This pattern, the "W" -double bottom is a continuation AND reversal pattern we've been seeing on lower TF since the rally from $3.5K, it was only a matter of time until we started seeing them appear on higher TF ( fractal ).
I am BULLISH until proven otherwise.
Some (tentative rules) for ID:
Entering the “W” Pattern
(A - B) The pattern begins at an impulse move to the downside, usually 10% (+/- 6%)
(C) PA will then move to a high between the .382 and .5 FIBONACCI RETRACEMENT
Looking for a CANDLE BODY CLOSE above the .618 FIBONACCI RETRACEMENT
(D) If no.’s 2 and 3 are confirmed, you are looking for two entry points on the:
.618 FIBONACCI RETRACEMENT (golden pocket)
.818 FIBONACCI RETRACEMENT (W entry)
(E) Target 1 is the 1:1 FIBONACCI EXTENSION from AB
(F) RE ENTRY - the .786 and .618 are RE ENTRY TARGETS
(G) Target 2 is the FIBONACCI EXTENSION of BE
Rules are a WIP -but as more and more of these are ID'ed, the rules for entry get better and better.
-JNY
I am BULLISH until proven otherwise.
Some (tentative rules) for ID:
Entering the “W” Pattern
(A - B) The pattern begins at an impulse move to the downside, usually 10% (+/- 6%)
(C) PA will then move to a high between the .382 and .5 FIBONACCI RETRACEMENT
Looking for a CANDLE BODY CLOSE above the .618 FIBONACCI RETRACEMENT
(D) If no.’s 2 and 3 are confirmed, you are looking for two entry points on the:
.618 FIBONACCI RETRACEMENT (golden pocket)
.818 FIBONACCI RETRACEMENT (W entry)
(E) Target 1 is the 1:1 FIBONACCI EXTENSION from AB
(F) RE ENTRY - the .786 and .618 are RE ENTRY TARGETS
(G) Target 2 is the FIBONACCI EXTENSION of BE
Rules are a WIP -but as more and more of these are ID'ed, the rules for entry get better and better.
-JNY