SKL-USD WEEKLY ADAM & EVE CONCEPT
Updated
In examining high timeframe setups for SKL on Coinbase, I was initially drawn to the notable trading volume, a key indicator of market interest and potential trend shifts.
Upon further analysis, an Adam and Eve pattern emerged on the chart. This classic pattern in technical analysis signals a potential reversal from a downward to an upward trend. It features two parts: the Adam, a sharp and quick V-shaped bottom, and the Eve, a more gradual and rounded U-shaped bottom. The pattern's completion, indicated by a breakout above the resistance level, often suggests a bullish uptrend.
For SKL/USD, applying this pattern involves measuring its depth and using this to project a price target from the breakout point. Importantly, on logarithmic charts, it's more effective to use percentage changes rather than absolute dollar values. This approach ensures consistency across different price levels and better aligns with the exponential nature of market movements.
In the case of SKL/USD, if the Adam and Eve pattern is confirmed, we'd calculate the pattern's depth in percentage terms. This method offers a nuanced perspective, particularly important in logarithmic chart analysis. Our goal would be to apply this percentage change at the breakout level to determine a future price target.
While I'm not claiming expert status, the current scenario suggests two possibilities for SKL/USD: (1) we teleport to the June 2021 Monthly Close over the next few weeks, or (2) we consolidate between $0.04 and $0.12 before (hopefully) pushing to the $0.23 to $0.24 level.
I've personally been averaging into a position the last few weeks/months, but I'd like to get some thoughts from the community. What do you see? What am I missing?
Always use stop losses! Not financial advice. Cheers :)
Upon further analysis, an Adam and Eve pattern emerged on the chart. This classic pattern in technical analysis signals a potential reversal from a downward to an upward trend. It features two parts: the Adam, a sharp and quick V-shaped bottom, and the Eve, a more gradual and rounded U-shaped bottom. The pattern's completion, indicated by a breakout above the resistance level, often suggests a bullish uptrend.
For SKL/USD, applying this pattern involves measuring its depth and using this to project a price target from the breakout point. Importantly, on logarithmic charts, it's more effective to use percentage changes rather than absolute dollar values. This approach ensures consistency across different price levels and better aligns with the exponential nature of market movements.
In the case of SKL/USD, if the Adam and Eve pattern is confirmed, we'd calculate the pattern's depth in percentage terms. This method offers a nuanced perspective, particularly important in logarithmic chart analysis. Our goal would be to apply this percentage change at the breakout level to determine a future price target.
While I'm not claiming expert status, the current scenario suggests two possibilities for SKL/USD: (1) we teleport to the June 2021 Monthly Close over the next few weeks, or (2) we consolidate between $0.04 and $0.12 before (hopefully) pushing to the $0.23 to $0.24 level.
I've personally been averaging into a position the last few weeks/months, but I'd like to get some thoughts from the community. What do you see? What am I missing?
Always use stop losses! Not financial advice. Cheers :)
Note
A bit late in updating this, but the linear target was reached for a solid 70%+ gain. Still waiting to see what happens from here--will we hit the log target as well? Don't forget to move up stop losses!
Not financial advice.
Whatever you do, take care of your shoes.
Just sharing what I’m learning on this trading journey. Check out my charts, and let me know what you think.
Always use stop losses. Not Financial Advice.
#NFA
Just sharing what I’m learning on this trading journey. Check out my charts, and let me know what you think.
Always use stop losses. Not Financial Advice.
#NFA
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