Looking at the 8HR time frame you can see that BTC has made a pennant/triangle pattern. (continuation pattern)
#1. Using our Fibonnacci tool you can see that the swing high to swing low retraced just about to our 38% Fib Level.
When I trade triangles I look for the retracement to be less than 38% because it shows there is enough momentum there (in my opinion).
#2. The move leading into the triangle was bearish, the breakout was also bearish which is what we like to see when trading this continuation pattern.
#3 We just got a bearish engulfing pattern on the 1HR chart right at our retest line as well (not in photo)
White Dotted Line: I'd really like to see price close below $6500 (round number & previous low) to really show me that sellers have momentum here.
If you we can close below that I'm looking for price to hit my fib extensions at $6400 and $6335. They also line up perfectly with a previous level of support and resistance.
On the bottom of the screen you will also see there is a yellow trendline, that is a daily trendline which is bullish support (stronger then an 8hr line), I'm not looking for price to pass this, if it does, we will most likely encounter some good resistance as well.
Hope this was hopeful!
Good luck everyone :)
#1. Using our Fibonnacci tool you can see that the swing high to swing low retraced just about to our 38% Fib Level.
When I trade triangles I look for the retracement to be less than 38% because it shows there is enough momentum there (in my opinion).
#2. The move leading into the triangle was bearish, the breakout was also bearish which is what we like to see when trading this continuation pattern.
#3 We just got a bearish engulfing pattern on the 1HR chart right at our retest line as well (not in photo)
White Dotted Line: I'd really like to see price close below $6500 (round number & previous low) to really show me that sellers have momentum here.
If you we can close below that I'm looking for price to hit my fib extensions at $6400 and $6335. They also line up perfectly with a previous level of support and resistance.
On the bottom of the screen you will also see there is a yellow trendline, that is a daily trendline which is bullish support (stronger then an 8hr line), I'm not looking for price to pass this, if it does, we will most likely encounter some good resistance as well.
Hope this was hopeful!
Good luck everyone :)
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Each week, I send an email breakdown of the best forex setups, watch zones, and market trends so you can trade with confidence.
Your next setup is waiting—Subscribe for access to my weekly outlooks.
Your next setup is waiting—Subscribe for access to my weekly outlooks.
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.