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Descending Channel

The Descending Channel Pattern 📈🐂Understanding the Descending Channel Pattern: The descending channel pattern is a price pattern that forms on a chart over an extended period. It consists of two parallel trendlines: an upper trendline that connects the lower highs and a lower trendline that connects the lower lows. These trendlines create a descending channel that slopes downward. Key Characteristics of the Descending Channel Pattern: Slope: The channel slopes downward, indicating a gradual decline in price over time. Support and Resistance: The lower trendline serves as support, and the upper trendline acts as resistance. Prices typically move within this channel. Duration: Descending channels can persist for weeks, months, or even longer, making them suitable for long-term trading strategies. Trading the Descending Channel Pattern: Here's how you can effectively trade the descending channel pattern in Bitcoin: Identify the Pattern: Begin by identifying a clear descending channel on the Bitcoin chart. Look for multiple touches on the upper and lower trendlines. Entry Point: Consider entering a long (buy) position when the price approaches the lower trendline, which acts as strong support. This is often an optimal entry point. Stop-loss: Place a stop-loss order below the lower trendline to manage risk. If the price breaks below this support, it could signal a trend reversal. Take Profits: Set your take-profit levels near the upper trendline, which acts as resistance. This is where you can consider selling your position to lock in gains. Confirmation: Look for additional confirmation factors, such as positive news developments, strong trading volume, or bullish indicators, to increase your confidence in the trade.
Long
by Yaroslav_Krasko
Eur/Usd (EURUSD) -> Trend ContinuationMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️ I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on EurUsd. Since the beginning of 2008 EurUsd has been trading in a long term falling channel and just recently retested the upper resistance trendline of the channel. In confluence with a retest of previous support, now turned resistance, and a retest of the 0.618 fibonacci retracement level, I do expect a trend resumption lower from here. - - - - - - - - - - - - - - - - - - - - I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy. Keep the long term vision🫡
Short
by basictradingtv
41
💱EURUSD - Resistance retest amid DXY growth haltEURUSD is still within a downtrend. On D1 we see the beginning of a reaction to a strong support line. There is a chance that on H1 price could break resistance TA on the high timeframe: 1) if we pay attention to XAUUSD, gold is rising on the background of DXY growth stop. If the latter starts an active decline (news this week), eurusd will give a bullish impulse to 1.08023 2) Against the background of support retest at 1.0635 we see the beginning of correction TA on the low timeframe: 1) Price does not reach trend support as a strong liquid area below 1.0635 (limit support level) is formed, which pushes price away 2) A retest of trend resistance is forming. On a bounce off strong support, price could quite possibly break this area. 3) An impulse to 1.08023 could form on a break of resistance, but if the breakout is false price will form a rebound to support Key resistance📈: 1.0707, channel resistance Key support📉: 1.0635
Long
by AndeWave
6
GOLD → Breakout of global trend resistance OANDA:XAUUSD reverses. The price overcomes several resistances and updates the local high, when retesting the liquidity area, to 1935 If we pay attention to the high timeframe, we can see that the price overcomes the resistance of the downtrend (wedge). The daily candle on Monday closed almost at the daily high, which is a strong signal that with another retest of the previous day's high, the growth may continue. Also, I am very likely to expect growth, but only after a retest of the previously broken support area. That is, in our case there are two zones for buying, it is the zone near the support (liquidity area 1930-1928) and the zone above the resistance 1934-1935. If this line is broken and the price consolidation above the level, we can also buy. Moving averages continue to realize the formed buy signal Support levels: 1928, 1930 Resistance levels: 1934, 1935 I expect growth in the medium term. The price breaks the resistance of the bearish trend and gains the target - the retest of 1950 OANDA:XAUUSD CAPITALCOM:GOLD COMEX:GC1! COMEX_MINI:MGC1! TVC:DXY Regards R. Linda!
