SKL Forming a "Wedge pattern"
A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect a price series's respective highs and lows.
A wedge pattern can signal either bullish or bearish price reversals. In either case, this pattern holds three common characteristics:
-First, the converging trend lines.
-Second, a pattern of declining volume as the price progresses through the pattern.
- Third, a breakout from one of the trend lines.
Falling Wedge
When a security's price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines are drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may break out above the upper trend line.
When price breaks the upper trend line, security is expected to reverse and trend higher.
Some studies suggest that a wedge pattern will break out towards a reversal. more often than two-thirds of the time, a falling wedge is a more reliable indicator than a rising wedge.
Bull target - 1.190686. I don't believe SKL is going to beat the ATH in the upcoming weekend or the coming week. But there is potential.
Bear target - The price trend keeps going back and forth for the upcoming week.
RSI - 56.51 Perfect for a good run to the upside.
VOL - Like with all crypto the vol needs to increase. Seeing it spike up recently I think that it needs time to consolidate before a good run to the upside.
DYOR. And please leave a comment or any criticism.
A wedge pattern can signal either bullish or bearish price reversals. In either case, this pattern holds three common characteristics:
-First, the converging trend lines.
-Second, a pattern of declining volume as the price progresses through the pattern.
- Third, a breakout from one of the trend lines.
Falling Wedge
When a security's price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines are drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may break out above the upper trend line.
When price breaks the upper trend line, security is expected to reverse and trend higher.
Some studies suggest that a wedge pattern will break out towards a reversal. more often than two-thirds of the time, a falling wedge is a more reliable indicator than a rising wedge.
Bull target - 1.190686. I don't believe SKL is going to beat the ATH in the upcoming weekend or the coming week. But there is potential.
Bear target - The price trend keeps going back and forth for the upcoming week.
RSI - 56.51 Perfect for a good run to the upside.
VOL - Like with all crypto the vol needs to increase. Seeing it spike up recently I think that it needs time to consolidate before a good run to the upside.
DYOR. And please leave a comment or any criticism.
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