BTCUSD Short - Harmonic Pattern shows Bear but Fib shows a Bull
Updated
Hey I'm trying out new patterns to learn the ways of technical analysis. This time using Harmonic Patterns and Fib channels. From what I can see if I interpret if this right, the Harmonic Pattern shows a clear Bear and the Fibonacci Channels show a stronger support for a Bull (due to the more lines that matching up between 23.6% and 78.6% as support layers). I think BTC might go up a little, but as we near (D) from there BTC should be dumping due to heavy resistance.
More analysis coming up soon. If you have a different opinion about this or I'm entirely wrong. Let me know in the comments, I'm stil a student at this!
According the investopedia these are some of the highlights that I followed on these Harmonic Patterns and Fibonacci Channel:
Harmonic Patterns
The price is dropping to A. D is an area to consider a short trade, although waiting for some confirmation of the price starting to move lower is encouraged. With all these patterns, some traders look for any ratio between the numbers mentioned, while others look for one or the other. For example, above it was mentioned that CD is a 1.618 to 2.24 extension of AB. Some traders will only look for 1.618 or 2.24, and disregard numbers in between unless they are very close to these specific numbers.
Fibonacci Channels
Common Fibonacci numbers in financial markets are 0.236, 0.382, 0.618, 1.618, 2.618, 4.236. These ratios or percentages can be found by dividing certain numbers in the sequence by other numbers. A Fibonacci extension requires three price points. The start of a move, the end of a move, and then a point somewhere in between (the pullback). Traders will watch the Fibonacci ratios between 23.6% and 78.6% during these times.
_____________________________________________________________________________________
I'm purely a beginner in technical analysis. Please hit like, follow or place a comment if you wish.
Any of your feedback is my motivation to keep going and to learn more about Technical Analysis!
More analysis coming up soon. If you have a different opinion about this or I'm entirely wrong. Let me know in the comments, I'm stil a student at this!
According the investopedia these are some of the highlights that I followed on these Harmonic Patterns and Fibonacci Channel:
Harmonic Patterns
The price is dropping to A. D is an area to consider a short trade, although waiting for some confirmation of the price starting to move lower is encouraged. With all these patterns, some traders look for any ratio between the numbers mentioned, while others look for one or the other. For example, above it was mentioned that CD is a 1.618 to 2.24 extension of AB. Some traders will only look for 1.618 or 2.24, and disregard numbers in between unless they are very close to these specific numbers.
Fibonacci Channels
Common Fibonacci numbers in financial markets are 0.236, 0.382, 0.618, 1.618, 2.618, 4.236. These ratios or percentages can be found by dividing certain numbers in the sequence by other numbers. A Fibonacci extension requires three price points. The start of a move, the end of a move, and then a point somewhere in between (the pullback). Traders will watch the Fibonacci ratios between 23.6% and 78.6% during these times.
_____________________________________________________________________________________
I'm purely a beginner in technical analysis. Please hit like, follow or place a comment if you wish.
Any of your feedback is my motivation to keep going and to learn more about Technical Analysis!
Note
Note
Elliot Wave and Ascending Channel still seem valid on the long run. Note
Previous images was duplicated, this is the right one: Note
Added som more risk management in case BTC wil drop to 6.4K
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.