Get started

Descending Broadening Wedge

BTC/USD 15 min/4H charts (11/13/2018)Good morning, traders. Bitcoin has found itself having trouble moving up. Watching the order books, price action, and volume it appears that price is being contained. With CBOE Bitcoin futures expiring tomorrow, it wouldn't surprise me if we saw a sudden move up within the next 24 hours. But we don't trade on guesses or opinion, only on the chart. So, for now, I remain disinterested in trading any movement within the black TR that price has been in since September. As an aside, Binance is scheduled to upgrade its platform at 2 a.m. UTC and it's expected to take approximately 8 hours. As mentioned yesterday, failure of price to push through the top of the descending channel/flag made the potential targets based on that pattern obsolete. I also mentioned that if price fell, rather than rose, I would be watching for $6270 and $6200 to provide support. Price hit a low of $6244.35 (at the 15 minute S2 pivot) before bouncing on the 4H chart. The 4H MACD histogram appears most likely to print bullish divergence between 6 a.m. CST on November 11th and 2:00 a.m. CST this morning, as long as this current candle closes near $6300 or above. I have modified the blue descending wedge to compensate for the price action since yesterday's post and it suggests upward momentum. With the 4H bullish divergence on tap as well, this seems more likely than not. Based on the widest area of the descending wedge, we should expect price to target the light blue box (generally around $6533) upon a breach and close above the wedge's resistance. As shown, that would bring price above the red resistance line and near the top of the black TR. The 15 minute chart gives us a closer look at the current price action. We can see that $6310 is providing resistance and that the S1 pivot around $6281 is providing most of the support. Drops below that pivot are being absorbed as demonstrated by the long lower wicks. RSI is neutral, bouncing between 45 and 60, and MACD has been trending upward. The MACD is printing bullish divergence on this small TF, so we should likely expect price to target the $6310 area at the least. OBV continues to rise with price. The 4H chart is showing more of the same -- long lower wicks suggesting absorption. RSI is sitting on oversold which means it has a lot of room to run as price is nearing completion of the descending wedge. Trader should be watching for bullish divergence on this TF as well. Ultimately, we are watching for price to push through the upper black horizontal line which denotes the top of the resistance area at the $6800 level thereby creating a show of strength (SOS). The expectation at that point would be retracement and consolidation around that upper black horizontal line (possibly printing a pennant) in the form of a "back up to the edge of the creek/last point of support" (BUEC/LPS) followed by another SOS above $7000. If that SOS-to-BUEC/LPS prints a pennant around $6800, then at this time we can expect a target of around $7600 when price breaks the pennant's resistance. This would complete the complex fulcrum and should signal the bull market is likely in effect. Remember, a breach of $8500 gives us the higher high that we've been waiting for and would likely be a strong buy signal to many traders sitting on the sidelines. After that, $10,000 becomes the next signal, and then of course the February high around $11,780. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSD
by Chris_Inks
1
Bitcoin's path to the $7450 major resistanceBitcoin (Bitfinex) found a little bit of momentum, forming higher lows and higher highs within an ascending channel on the 4H chart since 31 October. BTCUSD did fall out of the channel this morning and is currently within a small descending broadening wedge, however, StochRSI is oversold and RSI is fast approaching oversold on the 4H so I don't suspect a drop lower than $6360 before the momentum starts picking up again for a bullish break out of the broadening wedge towards our first target at $6600 to see if BTCUSD can stay within the ascending channel. If the move takes place with strong volume and enough conviction from the bulls, then the next target will be a move up to the top of the channel and 0.38 fib resistance at $6832. This move may lack the volume to stay inside the channel, however, since oscillators are heading towards overbought territory on the 1D chart, so there may be a slight correction back to the larger uptrend support before resuming an upwards move back towards the channel at $6832 and 0.382 fib resistance. Once $6832 has been successfully tested as support, next target is $7015 at 0.5 fib and then $7197 resistance at 0.618 fib. Once $7197 has been cleared as support then BTCUSD should reach the $7457 major resistance at 0.786 fib. Price should then either break out of the channel to the upside for a December Christmas rally towards $8500, or the $7450 resistance may prove to be too strong with low volume, in either case there should be a retreat back towards the larger uptrend support around $6660 at the end of December. 29 December 2018 is decision day for the Van Eck ETF but the SEC may defer the decision one last time to 29 February 2019, in which case I expect the price to fall below the larger uptrend support for a retest of the 2018 annual lows. If the Van Eck ETF does get approved, this may be the catalyst for the bull run starting in Q1 2019. If the ETF is rejected on 29 December, there may be bearish capitulation in January and the bull market may only potentially begin in Q2 if there is ETF approval on 29 February 2019. If the ETF is rejected on 29 February 2019 then we may be in for an extended bear market until the market finds a catalyst to attract new investors, however, Van Eck seem confident that they should receive approval with all the recent institutional developments in the space and mitigation of prior concerns so let's see. Good luck and happy trading! Previous chart:
