K2 failed to break up or break down to start an upward or continue the downward.
Bear force and bull force are temporarily in balance status here.
It increase the posibility of price shaking.
K2 is a red hammer, it is a sign weakness, price down to test the lower limit of the box is relatively higher.
The energy of dark-cloud cover pattern K1 seems havn't exhausted.
The nearest downtrend diagonal line and uptrend diagonal line creat a price dead corner here.
The box area is close to this dead corner. Price shaking and fake out will most likely happen here frequently.
This increases the risk of trading in the box.
Note
K2 slightly close below the lower line of the box under a relatively increased volume.
It is most likely a fake down action.
The volume of K2 is less than the nearest demand level,
and the red body of K2 with long shadow stay upon the neckline support.
If we want to buy here(at about 25000), stop loss set at 24300.
Or we wait for K3 to return into the box range to verify this fake down prediction to buy in.
If k1 and K3 is a three soldiers stalled pattern, we can also buy in.
Note
I failed to buy in at K2, the price had not touched 25000.
K2 return into the previous box range.
K2 and K1 is an up engulfing pattern, and the volume increased,
which means the nearest downtrend(K0 to K1) may be reversed here.
One weakness of K2 is that, it has long upper shadow stop at 0.5fib line of the nearest downtrend.
If the nearest downtrend or the box chaos trend want to recover,
the following candles should close below the box lower limit line (at about 25400).
If the new born uptrend want to go on,
the following candles should stay upon the middle line of the supposed uptrend (at about 25726).
So, we can try to buy in and put orders at this area (25600-25400), stop loss set at 24900.
Or, we wait for the following retrace candles to verify the supposed uptrend, and then buy in.
Note
From K1 to K3, it is a short term uptrend.
K3 stand upon the middle line of the box range.
The upper shadow of K3 is short than K2,
The supply level of the upper limit of the box hadn’t increased here.
These are good signals of pricing up.
One weakness of K2 and K3 is that, they both close near the middle line of the candle, they couldn’t close upon upper price area.
Which means the bull force is not in fully control.
So, price retrace to test the middle line of the box is most likely happen in coming days.
we can try to buy in and put orders at this area (25600-25800), stop loss set at 25370.
Note
From K2 to K4, it is a three soldiers advance block pattern,
Which means a temporary retrace of buying pressure.
K4 stopped at the nearest downtrend’s 0.5-0.618fib area.
Price correction may happen in the coming days.
We can put orders waiting at 25651-25880, stop loss set at 25390.
K4 break up the horizontal neck line of a potential double bottom pattern.
And the volume of k4 is more than the nearest supply level.
If k5 keep pricing up , it will verify this successful breaking up,
And I will wait for the price to test the neck line to buy in.
Note
After a three soldiers pattern(K2 to K4),
K5 keep pricing up and create a higher high, and closed upon high price area,
Which verify a fact that the bull force keep strong.
K5 is a dogi candle, it tested and verified the support line.
K5 also touched the nearest downtrend line,
and the result showed that the supply pressure is low and decreased here.
So, the price here may break up in the coming days.
If we buy here(26618-26260), stop loss set at 25875.
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.
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.