BitcoinLong
DESCENDING THIS...DESCENDING THAT. HERE'S BTC REAL OUTLOOK!
Good day traders,
There has been a lot of noise going on about this "Descending Triangle" pattern. Even though trading patterns have been proven to not have a statistical edge, price action is still hard to ignore. Here we can see on the chart that during the 2017 parabolic bull run, a descending triangle formed. Now if we use trading 101, descending triangles are "CONTINUATION PATTERNS". People seem to have got the notion that descending triangles break to the down side most of the time which isn't true.
Now before the previous descending triangle formed, we had a break of the swing low on the daily chart. The daily chart is used to determine long term trends in the market. I have on my chart the inverse fisher indicator to best determine swing lows and swing highs. For it to be determine a full swing high, the line has to cross above 0.5 and back down below -0.5. Likewise vice versa for full swing lows. As you can see during the previous bull market the descending triangle came to fruition after we broke a daily swing low which the descending triangle pattern would have been the best to play out as a bearish continuation.
Since we are in, what my definition would be a bull market at the moment, we have yet to break a daily swing low as exemplified on the chart. So the best conclusion is that this is accumulation for the next move higher. As with all trading, this isn't a guarantee but based on evidence could play out. We still can't ignore price action overall, and large wicks at the blow off point is bearish signs. So we should be ready for whichever move the market is ready to take is.
Stay blessed,
- Meta
P.S. we have yet to test the 200 day MA which is right blow, so we may see a fake out to the 200 MA before continuing higher.
There has been a lot of noise going on about this "Descending Triangle" pattern. Even though trading patterns have been proven to not have a statistical edge, price action is still hard to ignore. Here we can see on the chart that during the 2017 parabolic bull run, a descending triangle formed. Now if we use trading 101, descending triangles are "CONTINUATION PATTERNS". People seem to have got the notion that descending triangles break to the down side most of the time which isn't true.
Now before the previous descending triangle formed, we had a break of the swing low on the daily chart. The daily chart is used to determine long term trends in the market. I have on my chart the inverse fisher indicator to best determine swing lows and swing highs. For it to be determine a full swing high, the line has to cross above 0.5 and back down below -0.5. Likewise vice versa for full swing lows. As you can see during the previous bull market the descending triangle came to fruition after we broke a daily swing low which the descending triangle pattern would have been the best to play out as a bearish continuation.
Since we are in, what my definition would be a bull market at the moment, we have yet to break a daily swing low as exemplified on the chart. So the best conclusion is that this is accumulation for the next move higher. As with all trading, this isn't a guarantee but based on evidence could play out. We still can't ignore price action overall, and large wicks at the blow off point is bearish signs. So we should be ready for whichever move the market is ready to take is.
Stay blessed,
- Meta
P.S. we have yet to test the 200 day MA which is right blow, so we may see a fake out to the 200 MA before continuing higher.
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