BITFINEX:BTCUSDLong
by Corn_Reaper
1
BTC/USD 15 min/4H charts (10/23/2018)Good morning, traders. Overnight we saw Bitcoin return to fill the gap as mentioned it would do yesterday. But, in doing so, price has moved below the black ascending channel that was in the process of printing so I have removed it. More 15 minute gaps were created on the move down so we can expect price to fill them as well now. We also saw a large spike in volume on the candle low, suggesting absorption continues to happen in that area. This was the largest volume that we have seen on that TF in the past five days. RSI bounced off oversold and MACD just crossed bullishly on the 15 minute TF. OBV fell through the bottom of the ascending channel, which became an ascending wedge, that it's been in since 10/18, but remains higher overall. My expectation is to see price breach the red descending broadening wedge's resistance and, if it does, then the descending dashed red resistance line as it targets $6470 at least. If price happens to breach the local 4H TR's resistance at $6494, then the expectation is for it to target the previous 4H R1 pivot at $6540. 4H RSI is just shy of bullish at 46 and recently bounced off a minor support level. MACD has just crossed to the bearish side of centerline but is curling up which means its bearishness may be short-lived on this TF. OBV appears to be printing a descending wedge which is bullish if it continues to play out as such. Looking at the 4H TF, we can see the local TR in blue. It appears to be printing the LPS for the larger black TR ($6100-$6600). Zoomed in, we can denote the BC, AR, ST, and SOW. Why is the previous drop likely a SOW and not an ST? Because of the volume. We see volume continuing to drop as price rose afterward. The current overnight low should be considered a SOW, as well, if we see the same thing. If it is, then we can expect likely price movement downward as this local TR should be considered distribution. However, if it plays out as an ST, then the odds are increased that the local TR is re-accumulation and we can expect to see likely price movement upward. Lack of upward momentum at this time remains suspect as the consolidating volume will likely see a sudden expansion, so traders should approach any entry with caution. I continue to watch the 1D TR between $6095 and $6587. I believe I mentioned yesterday that the top of the TR was $6384, but that's what I get for hurrying. I apologize for the mistake. Once price moves through the resistance or support of this TR, I will evaluate the movement to decide whether I will enter at that time. Until then, all this little movement is nothing more than noise with a risk that is far too great in exchange for any reward for me. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSD
by Chris_Inks
BTCUSD 15 minute/4H charts (10/19/2018)Good morning, traders. Price finally moved a bit, dropping overnight and breaking through the bottom of the ascending triangle it was printing before finding support at the S3 pivot on the 15 minute TF. I spoke consistently about how I didn't like that the pattern was full of white space and wicks with small candle bodies creating the small horizontal TR within the pattern as it usually indicates that the pattern isn't strong and that often results in it not playing out as expected. Remember, patterns aren't patterns because they look like it, rather there are rules and guidelines that you have to take into consideration as well. So now that price is back in the July triangle, what should we expect? Price breached the descending channel's resistance and is currently sitting under the 15 minute pivot which we have tested as resistance. It is printing a TR between $6350 and $6410. OBV fell to the bottom of the descending wedge and bounced off a previous horizontal support/resistance area. Price needs to breach the descending red line and then the pivot for any hope of moving upward at this time. Based on the current local TR structure, if price heads up then I am leaning toward the possibility of a Spring down to the S1 pivot before it does so. On the 4H chart, we can see another local, albeit a bit larger, TR that price has been trading within since 10/15 that's denoted in blue. Price is sitting on the bottom of it with the July triangle's resistance keeping it from pushing higher at this time. However, we can see a descending broadening wedge printing at that triangle resistance and price appearing to be pushing against it. Traders should notice that the largest black candle shows absorption (long lower wick) as