Points discussed in analysis:

  • Mini h&s pattern on 30m confirmed

    Desc             . broad wedge do break to the upside. Does not mark end of the downtrend but could tempo. break up.

    4h sideways ranging level is trying to hold (red rectangle ) this dates back to beginning of August
    u2028I placed a spot buy at ~$6800 to see if it fills and may add on to it depending on the structure and definition of the candles at 6600 or I may just set a SL at 6725. Sold at $6930 for a 1.8% profit

    4h watch the trend line that’s held thus far ~$6880

    Daily stoch RSI + things come in three’s and my 3rd day bear rule—big fat bearish candle if the prev two have been testing the bulls to see if they’ll defend the gates

    TD             sequential rule 9 on the green turning down
    u2028Daily not 3 white soldiers , fyi

    Weekly rsi still creating lower highs and can’t create a higher high as per prep. Swing

    Monthly hammer

Comment:

"3 candle rule | Rising trendline | Monthly hammer" by trader Cryptosomniac — published August 31, 2018 — TradingView

As mentioned we broke up and out of the descending broadening wedge. Now we’re flagging sideways. Those big wicks at the top show lots of sellers waiting at that price range near $7100.

Comment:

"3 candle rule | Rising trendline | Monthly hammer" by trader Cryptosomniac — published August 31, 2018 — TradingView

The previous daily closed as a spinning top. Depending on the context of the trend these candles can simply be indecision candles or potentially reversals. In this case, I’d say it’s an indecision. I’d expect some sideways movement here at $7000 but I was expecting a faster acceleration toward $6800/6700 as we’re facing resistance in 7000 and have the kijun line/kumo resisting us + the TD sequential printed a 9 of 9 on the green but a weak previous 3 candles. Usually after the completion of 9 candles there’s a 1-4 candle correction. Let’s see if that happens. Stay tuned!

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