A Spring Or Final Test Of Supply Before Markup? Bulls Load Up.
Updated
BINANCE:MDXUSDT has corrected a whopping 98% from its highs.
It has not followed BTC's bullish rally and currently lingers near a strong demand zone.
If we are to follow Wykoff's Accumulation Schematics, we could be entering Phase C.
Phase A began with Prelim Support / Selling Climax before a 320% Auto Reaction.
This strong rally pushed our resistance zone higher than I would've liked.
Multiple STs then occurred after the SC that ended Phase A.
Phase B also had multiple STs, however price never reached the AR resistance levels.
A "Spring" typically makes a brief dip below the TR support zone, however, this wasn't to be as the bulls stepped in at 5.5 cents, the same low made during the Phase B ST (Secondary test).
We can expect a Test after a Spring (final shakeout/Bear Trap) or a Last Point of Support without the breakdown.
You could even argue that the Spring has already occurred and this is a Test of remaining supply.
Anything is possible.
Test—Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance.
If considerable supply emerges on a test, the market is often not ready to be marked up.
Several reasons exist to be bullish which include-
8 Oscillators recently printed divergence with a bullish hammer to kick off proceedings.
RSI continues to make Higher Lows and Higher Highs.
Huge Volume Profile appears near the Trading Range lows which quickly diminishes going up.
10D/Weekly Stochastic bullish cross up near oversold levels.
Price currently rests above weekly 10/21 day SMA's while nearing a first-ever cross.
On the 2day, the 50 + 200 SMA's inch closer to a first-ever Golden Cross.
The Bulls have shown great determination to hold the 5.5-cent - 6-cent support zone.
Could the price plummet further? Sure. Having a strategy is key.
The bears need a strong volume-supported break with a prolonged period below support to invalidate this idea.
A strong sell-off in the market could also put pressure on the bulls.
What is Phase C?
It is in Phase C that the stock price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked up. A Spring is a price move below the support level of the TR (established in Phases A and B) that quickly reverses and moves back into the TR.
It is an example of a bear trap because the drop below support appears to signal the resumption of the downtrend.
In reality, though, this marks the beginning of a new uptrend, trapping the late sellers (bears). In Wyckoff's method, a successful test of supply represented by a spring (or a shakeout) provides a high-probability trading opportunity.
A low-volume spring (or a low-volume test of a shakeout) indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position.
What Is Mdex(MDX)?
Mdex is an automatic market-making decentralized exchange based on the concept of fund pools. Mdex proposes and implements a dual-chain DEX model based on the Heco Chain and Ethereum. Mdex combines the advantages of the low transaction fees of the Heco chain and the prosperity of the Ethereum ecosystem. With MDEX, users can also participate in dual mining mechanism of liquidity mining and trade mining.
Mdex is committed to building the largest DeFi platform integrating DEX, IMO, and DAO on the Heco and Ethereum.
Current Market Cap - 70m. Circulation Supply - 950.25M
Speculative Setup, DYOR + DD.
Good Luck!
It has not followed BTC's bullish rally and currently lingers near a strong demand zone.
If we are to follow Wykoff's Accumulation Schematics, we could be entering Phase C.
Phase A began with Prelim Support / Selling Climax before a 320% Auto Reaction.
This strong rally pushed our resistance zone higher than I would've liked.
Multiple STs then occurred after the SC that ended Phase A.
Phase B also had multiple STs, however price never reached the AR resistance levels.
A "Spring" typically makes a brief dip below the TR support zone, however, this wasn't to be as the bulls stepped in at 5.5 cents, the same low made during the Phase B ST (Secondary test).
We can expect a Test after a Spring (final shakeout/Bear Trap) or a Last Point of Support without the breakdown.
You could even argue that the Spring has already occurred and this is a Test of remaining supply.
Anything is possible.
Test—Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance.
If considerable supply emerges on a test, the market is often not ready to be marked up.
Several reasons exist to be bullish which include-
8 Oscillators recently printed divergence with a bullish hammer to kick off proceedings.
RSI continues to make Higher Lows and Higher Highs.
Huge Volume Profile appears near the Trading Range lows which quickly diminishes going up.
10D/Weekly Stochastic bullish cross up near oversold levels.
Price currently rests above weekly 10/21 day SMA's while nearing a first-ever cross.
On the 2day, the 50 + 200 SMA's inch closer to a first-ever Golden Cross.
The Bulls have shown great determination to hold the 5.5-cent - 6-cent support zone.
Could the price plummet further? Sure. Having a strategy is key.
The bears need a strong volume-supported break with a prolonged period below support to invalidate this idea.
A strong sell-off in the market could also put pressure on the bulls.
What is Phase C?
It is in Phase C that the stock price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked up. A Spring is a price move below the support level of the TR (established in Phases A and B) that quickly reverses and moves back into the TR.
It is an example of a bear trap because the drop below support appears to signal the resumption of the downtrend.
In reality, though, this marks the beginning of a new uptrend, trapping the late sellers (bears). In Wyckoff's method, a successful test of supply represented by a spring (or a shakeout) provides a high-probability trading opportunity.
A low-volume spring (or a low-volume test of a shakeout) indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position.
What Is Mdex(MDX)?
Mdex is an automatic market-making decentralized exchange based on the concept of fund pools. Mdex proposes and implements a dual-chain DEX model based on the Heco Chain and Ethereum. Mdex combines the advantages of the low transaction fees of the Heco chain and the prosperity of the Ethereum ecosystem. With MDEX, users can also participate in dual mining mechanism of liquidity mining and trade mining.
Mdex is committed to building the largest DeFi platform integrating DEX, IMO, and DAO on the Heco and Ethereum.
Current Market Cap - 70m. Circulation Supply - 950.25M
Speculative Setup, DYOR + DD.
Good Luck!
Note
1 week Oscillators
Related publications
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.