The range we are in. Failed H&S into W. Possible range Break-out
Hello again!
Here's the whole clear picture so far:
- We were in a bigger range (20k - 22.5k)
- As soon as we lost 20k (bottom of that range) we broke down to 17600 (which is the daily low of 11th December 2020 - the last red day we printed before the beginning of the new bull market. Those numbers are not random. More on that in another post!!)
- After breaking down we managed to reclaim the bottom of the range and we've been ranging between 20k and 21.6k with the mid of the range being 20.8k
- In fact, 20.8k (the mid of the range) has worked as a pivot point
- It first helped the price form a Head & Shoulders pattern, leading everyone into thinking that we will go much lower once we lose 20k (look at green pattern)
- However, H&S patterns usually do fake breakdowns just to stop all the longs and trap shorts. Then they reverse.
- In fact, H&S breakdown was reclaimed and on top of that we immediately converted the structure into a W bottoming pattern (look at pink pattern)
- 21.6k is the "moment of truth" point. Should the price breaks above I can see us teleporting to 22.5k with the power of millions of short squeezes.
- 20.8 is a very important price level. It worked as a pivot point and it will show us if we are truly going to break out of this range (20-21.6) and move towards 20.5k or we are going back to 20k, potentially even lower. In other words, 20.8k is your invalidation point.
Now look at the daily candle.
My guess is that the new day open (25th June) is going to print its lower wick into the 20.8k before we really try to break 21.6k
Entry 20.8k. Tight stop loss below this. TP either 21.6k or 22.5k
If we lose 20.8 you can short to 20k (or just open long 20.8k and hedge with short at 21.6)
Good luck!
Here's the whole clear picture so far:
- We were in a bigger range (20k - 22.5k)
- As soon as we lost 20k (bottom of that range) we broke down to 17600 (which is the daily low of 11th December 2020 - the last red day we printed before the beginning of the new bull market. Those numbers are not random. More on that in another post!!)
- After breaking down we managed to reclaim the bottom of the range and we've been ranging between 20k and 21.6k with the mid of the range being 20.8k
- In fact, 20.8k (the mid of the range) has worked as a pivot point
- It first helped the price form a Head & Shoulders pattern, leading everyone into thinking that we will go much lower once we lose 20k (look at green pattern)
- However, H&S patterns usually do fake breakdowns just to stop all the longs and trap shorts. Then they reverse.
- In fact, H&S breakdown was reclaimed and on top of that we immediately converted the structure into a W bottoming pattern (look at pink pattern)
- 21.6k is the "moment of truth" point. Should the price breaks above I can see us teleporting to 22.5k with the power of millions of short squeezes.
- 20.8 is a very important price level. It worked as a pivot point and it will show us if we are truly going to break out of this range (20-21.6) and move towards 20.5k or we are going back to 20k, potentially even lower. In other words, 20.8k is your invalidation point.
Now look at the daily candle.
My guess is that the new day open (25th June) is going to print its lower wick into the 20.8k before we really try to break 21.6k
Entry 20.8k. Tight stop loss below this. TP either 21.6k or 22.5k
If we lose 20.8 you can short to 20k (or just open long 20.8k and hedge with short at 21.6)
Good luck!
