OMG Crown Reversal: Wave 2 Consolidation or Deep Correction?

Updated

Chart data shows us we should anticipate long AND short price action in the OMGUSD pair. Previous threads show we should look for a nearest-term downside movement, followed by a break to the upside manifesting in a structural wave 3. Alternatively, we could see a breach in a key fibo level to initiate a deeper correction. It is important to keep in mind that price action in the OMGUSD pair can be anticipated by observing the OMGBTC and BTCUSD charts as well.

Please note: The investment strategy here contains both short and long opportunities :)

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Possible shorting boxes:

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The shorting box took out the bullish confirmation (fake out) and now we formed a double top. Notice the possible rising wedge pattern (not the first one OMG has formed in the chart data).

Keep in mind we are currently struggling in the OMGBTC chart as well.

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I've drawn long and short boxes further to the right. These are dependent on the bottom of the next leg down.

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Hmmmm, what does the data in this chart tell us about the current rising price action in BTCUSD? I wonder .... hmmmm

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You may want to short the breakout from the wedge, rather than waiting for the $8.92 confirmation line. Keep in mind the major fibo support is right there along side the uptrend line. This way you have some room to navigate in case you get a bullish indicator liek RSI. Pay attention to BTCUSD and OMGBTC.

Trade active

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We are at the major fibo support and we have breached the uptrend line. This is a tricky place to short, so If you did not enter at the wedge breakout you should sit this one out. ALso, looks like a bit of bullish divergence on the 1HR, but this could be a continuation pattern developing rather than a reversal.

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Here's what I warned about; shorting at the confirmation line ($8.92) would have left you with a loss atm. I still have my stop at entry+ commission...

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Testing the major fibo support again. Bouncing off again in quite bullish. :)

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As you know, you'll want to watch the OMGBTC chart, too. Just like the OMGUSD pair, we are kissing the major fibo support in this chart along with the downtrend.

I'll post a new OMGBTC chart as soon as we either bounce off the major fibo or breach it.

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I'm still in the game as with OMG I watch for a bullish diverge on the 1HR...then I open swing long trades. This activity around the major fibo is bullish...BUT we only have a wick currently.

The OMGBTC is looking pretty weak, so this will keep things bearish in the OMGUSD even if BTCUSD is staging a bit of a rally:

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I'm still in the game! We are still in the small long box area with support at around $8.53. Looks like a mini triangle is forming with a potential target of the trading range support at $7.62. Confirmation is a break of the long box support.

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Great@!

Reached Min TP in the other chart:

Trade closed: target reached

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Ok. We beached the trading range support ($7.62), but came back up to visit it before getting to the next range support ($6.49). We dipped below $7 for a moment but came back up to trigger the stop-loss. We are still trading within the downtrend channel.

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Reached MID TP here...RSI is coming back around for more bear.

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Potential long setup if we don't trade below $6.92

Would be nice to see a breakout of the downtrend channel first tho.

Trade closed: target reached

vERY NICE. I would close this now as you've made a killing. I'm closing this thread. Cheers!

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Haha! Oops must have crashed the market when I cashed out :P

Trader6127

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