EOS Getting Ready to Make a Decision [BEARISH SCENARIO]The Trading-Guru here with an update on EOS. There are three things that stand out on this chart:
1) The bollinger bands squeeze. Indicating local volatility, a squeeze in the BB shows that there is less certainty over the direction of the price and the volatility is dropping rapidly. There is almost no movement anymore in any direction.
2) Decrease in volume. The trading volume has decreased dramatically, showing that people don't know what to expect now on EOS. Everybody holds on to their bags and is getting ready to invest as soon as EOS shows direction.
3) A symmetrical triangle. This continuation pattern shows a constant decrease in volatility, with peaks becoming closer to each other bouncing off the support trendline and the resistance trend line.
The beauty here, is that you don't have to decide yet whether you will take a long or short position. I drew the bearish scenario here with a short position, because for a symmetrical triangle, the pattern defines a continuation pattern. The momentum was negative before the triangle started, so I expect it to be negative after the triangle is completed. I expect explosive volatility as soon as EOS decided its direction, as many people are watching on the sideline right now.
Wait for the move to happen and then quickly enter the trade. If you are afraid that you will miss the breakout, consider becoming a member for a crypto scanner. Crypto scanners will alert you as soon as something happens to a pair based on technical analyses, such as fib retracements, support and resistance zones being hit or ema crosses. Some links to free crypto scanners are in my signature.
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- Trading Guru
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
