SPY LOVERS, BE READY ! This week, I decided to remove some objects I had in the chart history as references, which we’ve been analyzing, to make some space and clean up the chart a bit.
After reaching all-time highs, the price has naturally begun a retracement.
But what’s new in technical analysis?
Let’s analyze the price together:
In this case, I added an ascending channel where the price follows an upward sequence, bouncing between support and resistance.
Here’s the million-dollar question: How much further can the price drop?
If we look at the chart, I marked a very important line in red or maroon color at $575.12, which aligns with a resistance pivot and two indecisive candlesticks with identical volumetric bodies.
Often, indecisive levels are key to how the market makes sudden decisions after an indecisive candle. In this case, if we pay closer attention, the indecisive level marked in maroon color is positioned exactly at the support of the ascending channel. This suggests how far the price might fall, and we could potentially see a rebound. For me, this would be the primary scenario.
But...
If the price breaks through this level, my second scenario would be a drop to the order block. Since this level has acted as both support and resistance in the past, I can validate it as my secondary inflection zone or "Inflection Block."
You might wonder: What on earth is an inflection zone?
As I’ve mentioned multiple times and explained in some of my analysis, inflection zones—or points of inflection—represent moments where there’s a significant change in the price’s direction within a trend, whether in a market, an asset, or an economy.
On a trading chart, an inflection point is the spot where the chart changes direction or marks an important decision.
An inflection zone can also be a historical area on a chart. As we can see, my order block is already being considered an inflection zone because the price has historically made key moves within it. and i called it "Inflection Block" (See the white arrows).
Thank you for supporting my analysis.
TRADE SAFE
Best regards!
Sequences
BTC won´t go for a new ATH. Prices below 52k incoming.Why am I more bearish on BTC than bullish? Why will I be more bullish on BTC after a huge dump? Why do I think that BTC will go to 52k and even lower before we see a new ATH? As you guys know I love to use my sequences from the sequence system. It has proven itself to be very reliable. Sometimes the direction can be unclear when there are two active sequences (one for a bullish- and one for a bearish case). Most of the times the one with the biggest support and the one into the confirmed trend direction will get finished. We are having a bearish sequence since the 1st decision point (dp) got broken with a daily candle close below. Remember that time when everyone was calling for a new ATH and I was calling 62k in Crypto Yams? This bearish sequence remains active as long as 72900ish wick does not get wicked. At that given time, the bearish sequence was standing against the big bullish sequence with the first target at 81k. It was a 1 against 1, a 50/50 scenario. After creating the sequence, the price has three options: 1) finish the sequence 2) invalidate the sequence 3) coming back into the correction zone (purple box) after leaving the .382 of the correction box (blue ray). The price came back one more time into the correction zone after leaving the .382. At that time it was having the option to test the 2nd dp at 58233. A daily close below would activate a second bearish sequence. It tested the 2nd dp to the dollar and broke it some days later. At that given time our probabilities changed from a 50/50 scenario into a more bearish one. I was thinking that two bearish sequences will be enough to go to 50-52k. When price has been at 53k I was sure that we will see another leg down. But this thinking process has been stupid. It is like shorting the bottoms and longing the highs. With the sequence system you are shorting in the area of the "whole correction zone" (purple box) and you are taking profits lower. Trading this system, you are always aware of another pullback into the correction zone. I haven´t been aware of that, it was a mistake. Price came back into the whole correction zone for the 3rd time which gave us a 3rd decision point at 55858. These dp´s love to get tested. If the daily closes below the 3rd dp, we will have a 3rd bearish sequence with targets even lower then the previous activated sequences. However, all of them will bring us into this correction zone for the bullish sequence. Over there it will be the safest to look for longs. Retail isn´t doing that. They are looking for massive longs since we made a new ATH, especially because we are spending soooo much time above 60k. But this isn´t bullish. We are just building and strengthen this bearish foundation (purple box). It is like someone is building a house. Will the foundation be weak for a weak move or will it be strong? The stronger it gets, the more impulsive the final move will become. Market makers can easily sell off in this area while using retails liquidity as exit liquidity, preparing a bigger dump. Market makers can easily buy back at 52k, at 45k, below 40k, wherever they want. They can easily do that. Everyone and his mother is invested in BTC right now. The pain will start at prices below 50k. People will have doubts when we will prepare for something bigger again. Could my bearish idea become wrong? Yes. Just in terms of probabilities it is what makes the most sense to me. Earlier in this article I have mentioned that sometimes it can be confusing to have a bearish sequence and a bullish sequence at the same time. Now we know that we are building a stronger foundation with more bearish sequences and that the trend will support one of those directions. What is the trend saying? Is it strong? Without bearish divs? Is the weekly up without the chance for a bearish convergence? Is the monthly up without a bearish div? Midterm timeframes can not get bearish convergences? You already know my answers for my sarcastic questions while reading this.