OANDA:XAUUSDLong
by RLinda
19
STXUSDT → Price over the wedge resistanceBINANCE:STXUSDT breaks resistance amid bitcoin consolidation. Earlier, a false breakout of consolidation support was formed, which influenced the trendline breakout We see a prolonged consolidation formation in the format of a descending wedge. Yesterday, when BINANCE:BTCUSD began to strengthen on the background of weak positive news, Stack/TetherUS broke through the resistance of the figure. A day later, we see the price consolidation above the line and now, if the consolidation is successfully realized, the price may reach 0.5447 in the near future. Regarding the indicated resistance - 0.5447. This line delimits us from a strong bullish growth. If the coin is able to break this resistance on a retest, then in the medium term we could see a rise to both 0.8779 and 1.1924 Support levels: 0.4371, trend line Resistance levels: 0.5447 I expect growth to the resistance of the range with the subsequent breakout after a small pullback. Regards R. Linda!
Long
by RLinda
11
GOLD → Another false breakout on resistance retest OANDA:XAUUSD is weakening after a resistance retest that ends in a false resistance breakout. Yesterday, in Sunday's XAU idea, I talked about prioritizing a further drop as the dollar is poised to rise further and gold forms a false break of trend resistance Price is back under a strong descending resistance line. Consolidation below this line will form a strong bearish potential. The TVC:DXY forms a retest of 105.00, a fairly strong resistance that holds the price for a long time. This week there are many key news that will affect the market pricing and the $ value, which will give us a medium term outlook for both forex and gold. At the moment I expect a further decline in the price. The first important target is 1916.7, then 1903.8. The second option is important if the fundamental background does not change its direction. Resistance levels: 1928, 1926 Support levels: 1916, 1903 The market is testing the resistance for a breakout, but it is not ready yet, as the fundamental background for gold is still on the side of the bears OANDA:XAUUSD CAPITALCOM:GOLD COMEX:GC1! COMEX_MINI:MGC1! TVC:DXY Regards R. Linda!
OANDA:XAUUSDShort
by RLinda
34
Bitcoin - Pump to 31k soon! (Diamond pattern) Bitcoin crashed to 25k recently, but a huge pump followed immediately after a false breakout of the head and shoulders pattern. Bitcoin was heading down to continue in the downtrend to 21k, but a huge buyer suddenly appeared and sent bitcoin to the upside. Is this a strong reversal pattern? I think so! It looks like Bitcoin is refusing to go lower, which is great news and that's why we need to react to the recent price action and open a long position on futures or buy Bitcoin! It's always extremely important to do an analysis with the Elliott Wave theory to predict future prices. In Bitcoin's case, we have a triple three (WXYXZ) corrective pattern, which you can see on the chart. It's a sign of strength, and this should send Bitcoin to 31K later this year! The diamond pattern looks really interesting; as you can see, the right shoulder and left shoulder are made of parallel channels. The right shoulder is not formed yet, but we will get there. I have to be bullish on Bitcoin as the bulls stepped in, and to make more money, we want to speculate on the price increase until January. I believe October, November, and December will be extremely bullish for the price of Bitcoin! Is this the bottom of Bitcoin? And will Bitcoin continue to rise to 40k and therefore to a new all-time high? This question will be revealed in my next analysis, so make sure you subscribe / follow! This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I share my trades transparently and post trade setups privately. Thank you, and for more ideas, hit "Like" and "Follow"!
Long
by UnknownUnicorn2537518
217
RUNEUSDT → A retest of resistance could break the line BINANCE:RUNEUSDT gives us new prerequisites for further strengthening of the price. Another resistance retest is forming, which can break this zone on the background of local BINANCE:BTCUSD growth Several key elements are marked on the chart. The descending wedge, resistance retest, pre-breakout consolidation - all this can be regarded as a complex signal for a breakout of resistance. On the background of bitcoin's local strengthening, which occurs after breaking out of resistance, this could date a chance for RUNE and in such a case, the price when breaking through the indicated line could head towards 3.04 and give us almost 60% net move. The moving averages formed a strong signal a few days ago, which could be confirmed soon when the price breaks the upper boundary of the range Support levels: 1.722, 1.433 Resistance levels: upper boundary of the wedge, 1.942, 2.015. I expect that on the background of the next retest of the trend resistance the price may break it and start an active phase of strengthening towards 3.040 Regards R. Linda!
