I believe today's abrupt descent needs a more in-depth analysis than what I normally do.
I omit the news and focus immediately and above all on the multiday chart with daily candle.
Yesterday very good closing and a day high at around 52.7K; today, on the other hand, the prices immediately appeared a bit weak and then fell sharply towards 16.00 and touched the minimum in the hourly candle of 17.00.
Today's low has reached 2 levels that you can see repeatedly in my previous charts, for example I take an old analysis from 07/14/2021
these levels are none other than:
- the maximum of the candle that everyone remembers of 05/19/2021,
- 61.80% Fibonacci
At this point what could happen?
1st scenario: My algotrading is a mathematical system and therefore does not "reason" on levels, but on indicators and therefore as expected with such violent movements it will close the long position at the end of the day and enter short.
2nd scenario: graphically, the uptrend does not seem completely compromised yet; to be able to talk about a bearish reversal, in my opinion, it is necessary to wait a moment longer and wait for a daily close below today's low.
If you have any discussion points let's talk about it together, I'd like to have a discussion with you.
Good evening everybody!
I omit the news and focus immediately and above all on the multiday chart with daily candle.
Yesterday very good closing and a day high at around 52.7K; today, on the other hand, the prices immediately appeared a bit weak and then fell sharply towards 16.00 and touched the minimum in the hourly candle of 17.00.
Today's low has reached 2 levels that you can see repeatedly in my previous charts, for example I take an old analysis from 07/14/2021
these levels are none other than:
- the maximum of the candle that everyone remembers of 05/19/2021,
- 61.80% Fibonacci
At this point what could happen?
1st scenario: My algotrading is a mathematical system and therefore does not "reason" on levels, but on indicators and therefore as expected with such violent movements it will close the long position at the end of the day and enter short.
2nd scenario: graphically, the uptrend does not seem completely compromised yet; to be able to talk about a bearish reversal, in my opinion, it is necessary to wait a moment longer and wait for a daily close below today's low.
If you have any discussion points let's talk about it together, I'd like to have a discussion with you.
Good evening everybody!