does the next candle. The third candle is a doji and the fourth finally shows some some sell-side strength only to be negated by the following green candle. Finally, the current candle is, again, showing demand so far as witnessed by the long lower wick. As we know, this smaller TR is within the larger TR that has been printing since 9/8 which is denoted in black. If this larger TR continues to play out, then price is currently printing the LPS which is indicative of a further move up and that's shown by the red outline of possible movement. Currently, shorts are sitting at 34,500 and the shorts/longs ratio has increased to 1.6923. With volume as low as it is, if price does move up it is likely to be quite explosive (potential short squeeze) and we may see it fly without the consolidation above the top of the larger TR. The 4H OBV has remained flat throughout the smaller, blue TR, and sits above support. MACD remains bullish and is curled up. If price falls through this blue TR, then I will be looking for initial support at the 4H pivot and, upon a breach of that, will be watching the $6254 area. None of this means that price must necessarily go up, as I continue to warn traders. Trading is nothing more than speculation, which means the only thing you control is how much you lose thereby making risk management the single most important aspect of trading. It is also the one that retail traders rarely give much thought to. However, the current set up does paint a heck of a narrative. For me, I continue to not be interested in entering a trade until price moves out of the larger black TR. This doesn't mean I will immediately go long on a breach of resistance or short on a breach of support. It means that I will evaluate volume and price action at the time that the breach occurs and decide, then, if I am going to possibly long or short a trade. A drop below support may indicate that a terminal shakeout is occurring, or is about to occur. As such, going short at that time, for instance, would be highly risky with most exchanges often showing an inability to fill orders, take profits, or stop losses due to the fast movement of price. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSD
by Chris_Inks
3
Bitcoin and the descending wedgeGood morning, traders. Bitcoin is doing what Bitcoin does lately -- continuing to consolidate. We are getting a good rally from last night's reactionary low near $6400. This morning we can see buying pressure pushing price back up toward $6500. Bitfinex has been carrying a bit of a premium and continues to do so this morning as it is sitting about $50 higher than the other exchanges. This presents arbitrage opportunities for traders with access to the exchange as they are able to buy Bitcoin at a cheaper rate on another exchange and sell it for the premium on Bitfinex. Traders doing so must be careful, however, since transfer times may take their tole as the premium disappears before they are able to sell their Bitcoin on Bitfinex. Currently, we can see price printing a flag suggesting a target of $6500/$6515 upon successful breach of the flag's resistance. This upward progression should bring price to the longer-term descending resistance noted, which began on September 28. Price movement for the past week has printed the large descending wedge seen in the chart and suggests that price may ultimately be more likely to head up and out, than down. The 1H MACD is attempting to complete a bullish cross and RSI has moved out of oversold after last night's sell pressure. We can also see that volume has continued to drop as price dropped, signalling a weakening of the momentum. As noted during our live streams, there are various price gaps on the 15 minute chart up to $6900 that remain unfilled. Therefore, the bias should remain bullish toward $7000. At that point, traders need to carefully watch what unfolds. DXY continues to print a large ascending broadening wedge on the 1D suggesting that we can expect downward progression sooner rather than later. The daily pivot sits at $94.89, and a drop through it would be bearish for the index. The R1 pivot sits at $95.97, and a close above it would be bullish for the index. While the dollar has received some support from the rising interest rate, there are indicators in the economy suggesting a recession is on the horizon. These include the stock market's appearance of distribution and bearish divergences over longer periods of time. As that materializes, generally we can expect the currency to fare worse because there is less attraction to invest in the country. But what does that mean for Bitcoin? It depends on how it continues to react to what is going on in the economy. An interesting short read on this was presented in Bloomberg a couple of months ago (www.bloomberg.com). Generally, the narrative continues to be Bitcoin as digital gold, but traders cannot ignore the reality that it is a very risky asset and money looks for safe havens in times of uncertainty, not increased risk. However, Bitcoin has many things going for it including the fact that it appears to have been in accumulation throughout 2018, OTC continues to grow exponentially, and Bakkt will be coming online next month, as well as the likelihood of a BTC ETF approval before the end of 2019.
