If we look at 4H chart, we can see a pennant chart pattern. It's a continuation pattern and mainly after a breakout of its signal line, a market continues the previous trend. The pennant is formed by support and resistance lines converge towards each other. We have to trade this pattern based on breakout signals. As it's a continuation pattern we should expect that price moves upward and breaks the resistance line. After that we'll have a buy signal and a possible entry level above the signal candle. But we must be very careful with this trading signal. The breakout will be near the strong resistance zone formed by 2900.00 and 3000.00 levels. This zone will be able to stop and reverse the market with further short term downward movement. But if you want to take part in risky trade, why not? Just you must use stop orders with your long trades. Place stop orders below 2645.00 level which is the local swing low. Based on this chart pattern, profit target should be near 3500.00 level. Don't forget that when price breaks the resistance line of the pennant, it will be better to get confirmation from volume too. Volume will have to be strong during this breakout. If you are not sure that the market will be able to pass throught the resistance zone, you should skip this buy signal.
Bình luận
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Price broke the support line and it is falling to 2600.00 level. Watch for price action near this support level.
From my studies I have seen that the triangle has become increasingly bearish and that 1 day and 12h charts are predominantely bearish. However shorter term charts like 1h seem to be mainly bullish. I believe that it will make another attempt to break out upwards. Then if it fails, the bearish divergences will be visible and we will see a stronger correction at least down to $2400. I will buy at a confirmed establishment above $3000.
Thank you for your great posts. I read all of your BTC posts, even if I don't necessarily agree with everything. :)
DLavrov
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@torjusg, thanks for your comment! If you have your view on the markets, I should say - it's great!
football3958
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@torjusg, there are always epic fake outs, in times before great breakouts!
Christoffer81
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What indicator do I use to check the volume?
bigmac375
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everyone is waiting for a breakout that keeps getting delayed, bearish.
I strongly invite you to comment on this gentleman’s version of BTCUSD pennant which has not yet been breached like many others on this locality of charts these days :
I depicted it on 4 different exchanges and all 4 unanimously show a 26th July afternoon breakout!
IvanLabrie
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You will redraw those lines a few times before August 1st...price won't break out before that.
DLavrov
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@IvanLabrie, probably there will be new chart patterns. But this one is still workable.
IvanLabrie
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@DLavrov, I understand, but well, I don't ignore fundamentals and focus on price.
Let's see how it goes, if it ends up building something like this we are in for a treat buying the breakout.
Cheers!
Thank you for your great posts. I read all of your BTC posts, even if I don't necessarily agree with everything. :)