BITFINEX:XRPUSD   Ripple / U.S. Dollar
463 10 8
We are set for the bullish ride once more. Watch out for confirmation as per on the chart.

I will update once the reversal is confirmed.
Comment: We are testing the trend line & the Kumo cloud from the bottom side.

Still no signal or confirmation, but the analysis still holds.

Comment: We are witnessing some consolidation of the price. I expect the breakout to happen with the Asian session tomorrow may be.

Analysis still holds, but not bullish signal confirmation yet.
Comment: Price broke into the desired zone during the Asian session today as anticipated.
But I still won't enter now. Waiting for the candle to close first then enter.

Comment: The price is heavily struggling to break to the zone identified which confirms its significance.

Patience is the key right now.
Trade active: XRP Broke out to the buy zone. Now is the time to go long on this crypto.
Hi i really like your analysis but wouldn't the right shoulder announce a bearish trend which falls in line with the downward trendline that has been going on for the past weeks ?
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Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, Thanks. The head and shoulder formation confirms the reversal in a trend. For a down trend (like the one we are in for ripple), the lower lows stop at the HEAD of the pattern, and starts to form a higher low as the right shoulder(as in the chart below). Once the high low (right shoulder) is confirmed (such that the price doesn't keep dropping below it), the price is expected to keep moving in an uptrend reversing the previous down trend.

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Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, The WTI Crude Oil recently formed an example of that Head and Shoulder Formation when it reversed from the bearish movement into a very strong bullish uprise.

Reply
xX_Carlo96_Xx Wahid_Elgohary
but a reversed head and shoulder is a sign of bullish trend...but thank you for the information about loweter lows and highs i did not know that
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Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, Yeah, exactly.
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Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, It could happen in the other direction as, such as that for GBPNZD trend changing from bullish to bearish now

Reply
Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, But as notice I do not rely on the pattern alone, I try to look for multiple confirmations.

1. The Head and Shoulder Pattern
2. The breakout of baseline Trend line
3. RSI-Price divergence
4. Strong Signal by Ichimoko Indicator - The Breakout of Kumo Clouds with future cloud change and the Kajen Sen (purple line) very close to the price during the breakout.
Reply
xX_Carlo96_Xx Wahid_Elgohary
@Wahid_Elgohary, what do you mean by RSI and price divergence
and not verry familliar with this ichimoko indicator but looked interesting
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Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, RSI and price divergence is when the RSI is showing a higher low, but the price is dropping to a lower low. Usually in a strong trend backed by many people trading (true trend), the RSI should drop to a lower low when the price drops to a lower low, but it is not the case for the chart that I have shared. The price went down to lower low, but the RSI was in fact making higher lows !

When such "divergence" of behaviour happens, the price usually corrects itself and goes up. Its a weak sign of reversal that is only indicative of short term behaviour, but it still counts as a reversal signal.
Reply
Wahid_Elgohary xX_Carlo96_Xx
@xX_Carlo96_Xx, Ichimoko is a bit complex to explain in a comment. It is usually used for forex trades.

https://www.youtube.com/user/ChaosTrader63 This guy is professional at using Ichimoko and I have learned a lot from him. May be you should give him a try.
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