Just to recap for the folks that are finding this Idea just now, its the extension of older ideas so to learn more click the link below to go back to the very first chart.
1. We called the reversal on 4-11
2. Then the EPIC short squeeze from the Shorts ATH pumped us to 480 and into our target zone within a day (TZ 470-490)
3. We consolidated just below the target zone before climbing up farther to 528 which is when we noticed the rounded bottom and formation of the cup.
4. We saw momentum slow down completely which indicates to us that this round bottom is going to be a or of corse there is always the possibility that it is nothing and it's going to be a trap haha but thats the risk/reward and in this case the reward is significantly greater than the risk, that's why the exists.
5. As we form the handle this is the most critical time, the stronger the handle the quicker the reaction.
SOOOO how strong is this handle? Well let me first say that a handle can look all sorts of ways parallel lines, short, long, wide, narrow, sloping, u-shaped, v-shaped you name it. But they all show decreasing and price action should always be able to be drawn between two lines.
In this case with Ethereum , we have in my opinion the strongest of handles THE SYMMETRICAL TRIANGLE! Why is it the strongest? Because 1.It fits the characteristics we need, and 2. It's awesome to trade because of its defined shape and predictability.
Price action is coiling up like a wound up spring and we can break out of this triangle with a nice pump.
Remember to wait for the breakout and look for to return. Also remember this is my personal educated option regarding my own personal portfolio, this is not trading advise,it's educational, please do your own research if you wish to trade.
Price target is $660-$690
If you want to put a stop, put your stop around $460 so you don't risk getting stopped out. It's likely we are going LONG!
Like it if you like it, and comment if you have questions, I'm happy to answer.
*****Link to first idea in thread*****
This is just a quick warning sign that I see a potential Head and Shoulders forming on many major coins in the market. BTC, ETH, NEO are a few that I've looked at. If we don't make it above the peak of the head and we complete the right shoulder to move past the neckline to the downside then my stop loss will likely be triggered. Keep a watch on the 510 ish level if we break below 508 we have the potential to take a corrective move down to 470-450.
Okay so the Head and Shoulders I warned about earlier has completed so here is what I see happening now... The H&S has a rising neckline which typically indicates that the pattern will not retrace to its full potential. I do expect a bearish correction but we have a few weaker support lines to remember. 1. Is the target line from the inverse H&S right around the $484 mark. Then we have the 50 EMA and the 100 EMA's to offer support. I say weak support because those levels have only been tested once maybe twice so they are not as strong as we'd like, but the way I see this scenario moving forward is displayed by the chart above. I think I called the Cup and Handle a bit early. I do this a lot, I like to be predictive in my analysis, otherwise whats the point right? It does us no good to recognize patterns after they have formed. We want to look for what to expect so that we can react appropriately when the time is right. So what I see now is that the Head of the Head and Shoulders pattern (light red) looks to be the real top of the cup forming the Cup and Handles neckline. I have extended the cup to be bigger to reflect this. Then I see the head and shoulders being the transition that forms the handle. Remember, the handle can retrace to 50% of the cup before it is no longer valid. I still see a C&H forming here I think I was just a bit early calling the neckline. If we retrace to the full potential of the H&S then we will form a perfect handle for that larger cup and then we should have enough momentum to leave the HUGE symmetrical triangle that is forming between the long-term trend lines. I have changed the color of the target to Yellow because I want you to remember that this is a Potential C&H, it is not yet a true C&H. We don't trade until we have confirmation. I have changed the "Potential head and shoulders target" to an actual target since that pattern has formed. Only time will tell, but I still have this strong feeling that the bottom is in and we are witnessing its formation in the C&H pattern! like this post, if you agree, and I'll keep stalking these bottoms like a bird of prey.