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Broadening Wedge

Bitcoin back to $3740 res of a broadening or falling wedge?The way I see it, this is either a broadening wedge or a falling wedge. The difference is that if this is a falling wedge, we might be approaching the falling wedge resistance to around $3740 which coincides with a 38.2 fib retracement to the 29 November high. There is also bullish divergence on the 1H MFI so expecting a move to $3740. We either then have a strong break out above the falling wedge with volume to our $4025 resistance (61.8 fib retracement to our 29 November high), or we fall back to the falling wedge support at around $3200 for another bounce to the wedge resistance at around $3500. On the other hand, if this is a broadening wedge playing out, we still might break above wedge resistance when we get to $3740, however if we drop from there, we'll move towards our broadening wedge support at around $2800 before bouncing back towards resistance. If we do have a bullish breakout, I'm expecting a move to our $4950 resistance (138.2 fib ext) then to either our daily SMA50 which coincides with a 161.8 fib extension at around $5236 and if we break above the SMA100, then we can expect to test SMA100 at around $5950. We still need to test these moving averages at some point and there is bullish divergence on the 1D. The only problem is volume and the fact that we have hidden bearish divergence on the 4H so we might have a drop from our $3740 resistance. Then we'll see if our support lies at $3220 or $2800. Good luck and happy trading!
BITFINEX:BTCUSD
by Corn_Reaper
Down to retest $3kBitcoin currently forming a rising wedge and showing strong hidden bearish divergence on the 4H MFI. If the larger formation is a broadening wedge, then we have already touched resistance twice and should be making a move towards our most recent trend line support which has been holding since 1 December. This is also a 20.75% drop from the 4 December high and coincides with a 138.2 - 161.8 fib extension which gives a target of $3000 and a buy zone between $2880 - $3080. StochRSI is also oversold and a drop below the wedge support is also a drop below our median bollinger band on the 4H. We're not ready for a sustained move to the upside just yet since there is still no volume and we'll probably only find it once we have tested the lower $3k area. Good luck and happy trading! Previous chart:
BITFINEX:BTCUSDShort
by Corn_Reaper
1
Bitcoin still has a little bit of upsideBitcoin is printing a bullish ascending triangle on the shorter time frames and currently playing out within a broadening wedge which is itself within a larger broadening wedge so there is potentially further room to the upside for btc and a lot of room to the downside if we drop below SMA200 on the weekly. The target of the ascending triangle is around 5% to the broadening wedge resistance and a 127.2 fib extension from the base of the flag pole to around $3730. We might then either retrace to the broadening wedge support (127.2 fib extension from resistance) at around $3150 before bouncing or if we have enough volume, we'll move towards the resistance of the larger broadening wedge at around $4000 which is a 161.8 fib extension from the smaller wedge support. Let's hope we have a strong bullish break above resistance if we get there for the broadening wedge to play out the bullish version otherwise we'll be retesting it's support. If btcusd breaks below the current broadening wedge support, then we'll also drop below the weekly SMA200 which could turn ugly considering support for the larger wedge is around the $1k zone. Good luck and happy trading!
