so i will watch for a breakout and carefully evaluate volume BEFORE entering a trade.

If in doubt i will choose to wait for a breakout of the whole TRADING RANGE ( see yellow box ). Way less risky.

Take care, good luck.
Comment: There was no attempt to confirm a diamond bottom.
Instead we got a break down.

So it wasn't a diamond ?

No it was.
Problem it was a diamond top from the C wick ...
Pretty unusual, but that's it.



if current low holds price may paint a bigger falling wedge, but soon to say.
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