GOLD/XAUUSD Trade IdeaMy trading plan is to buy XAU/USD at the H4 timeframe based on the bullish sequence, with a risk-reward ratio of 1:3.
I'll use a stop-loss order at FE 1.618 + 10 Pips (Spread) and set a take-profit order three times further away from my entry point.
I'll monitor the market for any changes in the bullish sequence or external factors that may affect the price of gold.
I'll also manage risk by trading with a portion of my capital, avoiding over-leveraging, and keeping a trading journal.
I'll review and update my plan regularly to ensure its relevance and effectiveness.
BTC _ FINDING ACCESS CODE TO MATRIX (Orange Path) Update 1Next ATL : 22.02.2020
Next ATH: 06.02.2021
Second ATL: 01.03.2025
This is Not A Financial Advice, It is A Study Case For Myself.
I will try to share the development, as simple as I can ;
DAY ONE (on chart) to ATH-1 , we have 325 days (included). So I tried to find a sequence with fibonacci. What I found was ATH-1 to ATH-2 is following 2,618 fibonacci days with some errors, and ATH-2 to ATH-3 1,618 fibonnaci days with some errors. Actual days were different than what is expected with fibonacci number sequences. So digged and tried to find the lateness (gap).
.................(sequence/1,618) =........................ 2,618 / 1,618=1,618 .......................1,618 / 1,618=1
ATH0-ATH1...................... ATH1-ATH2 ................................ ATH2-ATH3 ....................................... ATH3-ATH4
325 .................... 325 * 2,618 = 850,85 .............850,85 * 1,618 = 1376,68 ..................so; 1376,68 * 1 = 1376,68 (?)
325 ..................................... 906 ..................................... 1478
..... 0............................. 906-850,15 = 55,15 days of error...............1478-1376,68= 145,77 days of error
same can be applied to bottoms ;
.................(sequence/1,618) =........................ 2,618 / 1,618=1,618 .......................1,618 / 1,618=1
ATL0-ATL1...................... ATL1-ATL2 ................................ ATL2-ATL3 ....................................... ATL3-ATL4
406 .................406 * 2,618 = 1062,91 .............1062,91 * 1,618 = 1719,79 .............if so; 1719,79 * 1 = 1719,79
406 ..................................... 1153 .................................. 1865,56 (?) ................................. 1865,56 (?)
....................................1062,91-1153 = 90 days of error
How I found the next ATL and Next ATH (numer of days with question mark) ?
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When I sum previous expected ATL with next expected ATL and divide it to error days, I found a fixed number which also aplied to next cycles.
(ATL0-ATL1 ) + (ATH1-ATH2 ) / 55,15 days of error
(406) + (850,85) /55,15 = 22,85
(ATL1-ATL2 ) + (ATH2-ATH3 ) / 101,32 days of error (5 days is lost in chartin this period)
(1062,91) + (1376,68) / 106 = 22,85 lateness secret ratio (silence...)
then next ATH should be ;
(ATL2-ATL3 ) + (ATH3-ATH4 )]
(1719,79) +(1376,68) / secret ratio of 22,85 = 112,46 days of delay.
So expected ATH2-ATH3 is 1376,68 days + 112,46 days = 1512 days = 06.08.2020
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Now bottom ;
(ATH0-ATH1 ) + (ATL0-ATL1 ) has no delays , we accepted them as realized as expected. (to create a base)
(ATH1-ATH2 ) + (ATL1-ATL2 ) / 90 days of error
(850,85) + (1062,91) /90 = 21,24
I assume that 21,24 also can be applied which above 22,85 is happened twice.
then next ATL should be ;
(ATH1-ATH2 ) + (ATL1-ATL2 ) / 21,24 lateness secret ratio
(1376,68) + (1719,79) /21,24 = 145,77 days of delay
So expected ATL2-ATL3 is 1719,79 days + 145,77 days = 1865 days = 22.02.2020
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ATL3-ATL4 same fibonacci expected days and delayed days applied. Since the sequence will follow 2,618 & 1,618 & 1,000
ORANGE PATH (First Version)
BLUE PATH (Update 1)
BLUE PATH (First Version)