BTC / USD 1 week. I will write the zone algorithm and what will be drawn on the chart depending on the retention / penetration of a certain zone and levels.
A very important area of $ 7,000, all hopes for it. From it, there can be a movement up and the symmetrical HUGE TRIANGLE is drawn. It will be our victory and hope! As working up / down -50/50.
As you can see, from the very beginning of Bitcoin trading, this has already happened more than once.
If we assume that we will not hold this zone - as a result the residual confirmation of the “Bear measured move”.
In 2014-2015, this formation - “Bear measured move” was formed and worked out.
BTC important areas on which further movement depends
The breaking of this zone will also mean - the break of the "Dragon Ridge" (uptrend line) Figures "Inverted Dragon" The first goal for the "Inverted Dragon" is the zone of his "Hump" - the region of $ 3200.
Inverted Dragon. The figure is rare. But almost always fulfills.
CONFIRMATION OF THE FIGURE WILL HAPPEN WHEN:
The uptrend will break. This is the yellow line on the chart (Dragon Ridge)!
If we hold the zone of $ 3200 and the price goes up, the "Triple Top" will be drawn - the target is around $ 7000.
Then you need to observe how the price will continue to behave. Or work out a fall from the "Triple Top" or conquer new heights of price.
The opposite situation, if God forbid, we will not hold the zone of $ 3200 (squeezes and takeaways do not count), I mean if the price fixes for a long time below this zone.
Most traders will see which figure is drawn and what is confirmed.
This will be a complete confirmation of the “Inverted Dragon”. And the second goal (the first area of the "Hump") is "Dragon Tail."
Price will fall in an avalanche. How fantastic are the goals for developing shapes.
As an option, we can’t stop at the last high of the 2014 pump ($ 1,100). It’s even hard to imagine the residual target of Dragon Tail - this is an area of $ 200- 70-80. I do not know what will happen for this, probably the event is equal - to the third world war.
I’ll write a couple of lines about the “Inverted Dragon” figure.
“Inverted Dragon” is a reversal pattern that indicates almost the very beginning of a trend reversal. The formation of the “Inverted Dragon” tells the trader that the mood in the market may change soon and the current trend will unfold.
The figure is a more modified version of the “Double Peak” figure, while signaling a change in the bull market to the bear market. But there is one fundamental difference from the “Double Peaks” figure.
A prerequisite for the formation of the Dragon is a drawn through the head and hump of this model ("Dragon Ridge").
It is important that this is clearly visible on the chart. The plays an almost decisive role in the figure.
“Inverted Dragon” and “Dragon” are not very common on charts. With the correct identification and understanding of the work, you can get a good profit on various time frames.
The “Inverted Dragon” shape and its mirror image “Dragon” are very similar to the “Double Peak” and “Double Bottom” figures, however, they also have significant differences, which will be described below.
The potential profit corresponds to the length of the Dragon Tail, which, as a rule, is equal to the height from the point of occurrence of the to the minimum point of its "Head". Simply put, the entire length of the Tail is your potential profit.
Objectives of working out the figure "Inverted Dragon":
The first goal will be at the level of the last minimum - the level of "Hump".
The second goal will be at the very minimum value of the figure - the level of the "Head" or from the breakdown of the level of the "Dragon Ridge" - all growth from the "Head" to the highest point of the "Paw" is superimposed.
Be smart, act on a situation, not faith. Faith - kills.
There should be a strategy and plan. At the same time, your strategy and plan should be plastic from market situations.
Count in trading all your and others' options for action in advance.
If you trade because of hopes and expectations, and not according to a trading plan, you follow a nervous and unprofitable crowd.
Work according to the short scenario to the level of 7 thousand. Further from the reaction of the level.
It is very important where the price will be fixed after the impulse.
This trend is the 3rd phase of the “bear measured move” (the third component of the bear measured move)
This puncture may turn out to be false. It is very important where the price is fixed. If it fixes above the downtrend, then there is a high probability of a fracture of "3 phases of a bearish measured move" (which has existed for 5 months already).
If the price goes along the trend, then the situation is 50/50 but closer to the continuation of the downtrend. If the price is fixed below the downtrend, then it’s not the time to break the 3rd phase of the “bear measured move”.
As we can see, the zones work out perfectly. You can see the way out of the price from the zone of $ 7000-7600 to the important area of the downtrend that I designated in advance. There is a trend puncture, no more. The only important thing is fixing the price. If there is a consolidation above the downtrend, then this will mean a change in the downtrend. And at the moment we are in a general downtrend. All options for working from different situations, I described in great detail in several trading ideas and videos.