Does Algorand have hidden potential that's about to be released?
Hi Guys
Quick disclaimer please do your own research and do not trade based on my opinion; this is not professional advice. Let's get going:
CHART OVERVIEW
Here is a daily chart for ALGO/USDT on Binance. I've marked out specific points which could be pointing towards a Wyckoff Reaccumulation Pattern. The pattern has not be completed so it can very well fail but if it plays out here's what can happen.
Analysis
This pattern has a number of phases I'll briefly go through, the preliminary supply, this point marks the entry of the professional or "composite man" as Wyckoff put it, big financial operators who have identified an valuable asset and want to add as much of it as possible to their bag. This phase they are attempting to shake out investors in order to pause the uptrend, once they shake enough out, a short sharp up thrust occurs resulting in a "buyers climax".
At this point their is an "automatic reaction" sending the price plummeting. After this the composite man (CM) will establish resistance points and support points in with secondary test (ST) in order to create a trading range in which to encourage selling from the public and accumulate as much of the asset from them as possible. Their will be a major Upthrust (UT) and then a laboured long decline all the way to the bottom of support in order to significantly shakeout small investors.
Once the bottom is reached their is a "Spring" all the way out of the reaccumulation zone, a few tests will be made to make sure their is enough demand and strength to continue the uptrend, once a significant "Sign of Strength" (SOS) occurs with a high volume uptrend a small shakeout at the high resistance points occur and after the bullish uptrend continues.
What do you guys think, is this possible? Thanks for taking the time to read this.
Quick disclaimer please do your own research and do not trade based on my opinion; this is not professional advice. Let's get going:
CHART OVERVIEW
Here is a daily chart for ALGO/USDT on Binance. I've marked out specific points which could be pointing towards a Wyckoff Reaccumulation Pattern. The pattern has not be completed so it can very well fail but if it plays out here's what can happen.
Analysis
This pattern has a number of phases I'll briefly go through, the preliminary supply, this point marks the entry of the professional or "composite man" as Wyckoff put it, big financial operators who have identified an valuable asset and want to add as much of it as possible to their bag. This phase they are attempting to shake out investors in order to pause the uptrend, once they shake enough out, a short sharp up thrust occurs resulting in a "buyers climax".
At this point their is an "automatic reaction" sending the price plummeting. After this the composite man (CM) will establish resistance points and support points in with secondary test (ST) in order to create a trading range in which to encourage selling from the public and accumulate as much of the asset from them as possible. Their will be a major Upthrust (UT) and then a laboured long decline all the way to the bottom of support in order to significantly shakeout small investors.
Once the bottom is reached their is a "Spring" all the way out of the reaccumulation zone, a few tests will be made to make sure their is enough demand and strength to continue the uptrend, once a significant "Sign of Strength" (SOS) occurs with a high volume uptrend a small shakeout at the high resistance points occur and after the bullish uptrend continues.
What do you guys think, is this possible? Thanks for taking the time to read this.
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.