I executed this trade based on my own strategy that uses Ichimoku cloud break out and fibs BUT! I also saw this HS pattern and some trend line tests that I wanted to share that are just further verification for me.
I know this is a bit late to the game for this post (sorry I was working) so this is more of an after action report at this point. On the hourlies, I saw this wedge forming up so I put in bracket orders. I felt like it would go south. bracket was buy at 165.5 and sell at 162.5. sell got triggered on news and I got out at 153 for a 7% gain.
next up im...
I know its a pretty crappy looking wedge but that has been the trend for about the last 15 wedge patterns that have popped up. 12 of the 15 ive seen have broke out opposite of entry direction. given that we have had a test and retest of the 640 support 3 times now and its held im looking for price to go North.
1:1 equal measured move puts us in the neighborhood of 600, strong psychological number, but i wouldn't be surprised if we see a .618 retracement back to 500 before this is done. RSI is already over sold but it can stay down there a while as has been demonstrated in the past.
ETH/USD has some history of breaking out of wedge pattern in the opposite direction of entry. Its consolidating along the trend line reaching back to april. Im long already at 673 (thats another story) looking for T1 at around 700 if it breaks that T2 745. let me know what you think. thanks guys and gals
Got a double top, RSI over bought on the first test.
Consolidation at previous structure
expecting a break out to the down side atleast an equal measured move
strong confluence of fib inversion and fib extension
previous major structure