TROY BTC - Rectangle Bottoms Tutorial and TradeRECTANGLE BOTTOMS TUTORIAL
A Rectangle Bottom is a short-term bullish reversal pattern. A decrease in volume often precedes this formation.
In Bull Markets, these patterns breakout to the upside 85% of the time.
A Rectangle Bottom is preceded by a downwards price trend. Price action will compress between two horizontal trend lines.
Price will bounce between the two horizontal levels like a ping pong, generally while volume rises. The average time for a Rectangle Bottom to play out is 60-80 days.
We can see that in this example. Notice the volume spike in mid-May that lead very quickly to the breakout.
We can measure our Target Price from the breakout one of two ways.
Method One: Measure the difference between the Highest High and the Lowest Low in the pattern. Add this difference to the top horizontal trend line.
Method Two : Measure the length of the Rectangle pattern. Flip it on it's side to calculate the next significant target. While this may sound a bit far-fetched,
Bulkowski himself even states in 'Encyclopedia of Chart Patterns' that that method serves as a convenient rule of thumb.
Rules for Trading a Rectangle Bottom:
1. Wait for the breakout! Place your trade after price closes outside of the rectangle and trade in the direction of the breakout.
2. Often a Rectangle Bottom presents the perfect chart pattern to range trade. Look to place shorts at the top horizontal resistance and to go long near horizontal support.
3. Watch for volume to increase after 30-45 days of price consolidating in this formation. Rising volume is a good sign of an impending breakout.
Advice for this Trade Setup
1. Play the range opportunity. Look to long near horizontal support and sell your position as price moves up towards horizontal resistance.
2. Be careful if trading the Rectangle Breakout itself. As you can see from the previous formation's breakout, price moved on high volume and momentum in the span of a Daily Candle.
3. High volume candles near support can often indicate potential entry zones.
Troybtcshort
Troy might suprise us after news ^^there are 3 major resisstances
1-0,00436
2-0,005
3-0,0057
I think(hope) we will crush them soon with some volume.
TROY/BTC TA Update (Two Potential Bullish Pattern?)TROY/BTC
TROY is starting to make a move again to come up retest the downward trend-line resistance.
This key trend-line acted strong bases to kick the price down to Lower Lows before. If TROY fails to break this line,
I'm expecting a potential retest of previous Low and potential form a double bottom and finally try to break this bullish pattern to the upside.
Take note the RSI hits extreme oversold conditions that will give buyers interest to enter the market.
TROY/BTC: Downtrend channelTROY is actually in a downtrend channel.
Breakout from the downtrend Channel means we have potential chance for an Uptrend.
BUY 72-84
