Hello once again guys. After taking a look at the 4h chart for
ETHUSD
, looks like we have a formation of a symmetrical triangle which has been going on for almost two weeks! As many of you probably know, symmetrical triangles forming during a downtrend represents a pause in that existing downtrend, after which the original downtrend would be more likely to RESUME! And after all this time of making our way to test the major down trend we may have to endure another slide downward with lower lows and lower highs....
I hope I'm wrong with this one but it seems all minimum points have been established and we have formed an apex and a base. Additionally, another characteristic that confirms this coiling pattern, as we can see with the white downward sloping line where the volume, we see the volume diminishing as the price swings narrow within the triangle. However this formation will only be valid if we see a noticeably large volume breaking the lower trend line. This would be our signal that
ETHUSD
is going to resume a downward trend down to perhaps the minimum to 475 to 400 range... maybe lower. On the bright side, the consolidation may also continue sideways, which would render the current pattern as less valid.
As usual double check with your own TA and happy trading everyone!
ETHUSD
, looks like we have a formation of a symmetrical triangle which has been going on for almost two weeks! As many of you probably know, symmetrical triangles forming during a downtrend represents a pause in that existing downtrend, after which the original downtrend would be more likely to RESUME! And after all this time of making our way to test the major down trend we may have to endure another slide downward with lower lows and lower highs.... I hope I'm wrong with this one but it seems all minimum points have been established and we have formed an apex and a base. Additionally, another characteristic that confirms this coiling pattern, as we can see with the white downward sloping line where the volume, we see the volume diminishing as the price swings narrow within the triangle. However this formation will only be valid if we see a noticeably large volume breaking the lower trend line. This would be our signal that
ETHUSD
is going to resume a downward trend down to perhaps the minimum to 475 to 400 range... maybe lower. On the bright side, the consolidation may also continue sideways, which would render the current pattern as less valid. As usual double check with your own TA and happy trading everyone!
Comment:
Appears high volume along with breakdown of the triangle signaled our downtrend to resume....
