Hi Everybody,
I hope you have not lost a lot due to BITMEX and Donald Trump COVID contraction.
We will review briefly what is known as Island Reversal pattern on BTCUSDT 1D chart.
1. We can easily identify an Island Reversal at the end of maybe one-year BTCUSDT trendline.
2. The pattern occurs when two different gaps isolate a cluster of trading days or even weeks.
3. Also we can see a pattern of increased volume during the island which support the existence of the pattern.
4. The appearances of island reversal can be a big change in the market trend (turn BTCUSDT to bearish market) according to Fibonacci retracements.
5. BUT, keep in mind that the Island Reversal is constructed on the idea that the two gaps will often not be filled soon and here part of the gaps has filled. So we'd better pend the island until a week or two ahead to see where prices will head to.
6. BUT, remember that there are many debates around the island reversal and its strength. some believe that this pattern occurs infrequently and gives poor performances.
What do you think? do you agree or disagree? I would be very pleased to have your idea in comments below.
=> DO NOT TRAD ON THE IDEA UNLESS YOU HAVE YOUR OWN CONFIRMATON. <=
I hope you have not lost a lot due to BITMEX and Donald Trump COVID contraction.
We will review briefly what is known as Island Reversal pattern on BTCUSDT 1D chart.
1. We can easily identify an Island Reversal at the end of maybe one-year BTCUSDT trendline.
2. The pattern occurs when two different gaps isolate a cluster of trading days or even weeks.
3. Also we can see a pattern of increased volume during the island which support the existence of the pattern.
4. The appearances of island reversal can be a big change in the market trend (turn BTCUSDT to bearish market) according to Fibonacci retracements.
5. BUT, keep in mind that the Island Reversal is constructed on the idea that the two gaps will often not be filled soon and here part of the gaps has filled. So we'd better pend the island until a week or two ahead to see where prices will head to.
6. BUT, remember that there are many debates around the island reversal and its strength. some believe that this pattern occurs infrequently and gives poor performances.
What do you think? do you agree or disagree? I would be very pleased to have your idea in comments below.
=> DO NOT TRAD ON THE IDEA UNLESS YOU HAVE YOUR OWN CONFIRMATON. <=