Following a 14,000% rally and overbought condition (green column) price action is now indicating a strong reversal is about to occur. Why?
1) Stochastic RSI crossing down 80 on the above 3-day chart. The Stochastic RSI is also crossing down on the weekly (not shown here).
2) Hanging man candle. This reversal candle is confirmed by:
a) A rally
b) Sellers close price action lower into exhausted buyers.
c) Following candle closes lower as sellers move in.
3) Money Flow Index (MFI) (the bottom oscillator) has become resistance following months of support. Time to get out.
The 21-weekly moving average (bull market support) is at $2.50 at this moment in time.
1st target is $2.50
1) Stochastic RSI crossing down 80 on the above 3-day chart. The Stochastic RSI is also crossing down on the weekly (not shown here).
2) Hanging man candle. This reversal candle is confirmed by:
a) A rally
b) Sellers close price action lower into exhausted buyers.
c) Following candle closes lower as sellers move in.
3) Money Flow Index (MFI) (the bottom oscillator) has become resistance following months of support. Time to get out.
The 21-weekly moving average (bull market support) is at $2.50 at this moment in time.
1st target is $2.50
Note
Price action likely to make another run for $7 area.Trade active
The recently printed weekly candle (below) confirms the bearish reversal in price action with the 'hanging man' candle.1st target is updated to $2.96 at this moment in time. However with Stochastic RSI under 20 price action could collapse straight through the 21-week moving average as it did in the past (black circles).
Note
Monthly candle for January prints a spinning top. In other words neither buyers or sellers know which direction to go.If next month also prints a red candle a strong reversal in price action will follow. Wait for confirmation.
Note
Price action continues inside the ascending triangle formation. There is no trade to be made here until a breakout is confirmed.On the 2-day chart below Stochastic RSI is point downward. No long position is possible while pointing this direction. However Stochastic RSI is a lagging indication.
If price action closes the day at $6.60 - go long.
If price action closes the day at $4.50 - get out fast.
Note
Both price action and RSI print a lower high on the 5-day chart below. Trade active
Note
$4.08 is a very important level - watch it carefully.Note
This is the 10-day Bitcoin chart. Two points:1) Price action has broken the 21-week EMA (Green line)
2) The candles, huge amounts of selling pressure when testing the 21-week as resistance.
In summary it tells me if you've no taken profits way back you're about to be taught a very painful lesson.
Trade closed manually
The $4.08 level held and now makes this idea void thereby bringing 3-months of boring sideways price action to an end.A move to $11 area should now be expected.
Trade active
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.