BITFINEX:BTCUSD
by Corn_Reaper
7
Dow Likely Entering Bear Market: Broadening Top; Bear Flag Ominous portents. Broadening top in September led to the microcrash in October and US Equities have been struggling since. November usually one of the best months for stocks, has only been a down month in 3 years of past 20; those were in Bear Markets... Some very fine textbook chart formations appearing over past few months. The Zig-Zag Correction has led to what appears to be the end of the Great Bull. Fed will hike again next month and if they hike twice more we will get a recession starting in 2019. Earnings have already passed their halcyon days, look at Apple and NVidia, IBM and many other issues already entering bear markets. The power to drive this market to new heights has leaked out of the balloon, I'm afraid. Spent a weekend reading Murphy's Technical Analysis of Financial Markets, Chapter 6: Continuation Patterns is a lovely read, quoted for your reading pleasure: "The Broadening Formation is an unusual variation of the triangle and is relatively rare.... looks like an expanding triangle... also called a 'Megaphone Top.' In other triangular patterns, the volume tends to diminish as the swings grow narrower; in the broadening formation, volume tends to expand along with wider price swings. This situation represents a market that is out of control and unusually emotional. Because this pattern also represents an unusual amount of public participation, it most often occurs at major market tops. The expanding pattern, therefore, is usually a bearish formation. It generally appears near the end of a major bull market." -Murphy, 1999 Revised Ed., pages 140-141. "The flag and pennant represent brief pauses in a dynamic market move. One requirement... is they be preceded by a sharp, almost straight-line move. They represent pauses in which that market 'catches its breath' before running off in the same direction. Flags and pennants are among the most reliable continuation patterns and only rarely produce a trend reversal. ...Flags and pennants are said to 'fly at half-mast' from a 'flagpole,' as they appear at the midpoint of a major move. Pennants and flags on downtrends are completed very quickly, often in only 1-2 weeks, after which the breaking of the lower trendline in the pennant signals the resumption of the downtrend. The break down will take place on heavy volume, and the magnitude of the move is estimated by measuring the vertical distance of the preceding move from the breakout point of the pennant . Flags are small parallelograms that slope against the prevailing trend. Pennants resemble small horizontal symmetrical triangles." -Murphy, 1999 Revised Ed., pages 141-145. Well, this flag started flying on 14 Nov, I reckon it might snap off after the holiday week, maybe sooner, who knows? Expect it to fly a bit higher, to form a right shoulder which might be expected to occur around 25600 on Dow. We saw 25500 very briefly Friday on Trumptweet, another such tweet could top off the flag. Good luck! As always this is an educational post for your amusement and does not constitute investment advice; trade at your own risk!
DJ:DJI
by DaddySawbucks
11
IcOn - Ethereum's alternative - bottom 0.0000880First of all - Technical analysis of any sort is based on historical price action. Any future price action prediction is a theoretical view of an author in regards to speculated price movement. Trader/analyst/investor by using chosen set of tools hopes to gain profit from those trading pairs which seems to follow rigoristic criteria. Icon/Bitcoin is now one of those pairs from my point of view. Major focus : 1. Theory: my ideas always fail. 2. A trend is your friend. 3. Importance of Rsi (Relative Strength Index). 4. Patterns / Formations. Analysis : It is obvious that we are certainly not in a bull market. As an author of this analysis, I am assuming we found a bottom in the ICX/BTC pair. RSI indicates signs of bullish divergence (12'th of September vs 12'th of November) - volume is dropping, bears are slowly losing steam. We can clearly see falling wedge (white) and bullish broadening wedge (blue) - both indicate a possible change of price movement to the upside. Targets are divided into 2 categories (green and yellow) - green is most likely to happen in a relatively short period of time (up to 90 days) yellow is a longer term investment. If bottom at 0.0000880 is broken and candle closes below, we can expect the price to drop down to previous low (around 0.0000770) - I would advise here tight Stop-Loss at 0.0000840 level. This analysis will be regularly updated.
Long
by crypto_poet
Broadening Wedge & Potential Large Drop Signs I think are showing us an opportunity to short again: -BTCUSD looks ready for the continuation downward to "C" heading for completion of the corrective wave down from $7400. -Price looks like its worked its way up then bounced back down from an area around the .5 & .618 fib retracement of the previous fall. -BTCUSD appears to be heading for fulfillment of a broadening wedge inside another broadening wedge. -There has been a noticeable decline in volume since the 3rd wave on the 3 hour from September 20th paired with the additional volume decline since the 3rd wave of the 3rd wave on September 27th. -Its been roughly the same amount of time before falling so far during the 5th wave of the bounce that it has been for the other 2 since September 11th. -Price seems to be forming a Head & Shoulders aiming down with the top on September 21st -We still havent hit a daily oversold mark on the RSI since the run in December like the crash of 2014 had to before it could come back up. Wave "A"-"B" down from $7400 was approx 17% which is usually a similar distance for "B"-"C" meaning we could be in for a pretty nice short if this plays out. *Im still very bullish long term on Bitcoin.
BITFINEX:BTCUSDShort
by ANobleNerd
Broadening Descending Wedge could signify a possible bull rally!Traditionally, as seen historically with broadening descending wedges , we may see a breakout up to the low $7000s soon. These types of moves happen quite often in these patterns, 3 touches of the bottom of the wedge and 3 touches of the top followed by a partial decline before the breakout. Warning: I am currently in no position, I will wait for further confirmation with a clean breakout before entering any trade.
BITFINEX:BTCUSDLong
by TheCryptoRuler