WANUSDT formed bullish Shark | Upto 24% expectedFrom mid of the Jan up till 4th feb 2020 the price action of Wanchain took upto 120% bullish move and after hitting $0.3659 we can see some correction waves and these correction moves 1st formed a bullish Butterfly pattern and then another harmonic bullish Shark pattern.
The price action has already hit the spike between 0.886 to 1.13 Fibonacci and completed the last leg of this Shark.
The Dimensions Of The Pattern:
After initial leg (X to A) the A to B leg is retraced between 0.382 to 0.618 Fibonacci and then B to C leg is projected between 1.13 to 1.618 of A to B leg's Fibonacci projection and final (C to D) leg is retraced between 0.886 to 1.13 Fibonacci as required for perfect perfect bullish Shark and now we are entered in potential reversal zone of this bullish Shark pattern, now we can expect bullish divergence at any time which will lead the priceline between 0.382 to 0.786 Fibonacci projection of C to D leg and this should be our potential sell zone.
The Bearish Signals Are Pulling Back The Priceline In PRZ Level:
Even though after hitting the spike in potential reversal zone the price action has already projected in sell zone but the indicators are still strong bearish and the priceline is likely to make another bearish move to enter in this PRZ area which will be another chance to take the long position from here.
The moving average conversion divergence is turned strong bearish and stochastic has given bear cross from the overbought zone and these signals will lead the price action to hit the potential reversal zone again.
The most optimistic bullish signal we have is a simple moving average with time period of 100 is already in the potential reversal zone to provide a strong support to price action to have a bullish bounce from here and hit the sell zone soon.
Buying And Sell Targets:
As per Fibonacci sequence method we can set our targets as below:
Buy between: $0.2711 to $0.2555
Sell between: $0.2854 to $0.3173
So this very short term 4 hour based chart trade can produce upto 24% profit.
Stop Loss:
The potential reversal zone area which is up to $0.3173 can be used as stop loss or we can also use 100 simple moving average for this purpose in case of complete candle sticks closes below this level.
I will be keep posting more potential trading ideas for educational purpose on different assets as soon as will receive any trading signals.