Long
by RLinda
13
GOLD → It's a tricky situation. High chance to FB ↘︎OANDA:XAUUSD is moving out of the downside range, but at the same time the DXY reverses and forms a retest of 105.00. The DXY fundamentals are better and there is a higher probability of further dollar gains than gold Note the small chart below (Dollar Index). An important level is marked and we see the price retesting the resistance within one week - a high chance for a breakout and further gains. Gold thus goes beyond the resistance, a correction is formed and if the price does not show a bullish impulse relative to the level of 1916, then we should expect gold to return to the boundaries of the descending range, which will be a false breakout. In this case, the cost of the metal will start to decline again. The market will pick up this maneuver and due to the received liquidity at the false breakout the price may show a strong bearish impulse. But! there is a possibility of a breakout. For this price needs to strengthen above 1916 and above 1919, only then gold can go to 1928. Support levels: 1916.7 Resistance levels: 1919.6 In priority I expect a false breakout of the channel resistance on H1 with the subsequent decline on the background of the dollar strengthening. But there is also a probability of confirmation of resistance breakout with further growth. We follow the price reaction to the mentioned zones. Regards R. Linda!
OANDA:XAUUSDShort
by RLinda
21
GOLD → Market declines in steps - a strong hint OANDA:XAUUSD is moving in steps, gradually updating local lows, which speaks about the current trend. After another resistance retest, which failed, the price returns to the support and under the market pressure breaks the line On the senior timeframe a sideways range is formed and the price is approaching the decisive support, a rebound before the breakout may follow. On the local timeframe we see the breakout of another support line and the price decline to 1905 (at the time of writing the review). Most likely, gold seeks to test the liquidity area below the key low of 1903.8. (False breakout is possible). From this area the market is likely to form a correction to 1908 or to 1912 with the subsequent decline on the background of the downtrend and reaching again 1903 or even to 1889 in the medium term. TVC:DXY does not give preconditions to fall yet and may continue its growth, for which XAU is preparing. Support levels: 1903.8 Resistance levels: 1908.4, 1912.8 I expect a retest of support, but the market will not break this level at the first time, but will form a rebound before a further fall. Regards R. Linda!
OANDA:XAUUSDShort
by RLinda
23
EURUSD → The market is forming limit resistanceFX:EURUSD is testing the resistance of the current trend channel, but cannot break this area. While the TVC:DXY is correcting, the currency pair is forming consolidation The dollar index is declining after the retest of 105.00, most likely the area of 104.00 will give a new impulse, therefore, the forex market will give a corresponding reaction. If the dollar strengthens, the euro will weaken. At the moment we see a retest of trend resistance, the market is forming a limit resistance area at 1.0765 and pushing the price away. The bears are showing their strength at the moment. An important support before the momentum formation is 1.0705, if this line is broken, the market may give a strong impulse. Resistance levels: 1.0765, upper boundary of the channel Support levels: 1.0705 I expect the currency pair to continue to decline, but if the dollar index breaks 104 and heads towards 103, eurusd may try to break the resistance. Regards R. Linda!
Short
by RLinda
11
GBPUSD → Countertrend correction before the fallFX:GBPUSD is forming a local reversal setup, while the dollar, from the opening of the session, is starting to form a correction On the chart below, I pointed out the "double bottom" pattern, which has overcome the base of the pattern. The important level for us is 1.2511. If the bulls hold this area, the price may strengthen to 1.26065. The dollar index has been forming a decline and correction since the opening of the session, which appropriately affects the GBP. But again, we see only local movements, it is not worth talking about a global change of trend now, as everything remains the same. The dollar index has a strong bullish trend, while GBPUSD is changing from an uptrend to a downtrend. The price may soon test MA-50, then MA-200, which may form a false breakout of resistance. Support levels: 1.24868, 1.23725 Resistance levels: 1.26065 I expect a correction to the nearest resistance before a further fall. Regards R. Linda!
