DENTUSDT is currently forming a pennant pattern above the significant weekly support level at 0.000590. This pattern suggests a period of consolidation and indecision in the market, where the price is coiling within a narrowing range.
According to Plancton's trading principles, which are widely respected in the trading community, the price's behavior in this scenario may present an opportunity for a new short position. Here's how this strategy might play out:
Pennant Formation: The pennant pattern is characterized by converging trendlines, indicating a temporary pause in the prevailing trend. This often leads to a breakout, although the direction is not immediately clear.
Weekly Support: The fact that the price is hovering above the weekly support level at 0.000590 is noteworthy. This level has historically been a significant point of interest for traders, and it's currently acting as a key price reference.
Liquidity Grab: Plancton's strategy often involves waiting for the price to make a move that seems like it could grab liquidity from one level and reach another. In this case, if the price moves downward from the pennant formation, it could be attempting to reach the weekly support level, thus "grabbing" liquidity from the daily resistance.
New Short Position: If the price does indeed break out of the pennant formation to the downside and heads toward the weekly support at 0.000590, it aligns with the conditions suggested by Plancton's rules for a new short position. This strategy assumes that the price may experience a bearish move from this point, and traders would look to capitalize on this potential downward momentum.
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Follow the Shrimp 🦐
Keep in mind.
According to Plancton's trading principles, which are widely respected in the trading community, the price's behavior in this scenario may present an opportunity for a new short position. Here's how this strategy might play out:
Pennant Formation: The pennant pattern is characterized by converging trendlines, indicating a temporary pause in the prevailing trend. This often leads to a breakout, although the direction is not immediately clear.
Weekly Support: The fact that the price is hovering above the weekly support level at 0.000590 is noteworthy. This level has historically been a significant point of interest for traders, and it's currently acting as a key price reference.
Liquidity Grab: Plancton's strategy often involves waiting for the price to make a move that seems like it could grab liquidity from one level and reach another. In this case, if the price moves downward from the pennant formation, it could be attempting to reach the weekly support level, thus "grabbing" liquidity from the daily resistance.
New Short Position: If the price does indeed break out of the pennant formation to the downside and heads toward the weekly support at 0.000590, it aligns with the conditions suggested by Plancton's rules for a new short position. This strategy assumes that the price may experience a bearish move from this point, and traders would look to capitalize on this potential downward momentum.
–––––
Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.
- ⚫️ Black structure -> <= 1h structure.