BITFINEX:BTCUSD
by Chris_Inks
BTC demand v. supply and the DBWGood morning, traders. After all that movement last night, price ends up right where it started at yesterday's update. It also shows you why I mentioned that I am paying attention to the DBW the most. Price hit the top of that wedge and then dropped back down to find support on the Tenkan line on the 4H chart. As with previous times before, this area continues to print small-bodied candles and/or long wicks on the 1D chart. StochRSI on the 1W is printing a pennant at the 42/43 area suggesting possible upward price movement from where it is at within the next two weeks. I spoke last week of the strong possibility of price just moving sideways for a week or two and that is what it has been doing so far. The 15 Min chart shows price consolidating within the upper-third of the DBW suggesting a likely breakout through the top of the wedge as is expected with this pattern. That doesn't mean that price can't see another strong push toward the bottom of the wedge before it does, though. Doing so at this time would see price possibly reaching $5950. That being said, price doesn't need to drop as it has already recorded four alternating touches to support and resistance. This current ranging in the low-$6000s will continue to try the patience of traders/investors resulting in the "weak hands" selling into the composite operator if this year has been accumulation. "Smart money" is deeper into this pair than it was previously at this price level, just a few weeks ago, suggesting possible accumulation as well. Traders have been making a big deal about the MACD bearish divergences that have appeared throughout this year at the top of the rallies. The reality is that after such a large move up through the end of last year and subsequent strong drop through the beginning of February, these bearish divergences are expected until price levels out as the buy side and sell side trade against each other within a tightening range. Markets tend to return to the mean. That, alone, doesn't guarantee that price continues upward; it only serves as a reality check when people use it as a reason that price MUST go down at the moment. More importantly, traders should take notice that the 1D MACD has been printing higher lows toward the resistance at the highs in May and July, forming an ascending triangle which is a bullish pattern. Since June we have seen price print higher lows, but we do need to see a higher high as well. I am watching for MACD to breach the descending dotted black resistance line within the ascending triangle first. At this time, we can see MACD pulling closer to the signal line suggesting potential exhaustion on the sell side. 1D OBV has been printing a descending wedge, also a bullish pattern, and is nearing the convergence of the support and resistance lines, so a breakout one way or the other is near. As mentioned previously, this could take a few more weeks to play out, but the pattern breakout bias should be upward since the pattern is bullish. And an increase in OBV should lead to an increase in price afterward. I am continuing to watch for a possible SFP (swing failure pattern) at some point, potentially signalling the next bullish push up, similar to what we saw on June 29th and August 14th. This would require that price drop below the September 9th low of $6094.38 on Bitstamp but close above it in the same 1D candle. As always, failure of the June low to hold has me watching $5450 and $5250 as immediate support. Traders choosing to get involved at this level should be aware of the increased risk associated with doing so. Price is holding on support at this time, but it has been here before and as a result there is the very real possibility that price could drop through it if supply outpaces demand. There will be no live stream this morning as I am still not feeling all that well and am just getting my voice back, but I will be streaming tonight at 9 p.m. CST. I appreciate everyone's understanding.
