While analyzing DNT , I found a perfect formation that satisfies all the conditions of a good formation. The formation generally sign if the continuation of . As the market is forming this pattern, it tests the old high. The handle is formed because of the selling pressure from investors who bought at the level of the old high.
Going through the characteristics of a formation:
- The cup was a U shaped cup. -> Satisfied
- The cup was not deep. -> Satisfied
- Handle did not go below the middle of the cup. -> Satisfied
- decreased as the price declined. -> Satisfied
- remain lower than average in the base of the cup -> Not satisfied as we had some spikes in
- Backed up to test the previous high. -> Satisfied
The target for the formation is determined by measuring the distance between the bottom of the cup to the handle breakout level. The same distance applied from the handle breakout should be the target for this formation.
Well, the 50 and 200 are about to crossover which is an indicator of a great .
In case the continues, the targets are the same from my previous chart.
- target: 0.00001014
- Target 1: 0.00001193
- Target 2: 0.00001495
- Target 3: 0.00002097
This trade was greatly based on the concepts found in the article in investopedia
Good luck trading :)
***This information is not a financial advice. I am still learning and practicing.***
In case you want to rebuy, entry zone is 890 to 950 sats