Short
by RLinda
6
Didn't see that coming.. | Was there any clues I left unnoticed?NASDAQ:CGC - REKKKT This is not supposed to happen before factor X (luck?). IMO I think I did with the analyzing solid job. Please, no matter how small thing it might be. Let me know in the comments to improve I'll walk you through my thoughts: The Canopy Growth Corporation hit it's bottom on Fri 07/14/23. It fired up those Dank fueled rockets to head outer space with +350% gains. I started to see exhaustion after the first pullback. After this the chart doesn't show the same momentum and there's some divergence that will be reappearing theme the following days. You start to see decline as one would expect after this kind of run. My interpretation is that according to price action, it's starting to form a descending channel pattern. When the double top formed I was convinced the following day would come down crashing. This happened instead. Can I blame bad luck or was there other factors that needed to be addressed? Just like in the game of poker you will run into situations where you lose to one outer on the river. Please leave a comment and let me know what is your point of view. Thanks! I salute you all🫡
NASDAQ:CGCShort
by Crack_Daddy
🥇GOLD - Correction to previously broken support Gold is forming volume density on the resistance side which is pushing the price down. We are seeing a strong bearish trend that continues to conquer the lows TA on the oblique timeframe: 1) Price is in a bearish channel and is aiming for the nearest strong support area in the medium term - 1809 2) Within the near term target, price may reach 1885 within a few days. TA on the low timeframe: 1) A retest of the resistance area sends price down again 2) Support at 1909.85 is broken and a correction is forming to retest it 3) If the price consolidates below this, the market may give a good entry point for selling 4) Medium term target 1889 Key support📉: 1903.81 Key resistance📈: 1909.85, 1914.6
OANDA:XAUUSDShort
by AndeWave
13
💱GBPUSD - A descending triangle will send the price to 1.23680GBPUSD continues to move within a strong downtrend. The price has already lost 5.3% from the high and is ready to lose more. A pattern is forming which could send the price to 1.23680 TA on the high timeframe: 1) Failure of the support at 1.25479 will form a new impulse and a new level 2) A stop at 1.24450 forms a support and 3 days later the price comes back to retest this line. The market is preparing for a breakout and further decline TA on the low timeframe: 1) A descending triangle is formed, which can be interpreted as sellers' pressure on the support area 2) The line is already broken and now either consolidation or retest will be formed. 3) Support at 1.24500 plays an important role for us. If this level is broken and the price consolidates below it, the potential for a possible decline to 1.23682 will be formed. Key resistance📈: 1.25000, 1.25279 Key support📉: 1.2463, 1.24500
Short
by AndeWave
7
💱EURUSD - Downtrend pressureEURUSD is preparing for further decline. After the resistance retest, the price declines again and performs a pre-breakdown retest of the support at 1.0707 TA on the high timeframe: 1) Strong downtrend 2) The liquidity area on the support side will not withstand another retest. Buyers are weak 3) Medium-term target is 1.06350 TA on low timeframe: 1) A resistance retest will force the price to bounce downwards 2) The market is still unable to break the trend resistance and make a new high. 3) A break of 1.0707 support is expected in the long term with a further decline to 1.0635. Key support📉: 1.0707 Key resistance📈: 1.0759
Short
by AndeWave
9
GOLD → Bearish leverage continues to drive the market OANDA:XAUUSD is retesting the resistance of the newly formed descending price channel. A rebound and a retest of the 7-day flat support is formed In the near future, the price may test the flat support at 1916.7 and form a rebound. The rebound may be small, for example, to 1924 to retest the trend resistance. After that the price may continue its fall, breaking the marked support. Globally, the price is in a downtrend. A symmetrical triangle is clearly formed on the d1 chart and we have fundamental prerequisites that the price may break the support at 1902 and head far down. The local situation is simpler. Since the local trend intraday can change several times, our task is to look for key levels to find a good opportunity to open trades Support levels: 1916.7 Resistance levels: 1924 The medium-term outlook is bearish. Most likely, gold may update both local and global minimums on the background of strong strengthening of the dollar ( TVC:DXY ). Regards R. Linda!
OANDA:XAUUSDShort
by RLinda
22