BITSTAMP:BTCUSD
by Chris_Inks
3
FCTBTC Cup&Handle will help to breakout from Descending wedgeFactom is in the Descending wedge and can breakout of it upper edge in the near future. The current price range looks like a solid support, which in the past has been a good reflection of the market decline and has become a turning area for building the recent wave of growth. At this moment, indicators and trend analysis of the 1-hour timeframe chart suggest that Cup&Handle which is supported by Ichimoku clouds will help to break out of the descending wedge which can be seen on the 1-day timeframe chart. This will start a new wave of growth If the price drops below 0.00088, then the development of a positive scenario for this asset may take much longer time and you should follow our updates.
FLong
by Skyrexio
ICX in a descending wedge - looks like a possible break upwards You can see the descending wedge in the chart which it has been respecting and within the next 24 hours or so it will make a decision on where it wants to go outside of the wedge. Generally these wedges see a break up. Volume is decreasing as it's consolidating as you can see from the light red arrow on the volume bars. Initially from the jump it was forming a bull flag which looks to have changed into a wedge. The jump might not be as high as my target there - it may only reach halfway up since bitcoin is nearing resistance. I'm going to set a stop loss at entry if/when the breakout happens Like the analysis if you found this useful.
Long
by crow1980
2
LSKBTC a bit more consolidation before new growth waveAfter an impulse breakthrough in the beginning of the year, Lisk started a downtrend forming a corrective pullback. At the moment the price has fallen to the safe buy zone where the last time a growth wave was started. The price should decrease a bit due to bearish XABCD formation at the chart. however up from the level drawn at the chart there should be a rebound. The market forms a descending wedge, breaking through the upper edge of it will give an opportunity for further growth. If the resistance of 0.00062 will be too strong then the price will go lower till the next support level where it should consolidate and bounce back. in case of this scenario you should buy more in parts around 0.00058. The final stop loss is located around 0.00055 in case of such negative scenario stay tuned to our updates where we will present the best moment to reenter till the breakeven point. Overall, the coin looks stable according to DMI and full of strength to start a growth wave
Long
by Skyrexio
Bitcoin is being very difficult but here's another ideaIt looks like there is a descending wedge (light blue) that occurred with a 4 hour bullish divergence that occurred at around 7300. The bulls did a really good job defending 7300, and the bears were showing a lot of weakness, however, it was on the fence if the bulls could recover from that drop, but they did and right now the bulls control the field. The movements down got rejected by the yellow support line which should be an extremely strong support, extremely strong, because that has been the resistance like for the past 8 months, and the orange line which used to be the support of the symmetrical triangle is now the resistance, and this descending wedge has a price objective that shoots right under, right under 7850. Depending on whether the bulls can dominate the area, depends on whether this recent breakout was a false one or not, because if the bulls get rejected at 7800 or something lower than that, then it is most likely going to be the head and shoulder topping pattern I have been talking about in the last idea. The bulls are trying on this one with a solid possible reversal, and a possible reversal on the daily with a nice bullish hammer candle stick. Key Points: 1.) Daily candle stick shows several bullish reversal candle stick patterns, the first one is a 5 count fractal reversal, the second one is a really superb, strong bullish hammer. It bounced off of the yellow trendline, with a bullish divergence on the 4 hour candle sticks and the bulls have been doing a good steady job at keeping this price up. 2.) There is a bullish continuation pattern, the descending wedge, and it looks legitimate and it is confirmed on the daily with volume; it is also confirmed on the smaller time frames, however on the smaller time frames the descending wedge is much larger. The main problem is that patterns have been failing because we are moving sideways at the moment and we are technically trendless right now, also the market is in a strange place right now as this is a huge decrease in total market cap with some coins virtually at zero and others on the brink of it. 3.) If the descending wedge succeeds then then it is up to the bulls break 7850 with significant strength and penetration for me to say we are in bullish territory, a failure to break through the 7850 levels would mean it would be the right shoulder of the inverse head and shoulder with the neckline (readjusted from before) in purple.
