Looking back at the previous analysis published on the 28th of August 2019, where we talked about the impending descending triangle chart pattern which is yet to be completed with more and more consolidation inside it.
On the 2hours time frame, the price of BTCUSD which is still consolidating inside the descending triangle chart pattern has gradually formed a bullish gartley chart pattern.
This pattern has been explained a lot of time but we will still go through the process step by step.
Below are the steps to follows with the use of Fibonacci retracement ratios and extension ratios:
Extensively we have 5 different legs to look out for and they are X,A,B,C and D legs.
XA Price rises from X to peak at A. This is typically a large upward move to accommodate the retraces that follow.
AB Price retraces from the peak A to valley B about 61.8% of the XA move.
BC After bottoming at B, price climbs to C. The BC move retraces 61.8% or 78.6% of the AB drop.
CD The final leg of the pattern sees price drop from peak C to the valley at D. The CD move is 127% or 161.8% of the BC move.
NOTE:
If price drops below X on the way to finding D, then the pattern should be ignored.
A bounce back up to test the retracement ratios only price has gotten to the D leg and has reversed back to the upside.
Resistance 1: $9896.61
Resistance 2: $10023.55
NOTE: price must get to the D leg at $9487.17.
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice
This pattern has been explained a lot of time but we will still go through the process step by step.
Below are the steps to follows with the use of Fibonacci retracement ratios and extension ratios:
Extensively we have 5 different legs to look out for and they are X,A,B,C and D legs.
XA Price rises from X to peak at A. This is typically a large upward move to accommodate the retraces that follow.
AB Price retraces from the peak A to valley B about 61.8% of the XA move.
BC After bottoming at B, price climbs to C. The BC move retraces 61.8% or 78.6% of the AB drop.
CD The final leg of the pattern sees price drop from peak C to the valley at D. The CD move is 127% or 161.8% of the BC move.
NOTE:
If price drops below X on the way to finding D, then the pattern should be ignored.
A bounce back up to test the retracement ratios only price has gotten to the D leg and has reversed back to the upside.
Resistance 1: $9896.61
Resistance 2: $10023.55
NOTE: price must get to the D leg at $9487.17.
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice