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
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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.