ALGO/USD Possible Bullish Bat Pattern
Updated
Taking a look at ALGO/USD, it looks to be completing the C wave of a Bullish Bat Patten. Normally, I don't necessarily like to trade harmonic patterns, gartleys, or bats in the crypto market. It is a good tool for really technical traders who want to find a spot-on target. However, the crypto market is too volatile to expect such things. So I tend to stay away from them and look for mid-long term trends, patterns. That being said, expect this bullish bat pattern to trade within a range. You can use this pattern to find an entry range towards the end of wave c, and catch point D heading back up. Furthermore, point D, the completion of this pattern, coincides with the main trend line marked yellow. I would look to enter just above this point if you are looking to get your order filled.
Fibonacci Analysis: It's always nice to see the initial correction bounce off the .618 in a bull market, which ALGO did, as seen with the blue arrow. But in this case, we will just use this as a sign that ALGO is trading healthy and keep an eye out for these key fib levels. I usually like to use these key fib levels in beautiful elliot wave patterns, not necessarily bat patterns.
Hidden bullish divergence: IF this pattern continues down to the yellow trend line or around that area, I would expect the RSI to achieve a lower low. This would still indicate a higher low in price. This would confirm a hidden bullish divergence. If this is true, then we could say that ALGO is in fact bullish on several levels.
Conclusion: Bullish Bat pattern, bullish fib bounce, hidden bullish divergence. Great entry point around POINT D. Can take profits at previous high and above. I will stay neutral for now because I do not short. But I will say LONG at the completion of this pattern. Of course...... I could be totally wrong.
Fibonacci Analysis: It's always nice to see the initial correction bounce off the .618 in a bull market, which ALGO did, as seen with the blue arrow. But in this case, we will just use this as a sign that ALGO is trading healthy and keep an eye out for these key fib levels. I usually like to use these key fib levels in beautiful elliot wave patterns, not necessarily bat patterns.
Hidden bullish divergence: IF this pattern continues down to the yellow trend line or around that area, I would expect the RSI to achieve a lower low. This would still indicate a higher low in price. This would confirm a hidden bullish divergence. If this is true, then we could say that ALGO is in fact bullish on several levels.
Conclusion: Bullish Bat pattern, bullish fib bounce, hidden bullish divergence. Great entry point around POINT D. Can take profits at previous high and above. I will stay neutral for now because I do not short. But I will say LONG at the completion of this pattern. Of course...... I could be totally wrong.
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