XRP Bearish
Updated
From the looks of my chart, XRP was very bullish and did not manage to break the key level (0.23000).
Since it did not break the key level (0.23000) my intended target would've been the next key level (0.20000).
During the early hours of 10/05 we can see a huge bearish engulfing straight down to the next key level which also happens to be our target and key level (0.20000).
Using the price action strategy, we can now see that the intended direction for XRP would now be bearish and my next trade would be a short position towards the next key level (0.17000).
In terms of finding the perfect entry for this trade, I would wait till we see some confirmation by looking for the following:
- Consolidation
- Smaller candles on the upside showing signs of exhaustion.
- Evening stars & Dojis
If my theory is correct we can expect XRP to replicate the last pattern which you can see I have ghosted onto the charts. Consolidation at the key level (0.20000) followed by a sharp bearish engulfing down to the next key level and our target (0.17000).
Since it did not break the key level (0.23000) my intended target would've been the next key level (0.20000).
During the early hours of 10/05 we can see a huge bearish engulfing straight down to the next key level which also happens to be our target and key level (0.20000).
Using the price action strategy, we can now see that the intended direction for XRP would now be bearish and my next trade would be a short position towards the next key level (0.17000).
In terms of finding the perfect entry for this trade, I would wait till we see some confirmation by looking for the following:
- Consolidation
- Smaller candles on the upside showing signs of exhaustion.
- Evening stars & Dojis
If my theory is correct we can expect XRP to replicate the last pattern which you can see I have ghosted onto the charts. Consolidation at the key level (0.20000) followed by a sharp bearish engulfing down to the next key level and our target (0.17000).
Note
Weekly Update, we can now see that the consolidation around the key level (0.20000) if my theory is correct we should be looking for doji's and smaller candles showing signs of exhaustion also expecting a bearish engulfing.
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