Hello traders of tradingview! I would like to thank each and everyone of you for supporting my last chart i posted.
Please if you haven't yet already go check that chart out i have it linked at the bottom it is titled Psychology of a
market cycle. Please also make sure to LIKE and FOLLOW for more VALUABLE content!
What i expect is a slow gradual decline in Bitcoin's price ultimately finding support around $19,500 where
i would expect Bitcoin to bounce from that level back up to recent local high around $21,800's. I would be looking
to short $21,800 back down to about $20,000. At that point Bitcoin will have started to form a visible bearish pennant . I would
expect yet again another retest of trendline resistance at or around $21,000 creating a defined bearish pennant .
How to short the breakdown? 2 different ways i would short this trade setup.
1. For the best risk to reward ratio you could enter a short position at the top of the trendline resistance when Bitcoin is nearing
the apex of the bearish pennant . Place a stoploss at or around $22,000 using low conservative leverage and patiently wait for
the breakdown.
2. The other way to short this is by shorting the breakdown. Which means you would wait till Bitcoin approaches its trendline support
on its 4th test of trendline support it will likely breakdown as long as the apex of the bearish pennant is no more than a few days away.
Enter your short using low leverage and place stoploss above trendline resistance.
BEARISH PENNANTS
Bearish Pennants are simply the opposite of the Bullish Pennant . Bearish Pennants are continuation patterns that occur in strong downtrends. They always start with a flagpole – a steep drop in price, followed by a pause in the downward movement. This pause forms a triangular shape, known as the Pennant . There is then a breakout, and the downward movement continues. Traders look to enter short trades on a break below the pennant .
KNOWING THE DIFFERENCE BETWEEN PENNANT PATTERNS AND TRIANGLE PATTERNS
Pennant patterns are very similar to triangle patterns, but there are some important differences between a crypto Pennant and a crypto triangle that should be acknowledged in order to trade either pattern successfully.
These are the key differences to note:
A Pennant pattern has to be preceded by a strong up or down move that resembles a flagpole. If there isn’t a flagpole, then it's a triangle and not a Pennant .
A Pennant tends to form a shallow retracement (typically less than 38% of the flagpole). A deep retracement is indicative of a triangle rather than a Pennant .
A Pennant is characterized by the continuation of the upward or downward trend.
A Pennant is a short-term pattern that is usually completed within one to three weeks. A triangle pattern usually takes much longer to form.
Please if you haven't yet already go check that chart out i have it linked at the bottom it is titled Psychology of a
market cycle. Please also make sure to LIKE and FOLLOW for more VALUABLE content!
What i expect is a slow gradual decline in Bitcoin's price ultimately finding support around $19,500 where
i would expect Bitcoin to bounce from that level back up to recent local high around $21,800's. I would be looking
to short $21,800 back down to about $20,000. At that point Bitcoin will have started to form a visible bearish pennant . I would
expect yet again another retest of trendline resistance at or around $21,000 creating a defined bearish pennant .
How to short the breakdown? 2 different ways i would short this trade setup.
1. For the best risk to reward ratio you could enter a short position at the top of the trendline resistance when Bitcoin is nearing
the apex of the bearish pennant . Place a stoploss at or around $22,000 using low conservative leverage and patiently wait for
the breakdown.
2. The other way to short this is by shorting the breakdown. Which means you would wait till Bitcoin approaches its trendline support
on its 4th test of trendline support it will likely breakdown as long as the apex of the bearish pennant is no more than a few days away.
Enter your short using low leverage and place stoploss above trendline resistance.
BEARISH PENNANTS
Bearish Pennants are simply the opposite of the Bullish Pennant . Bearish Pennants are continuation patterns that occur in strong downtrends. They always start with a flagpole – a steep drop in price, followed by a pause in the downward movement. This pause forms a triangular shape, known as the Pennant . There is then a breakout, and the downward movement continues. Traders look to enter short trades on a break below the pennant .
KNOWING THE DIFFERENCE BETWEEN PENNANT PATTERNS AND TRIANGLE PATTERNS
Pennant patterns are very similar to triangle patterns, but there are some important differences between a crypto Pennant and a crypto triangle that should be acknowledged in order to trade either pattern successfully.
These are the key differences to note:
A Pennant pattern has to be preceded by a strong up or down move that resembles a flagpole. If there isn’t a flagpole, then it's a triangle and not a Pennant .
A Pennant tends to form a shallow retracement (typically less than 38% of the flagpole). A deep retracement is indicative of a triangle rather than a Pennant .
A Pennant is characterized by the continuation of the upward or downward trend.
A Pennant is a short-term pattern that is usually completed within one to three weeks. A triangle pattern usually takes much longer to form.
