https://www.tradingview.com/x/r5Wq63S7/
The decreasing volume from K1 to K3 verified the short-term downtrend,
And it seems that the support is not strong enough to reverse the newly born downtrend.
It is likely that the following candles will test the support or even close below the support.
So, if I bought it earlier,
I will cut off all my long positions to avoid such risks.
If the following candles close below K2,
It is possible that the short-term downtrend will expand,
And another bear run starts from here.
The problem for the bull force is lacking enough demands.
If the following candles fall to find enough demands near the uptrend line or 0.382fib line,
It is still valuable to buy it there.
The decreasing volume from K1 to K3 verified the short-term downtrend,
And it seems that the support is not strong enough to reverse the newly born downtrend.
It is likely that the following candles will test the support or even close below the support.
So, if I bought it earlier,
I will cut off all my long positions to avoid such risks.
If the following candles close below K2,
It is possible that the short-term downtrend will expand,
And another bear run starts from here.
The problem for the bull force is lacking enough demands.
If the following candles fall to find enough demands near the uptrend line or 0.382fib line,
It is still valuable to buy it there.
Note
K3 close below the neck line of a potential larger scale double top pattern with a bear gap and increasing supply pressure.
It is a strong bearish signal and verified that the previous short-term downtrend is expanding.
K3 touched the uptrend line,
It seems that the demands is too low to reverse the expanded downtrend.
If the bull force couldn’t take the chance to return back upon the neck line,
The price will fall deeper.
On the other hand,
It is possible that the following candles rebound to test the supply pressure at the neck line.
Note
K3 close below K2 and the uptrend line,
It verified that the downtrend keeps expanding and supply pressure keeps increasing.
So, it is likely that the following candles will keep falling to test the 0.5fib area.
If the price of this month close below the 0.5fib line,
The month scale long-term bull market will likely be terminated there.
On the other hand,
The demands at K3 sharply increased.
It is a first good signal for the month scale bull market.
If the following candles successfully test the 0.5fib line,
It will be a valuable place to establish a tentative long-term positions.
I will try to buy it there.
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.