ADAUSD Completes Double Top Pattern
Updated
Important things to note:
ADA has retraced to 2.51 completing the double top pattern (M pattern) as I previously mentioned it would.
The retracement confirms where ADA is heading, to 2.0
It is likely to make a stop at 2.2 and retrace a bit creating a new pattern which will tell us more.
BTC has retraced and created a new lower high telling us the correction is still ongoing.
BTC will likely close near 42826, if it creates a wick lower it will us another target to look for.
Set alerts at 2.2 and 2.0.
Great time to enter ADA using dollar cost averaging.
Important Dates to Take Note of:
ADA Summit Sep 25-26 2021 (likely to produce more important dates)
As you know, I do not like to give concrete targets until there is some form of confirmation. That is how I trade and that is my style of TA, so it is reflected in what I post. That being said, ADA has completed the double top pattern (the M) and retraced to 2.51 completing the pattern. This retracement also lets us know that a fall to 2.0 is confirmed as of now. This can always change if there is a strong impulse buy at 2.2 which produces a higher high (it will be reflected in BTC as well). The retracement we get from that point will tell us if there will be further drops coming. The pattern is likely to take a stop at 2.2 and produce a small amount of retracement. Again, we are waiting for the impulse buy that creates a higher high. This will signal the correction is at an end. But like I said before, BTC is likely to continue correcting for a couple weeks so we will see where it ends. A fall to 42826 will mean a correction of about 20%. Normally corrections retrace about 20-30%. A fall to 38K would mean a correction of about 25% etc. We will see if a wick is produced letting us know what to look for. I would set my alerts for 2.2 and 2.0. That is all the information we have at the moment. Any further movements will be likely to produce signals and patterns letting us know where things are headed. If you are in at a higher price and do not have the money to dollar cost average all the way down, do not worry. ADA will create far higher highs in the coming months because there is no sign that the bull market is over. If you have the money to dollar cost average down, you are probably having a great time hearing this news. Again, you want to build your portfolio by acquiring assets at discounts. So, this isn't a bad time at all for you. I will keep an eye on ADA and continue to update you all accordingly. Thanks again!
Also, it is worth mentioning that TradingView has reached out to me and offered me very kind words, and showed me some support. I thought that was very nice of them and it was very unexpected. Though, I never planned for any of this to happen at all. I was constantly making charts for myself and my friends and some of them suggested I post them publicly. I never imagined any of this would happen, if I did, I would have waited until I had a bit more free time LOL. However, it makes me really happy to know that people are learning from my charts and hopefully it will encourage you all to learn technical analysis for yourselves! In a couple weeks I will have more time to make the educational content you have been asking for, and I will likely chart a wide spectrum of assets. Thank you again for all of the support, it means more to me than you know!
Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time.
Again, I apologize for having less time to post at the moment, but that will change in a couple weeks.
I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it.
Tell me what you think?
This is not financial advice. DYODD.
ADA has retraced to 2.51 completing the double top pattern (M pattern) as I previously mentioned it would.
The retracement confirms where ADA is heading, to 2.0
It is likely to make a stop at 2.2 and retrace a bit creating a new pattern which will tell us more.
BTC has retraced and created a new lower high telling us the correction is still ongoing.
BTC will likely close near 42826, if it creates a wick lower it will us another target to look for.
Set alerts at 2.2 and 2.0.
Great time to enter ADA using dollar cost averaging.
Important Dates to Take Note of:
ADA Summit Sep 25-26 2021 (likely to produce more important dates)
As you know, I do not like to give concrete targets until there is some form of confirmation. That is how I trade and that is my style of TA, so it is reflected in what I post. That being said, ADA has completed the double top pattern (the M) and retraced to 2.51 completing the pattern. This retracement also lets us know that a fall to 2.0 is confirmed as of now. This can always change if there is a strong impulse buy at 2.2 which produces a higher high (it will be reflected in BTC as well). The retracement we get from that point will tell us if there will be further drops coming. The pattern is likely to take a stop at 2.2 and produce a small amount of retracement. Again, we are waiting for the impulse buy that creates a higher high. This will signal the correction is at an end. But like I said before, BTC is likely to continue correcting for a couple weeks so we will see where it ends. A fall to 42826 will mean a correction of about 20%. Normally corrections retrace about 20-30%. A fall to 38K would mean a correction of about 25% etc. We will see if a wick is produced letting us know what to look for. I would set my alerts for 2.2 and 2.0. That is all the information we have at the moment. Any further movements will be likely to produce signals and patterns letting us know where things are headed. If you are in at a higher price and do not have the money to dollar cost average all the way down, do not worry. ADA will create far higher highs in the coming months because there is no sign that the bull market is over. If you have the money to dollar cost average down, you are probably having a great time hearing this news. Again, you want to build your portfolio by acquiring assets at discounts. So, this isn't a bad time at all for you. I will keep an eye on ADA and continue to update you all accordingly. Thanks again!
Also, it is worth mentioning that TradingView has reached out to me and offered me very kind words, and showed me some support. I thought that was very nice of them and it was very unexpected. Though, I never planned for any of this to happen at all. I was constantly making charts for myself and my friends and some of them suggested I post them publicly. I never imagined any of this would happen, if I did, I would have waited until I had a bit more free time LOL. However, it makes me really happy to know that people are learning from my charts and hopefully it will encourage you all to learn technical analysis for yourselves! In a couple weeks I will have more time to make the educational content you have been asking for, and I will likely chart a wide spectrum of assets. Thank you again for all of the support, it means more to me than you know!
Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time.
Again, I apologize for having less time to post at the moment, but that will change in a couple weeks.
I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it.
Tell me what you think?
This is not financial advice. DYODD.
Note
I should mentioned that since there was retracement, I do not think this is going to happen quickly. It is likely to be dragged out, but make sure you set your alerts.Note
ADA will test 200MA next on the retracement. If it can pass through, it will likely test resistance if it has enough bullish momentum. If it is able to pass through, that very bullish. If it does not pass through, it will get rejected and the price will get spiked down. That being said, BTC is still creating new lower lows and will likely retrace to 46k.Note
I should mention that only a strong impulse buy and consolidation at a support is likely to signal the end of this pullback (it is likely to happen very fast). We saw BTC had an impulse buy which was immediately denied. It is only a matter of time before BTC finishes the correction so the impulse is coming. Right now all my targets are the same as they have been since I made the roadmap until I see otherwise. Right now, all I see is a bear flag and price level testing. You have to keep an open mind right now, because despite what anyone else says, no one knows exactly when this will end, we have to take the signs and signals that are given to us each time and make a judgement call based on those facts. Again, I have a worst case scenario of 2.0, and a price target of 3.25 once the correction completes. We will see what happens. Don't get caught up in the mess. I would not be short term trading during a correction. I would be buying.Note
BTW if you are wondering why I am waiting on BTC, its because I am basing its movements on the 3 drive pattern. We have 1 more low from BTC until I will consider that the impulse buy is likely to occur. However, we don't know when that low will happen. That is just how I see it at least. In case you guys are wondering why I am setting low targets when everyone is screaming we are done. But hey, maybe I'm wrong, we will see one way or another.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.