DOTUSD - Up or Down?
I vote up. We appear to be creating a fairly neat bull pennant here at the top of our run-up.
This is a VERY simple analysis, using nothing but trendlines and an ordinary fib retracement. However, I find that when I keep it simple, I get the best results. I find that many times, during bullish runs like this, after our first leg up, the 1.68 becomes a very important level to breakthrough for the second leg up. Thus, I've placed my first bullish target around that level. However, should we breakdown significantly, I don't see much support until we get to around $18.50. I will be trading this based on a solid break AND CANDLE CLOSE out of the pennant on the 4hr in either direction.
This is a VERY simple analysis, using nothing but trendlines and an ordinary fib retracement. However, I find that when I keep it simple, I get the best results. I find that many times, during bullish runs like this, after our first leg up, the 1.68 becomes a very important level to breakthrough for the second leg up. Thus, I've placed my first bullish target around that level. However, should we breakdown significantly, I don't see much support until we get to around $18.50. I will be trading this based on a solid break AND CANDLE CLOSE out of the pennant on the 4hr in either direction.
Note
Switching from Heiken to regular candles for a moment and zooming in shows us our trendlines and fibs are looking good and well placed. In the first pink circle we see a classic retest after the breakout, and in the yellow circles we see both our trendline and fib acting as strong (and pinpoint accurate support) 
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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.