COINBASE:BTCUSD
by CuddlyCuddles
BTC USD Double combo correction with ending diagonal?Maybe this correction is almost over and BTC 0.21% is printing a double combo ending in a diagonal. If so I'd expect one more run down here to stop at the lower trendline and then probably flat for a while before starting the next bull market. I'm waiting to see if we break out here and complete what could be a bull flag . If so I might buy the breakout. If we don't break out, I'll wait to buy at slightly above the lower trendline of the descending wedge .
by brettfb
ICXBTC Cup&Handle and Descending wedge breakoutICX has been oversold for a long time, the indicators show a high rebound probability. On a 30-minutes timeframe there is a bullish reverse indicators and cup&handle formation which is going to be finished soon. On a 1-day scale, you can see the formation of a descending wedge, a pattern indicating the end of a downtrend and the possibility of breaking through resistance via a strong bounce which opens a way for further growth. From current levels, we can jump to the resistance, which is marked on the chart. This will finish the pattern and will indicate a bullish breakout from the long term descending channel. When this happens a regular correction will occur and we will start a swing trade strategy. Once the price consolidates around Fib 0.618 - Fib 0.5, it will be possible to open long position according to the rest targets which are in the Premium channel. We remind you that under the current state of the global crypto market, each position carries a high level of risks. Although this trade recommendation has low risk according to our classification scheme, do not follow emotions and "animal spirit", open only the position you are able to manage and track, use a stop loss. If the market goes below support, then the correct decision will be selling on the rebound and then buy again at lower levels, this will provide an opportunity to sell at previous entry order with profit. Be careful and keep tracking BTC and your opened alt positions.
Long
by Skyrexio
4
WTC/BTC Huge Descending WedgeHuge descending wedge on the WTC/BTC 1D. Looks like convergence will be around early August. Just in time for the $BTC ETF? Setting some buy orders around 92k sats and having a tight mental stop if it is a counter-to-anticipated breakout. However, the chart is somewhat bearish. The Tenkan sen is pretty far from the Kijun sen which suggests we are decently oversold. We are trading well below the Kumo and although the MACD flipped, it is still below the signal line. If you are an investor now is a good time, with all the great June news that was released (www.reddit.com), but I would wait for BTC to break down to set a lower low to begin to accumulate.
WLong
by GladeArchJoe
BNB_Descending Broadening WedgeHello everyone, looking at the 1 day chart we can see a risky trade setup that involves some decent returns. The overall trend has been bearish, but, there is a large potential for a broadening ascending wedge (Bullish formation.) The catalyst? The upcoming BNB coin burn. The entry point will be anywhere in this blue box support zone, especially inside the descending green trend lines. The set up: Buy 1 = $12.10 Buy 2 = $11.80 SL $11.50 Profits 1 - $13.20 Profits 2 - $14 Profits 3 - ??? Risk/Reward Ratio With $12.10 buy : 1:83 and 1:3.1 With $11.80 buy : 1:4.67 and 1:7.33 I know it sounds crazy, but we have some indicators and support levels to support this: 1) The blatant large blue support zone. This has acted as strong support in the past previous runs all the way upto $18. 2) The 1 day Stoch RSI has reached a triple oversold position before reaching above the overbought, and currently sits in the oversold position. 3) The 1 day momentum shows a slight slowdown in sell pressure. 4) MACD sell pressure appears to be lesser than when the price was at $14.50. 5) RSI is very low, around 30ish? Counter arguments to buying: 1) Volume has been declining. 2) MA 100 and 7 bearish cross. 3) MA 25 getting closer to closing below the MA 100. 4) The overall trend has been bearish. 5) BTC uncertainty and crazy volatility. I've bought in the first buy zone and have a second one set up. I'm doing so because the R/R is VERY good here. I'm not saying that we will make a bull run and reach all time highs, but there is a very good chance of at least a temporary reversal here. With that said... *Disclaimer, this is not financial advice. Any positions you choose to buy is 100% your responsibility. What I mean is that you take on all the financial risk as well as all the financial rewards. -May BTC reach mars before Elon Musk
Long
by gendark2
2