DSONIC - Potential spring setup
HI,
A spring is where price breaks below a support level then rises again and moves up, which is also known as false breakout. It is best traded in and uptrend and not in a downtrend.
Here we can see price is in uptrend for few months. The horizontal line 1 is a support line and has managed to support price at bar A and B. On 19th July (green arrow), price broke below this support line on average volume, and the next day it make little progress downward. This created a potential spring and today 22/7/2020 price move back up above line 1 with a wide upbar.
In the chart also there was another spring formation recently (black arrow) that resulted in price moving up following the spring.
Im looking forward for price to go up at least till the recent major high.
Trade at your own risk, comments are welcomed
A spring is where price breaks below a support level then rises again and moves up, which is also known as false breakout. It is best traded in and uptrend and not in a downtrend.
Here we can see price is in uptrend for few months. The horizontal line 1 is a support line and has managed to support price at bar A and B. On 19th July (green arrow), price broke below this support line on average volume, and the next day it make little progress downward. This created a potential spring and today 22/7/2020 price move back up above line 1 with a wide upbar.
In the chart also there was another spring formation recently (black arrow) that resulted in price moving up following the spring.
Im looking forward for price to go up at least till the recent major high.
Trade at your own risk, comments are welcomed
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