Not long ago, we were facing a similar structure on Bitcoin.
The right 1H chart, mid-May 2017. We had a triangle structure formed after a bullish trend.
The left 1H chart, NOW. We have a triangle structure formed after a bearish trend.
Some said money flow into Bitcoin affects all technical analysis. I will say each candlestick has its own story in terms of buy/sell, therefore I did not include volume as an indicator in most of my analysis.
Let's compare the volumes in these two graphs by eye-sight. I recommend you ask a kid this question:
Which graph (left or right) has more red bars than green bars in the black box? Answer in 5 seconds.
The left graph is.
The reason is to ask a kid is because we sometimes think much more than kid, simply because we traded many years with our own ideas and experience, kid's thinking is much straight-forward than us.
Back to these charts, there were only go up or down when the candlesticks go toward the vertex. Because we don't know how much of a large volume apply to (buy/sell), we better prepare a two ways setup. (No perfection for any indicator/pattern)
The right 1H chart, mid-May 2017. A breakout occurred with a large buying volume. That candlestick is called a shooting star, followed by a dark cloud cover but its shadow touched the blue S/R zone. The candlesticks are bearish signals indeed. But two hours later, a long bullish candlestick engulfed everything. This dramatic retest formation was pretty unusual. But it happened.
The left 1H chart, NOW. day traders might play nicely within the range 10200 - 11500/11700. Long term investors may consider two way pending orders instead:
If one way (long) order entered, then you delete the other way (short) order, or vice versa.
The right 1H chart, mid-May 2017. We had a triangle structure formed after a bullish trend.
The left 1H chart, NOW. We have a triangle structure formed after a bearish trend.
Some said money flow into Bitcoin affects all technical analysis. I will say each candlestick has its own story in terms of buy/sell, therefore I did not include volume as an indicator in most of my analysis.
Let's compare the volumes in these two graphs by eye-sight. I recommend you ask a kid this question:
Which graph (left or right) has more red bars than green bars in the black box? Answer in 5 seconds.
The left graph is.
The reason is to ask a kid is because we sometimes think much more than kid, simply because we traded many years with our own ideas and experience, kid's thinking is much straight-forward than us.
Back to these charts, there were only go up or down when the candlesticks go toward the vertex. Because we don't know how much of a large volume apply to (buy/sell), we better prepare a two ways setup. (No perfection for any indicator/pattern)
The right 1H chart, mid-May 2017. A breakout occurred with a large buying volume. That candlestick is called a shooting star, followed by a dark cloud cover but its shadow touched the blue S/R zone. The candlesticks are bearish signals indeed. But two hours later, a long bullish candlestick engulfed everything. This dramatic retest formation was pretty unusual. But it happened.
The left 1H chart, NOW. day traders might play nicely within the range 10200 - 11500/11700. Long term investors may consider two way pending orders instead:
If one way (long) order entered, then you delete the other way (short) order, or vice versa.
