You stick around I'll make it worth yo' while
My number's beyond what you can dial
Maybe it's cause I'm so versatile
HAHA What's up world? That song always makes me feel good, and the lyrics really apply. =D Let's take a look at Ethereum! Looking at the four hour chart, we can see that Eeth has created a big symmetrical triangle. But MagicPoopCannon! Will it go up? Will it go down? Will it do the moonwalk and go backwards? Well, it's funny that you ask. You see, symmetrical triangles are typically continuation patterns. We've been in a corrective state since the all-time-high, so the pattern should produce a continuation to the downside. Honestly, it's a bit tricky to make that call, though, because you can see that we've also broken out of the top of the falling . Most people probably see that breakout, and immediately think we're going higher. I see a symmetrical triangle continuation pattern, and potentially, a failed breakout occurring. Additionally, if we look closely at the structure being created in the breakout space, it resembles a small descending pattern. The is flattening out, but it has drifted above the zero line, which is a weak short-term buy signal. However, before MPC jumps on the bull train, he wants to see some more evidence. Namely, a breakout to the upside, from this symmetrical triangle. Ultimately, we need to just sit back, and let the chart tell us what will happen next. We need to look for a break to the upside, or a break to the downside. If an upside breakout occurs, ETH will probably run up the 23.6% retrace. If a break to the downside occurs, the 50% retrace should be the next stop. However, I'd like to show you how analysts find price targets for structures like this. Since it is a symmetrical triangle, which is a continuation pattern, and we are in a bear market correction, we can assume that the continuation will be to the downside. To find a price target, we can measure the structure, from the lowest point to the highest point. We then take that measurement, and subtract it (in this case) from the breakdown point. Since a breakdown has not yet occurred, I've estimated where a breakdown might happen. We can see that the price target would be below the 78.6% retrace. Personally, I like to shorten these price targets in favor of significant support levels. So, since I see the 78.6 in that general area, I will opt for that as the proposed symmetrical triangle target. Just FYI, this isn't a real target yet. This is only for illustrative purposes. It won't be a legitimate target, until we actually see a breakdown occur. If a break to the upside were to occur, an upside target could be generated in similar fashion. Looking at the chart, we can see that it's really testing the top of that triangle. So anything is possible. We just have to wait and see. Pay close attention, because high could be just around the corner.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-