My main way of trading effectively is through pattern recognition that confirms future price movements based on past movements when seeing the same patterns in the chart and the indicators. I also use fractals and some other methods when I can't come to a decisive conclusion.
As you see here, we have our Bearish Pennant, and inside it is our consolidation after our very steep drop. Which way is the breakout going to go???
1st: Look at the chart pattern as we near the end of the consolidation period. We see our little cup. If we see a strong downward trendline here, it doesn't look good.
2nd: Look at Stochastic RSI patterns. Our stochastic RSI also has a similar pattern when looking at the pattern before the last big downtrend, which is highlighted in a rectangle surrounded by vertical lines.
3rd: Look at any patterns in the MACD and other indicators. Our MACD also has some similarities in it compared to the consolidation period after the drop from 65k.
Are the patterns all lining up in similar ways???? Will they have the same effect on BTC's price??? That's for you to decide!
We will see a continuing downward trendline here followed by a small upward trend line, and then we will see a downward breakout from the bearish pennant.
**This is not financial advice. I'm not a financial advisor**
As you see here, we have our Bearish Pennant, and inside it is our consolidation after our very steep drop. Which way is the breakout going to go???
1st: Look at the chart pattern as we near the end of the consolidation period. We see our little cup. If we see a strong downward trendline here, it doesn't look good.
2nd: Look at Stochastic RSI patterns. Our stochastic RSI also has a similar pattern when looking at the pattern before the last big downtrend, which is highlighted in a rectangle surrounded by vertical lines.
3rd: Look at any patterns in the MACD and other indicators. Our MACD also has some similarities in it compared to the consolidation period after the drop from 65k.
Are the patterns all lining up in similar ways???? Will they have the same effect on BTC's price??? That's for you to decide!
We will see a continuing downward trendline here followed by a small upward trend line, and then we will see a downward breakout from the bearish pennant.
**This is not financial advice. I'm not a financial advisor**