This is a higher risk set up than what I normally but what is in the chart is in the chart. This would require not only for this chart pattern to perform but would also require BTC and ETH to behave over the next couple of days to week week as to not confound what is going on here.
The main chart has hidden bullish divergence on the 12 hour and the chart below has classic bullish divergence on the four hour. This suggest to me that Tezos should be moving to the neckline of the cup and handle when the falling wedge performs to the upside and from there we can see if there is enough momentum for price to break the neckline and potentially turn the previous resistance into support and have a nice impulse to the upside.
The chart below shows that the price action has found support on the 3x VSTOP and also the 20 day SMA so the chart formation has some technical support. A quick review of the 20 day SMA and VSTOP shows that when the price action breaks them as support that the decline is steep, once again meaning this to be a high risk trade and set up if traded without a good stop strategy. Thankfully the wedge gives us a chance for a couple of technical entries. I made mine a few hours ago betting on the wicking action at wedge support is a low. Break out traders could look for trades on the wedge or cup neckline or should price action retest the broadening ascending wedge support later on after a pull back.
Risk reward to retest ATH is pretty decent and with the bullish structure I am in the trade. Thanks to the VSTOP and falling wedge I should see this perform sooner as opposed to later.
s3.tradingview.com/s...shots/p/pmCBSCgZ.png
The main chart has hidden bullish divergence on the 12 hour and the chart below has classic bullish divergence on the four hour. This suggest to me that Tezos should be moving to the neckline of the cup and handle when the falling wedge performs to the upside and from there we can see if there is enough momentum for price to break the neckline and potentially turn the previous resistance into support and have a nice impulse to the upside.
The chart below shows that the price action has found support on the 3x VSTOP and also the 20 day SMA so the chart formation has some technical support. A quick review of the 20 day SMA and VSTOP shows that when the price action breaks them as support that the decline is steep, once again meaning this to be a high risk trade and set up if traded without a good stop strategy. Thankfully the wedge gives us a chance for a couple of technical entries. I made mine a few hours ago betting on the wicking action at wedge support is a low. Break out traders could look for trades on the wedge or cup neckline or should price action retest the broadening ascending wedge support later on after a pull back.
Risk reward to retest ATH is pretty decent and with the bullish structure I am in the trade. Thanks to the VSTOP and falling wedge I should see this perform sooner as opposed to later.
s3.tradingview.com/s...shots/p/pmCBSCgZ.png
Trade closed manually:
Closed roughly flat, slightly in the red. Didn't wait for my stop to be reached. We are still in the chart formation but the risk and stress don't seem worth it.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
I continue to like what I see. Price action has moved to the resistance of the wedge and found support on the 0.618 retracement from the beginning of the cup to the low. I am going to give this some more time to firm up then I will move my stop up from a small loss to a small gain under the 0.618 level.