Although most traders are currently bullish on BCH i am bearish for multiple reasons:
1- Lets start with volume or lack of. Yes we have broken out of the downtrend line but with very little volume. As with any breakout its always important to see high volume to confirm a trend reversal.
2- Divergence-after displaying bearish divergence for well over 1 month before the price drop happened we're yet to see any bullish divergence in any form.
I like to trade with conformation with high volume, candle stick action and RSI confirmation with either bullish/bearish divergence.
I'm not seeing 2 out of 3 of my confirmations so i am still bearish for this reason.
We did see a big rejection wick on the 15th july that would have absorbed a lot of buyers.
I anticipate that a head and shoulders reversal pattern is playing out and with a 6-1 risk to reward its a trade i'm prepared to take.
If we break below the current red trend line then this will help to confirm my bearish continuation.
Happy and safe trading to one and all.
1- Lets start with volume or lack of. Yes we have broken out of the downtrend line but with very little volume. As with any breakout its always important to see high volume to confirm a trend reversal.
2- Divergence-after displaying bearish divergence for well over 1 month before the price drop happened we're yet to see any bullish divergence in any form.
I like to trade with conformation with high volume, candle stick action and RSI confirmation with either bullish/bearish divergence.
I'm not seeing 2 out of 3 of my confirmations so i am still bearish for this reason.
We did see a big rejection wick on the 15th july that would have absorbed a lot of buyers.
I anticipate that a head and shoulders reversal pattern is playing out and with a 6-1 risk to reward its a trade i'm prepared to take.
If we break below the current red trend line then this will help to confirm my bearish continuation.
Happy and safe trading to one and all.