Low short term momentum: prepare for a double top
Updated
On a 4H chart, I expect a double top/OR a correction in the next 24 hours as momentum isn't pretty much present for this new uptrend.
This might be due to the weekend, but I'm waiting for a reversal due to low upside volume.
Don't short yet. Wait for signs of a reversal before doing anything.
I advise to cut long positions now or in the next 12 hours to come to avoid being trapped in a potential reversal if it happens.
Two scenarios :
- Double top pattern forming, which would mean going back on between 30 to 70% of the previous uptrend.
- Small correction with higher volume on bullish candles, which would be just a small short-term correction of the uptrend.
This might be due to the weekend, but I'm waiting for a reversal due to low upside volume.
Don't short yet. Wait for signs of a reversal before doing anything.
I advise to cut long positions now or in the next 12 hours to come to avoid being trapped in a potential reversal if it happens.
Two scenarios :
- Double top pattern forming, which would mean going back on between 30 to 70% of the previous uptrend.
- Small correction with higher volume on bullish candles, which would be just a small short-term correction of the uptrend.
Note
Price also seems to be forming a rising wedge pattern which means a correction of the market very soon.Note
Failure to reach upper channel. Prepare for the down ride!
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