On the 15th of June , TRXUSDT exhibited a climatic price action which has been followed by an increasing price with low volume.
For clarity : Climatic price action ( buy climax or sell climax) is a period in the market when the dominant trend usually seems to be over powered . This is shown by sudden volume spike with low effect . This occurs because the dominant trend exited their positions ( in this case sellers became buyers ) hence taking the opposite side of their initial position.
Since trading is a zero sum activity, these sell orders automatically become buy orders in order to exit the position aiding the short term rallies that follow climatic action seen as buys . This at times is called bull traps .
Support and resistance alternation is a common term and knowledge in technical analysis .
With the 61.8% Fibonacci level coinciding with the support turned resistance zone around 0.075 price level, this is a great confluence for a sell continuation on TRXUSDT.
In addition, we have a bearish flag pattern also calling for sells.
With these, I do be on the lookout for a sell opportunity around the highlighted resistance zone which should be confirmed by any of the reversal candlestick patterns , indicator divergence or any of the reversal signals .
Feel free to share your thoughts in the comment section
For clarity : Climatic price action ( buy climax or sell climax) is a period in the market when the dominant trend usually seems to be over powered . This is shown by sudden volume spike with low effect . This occurs because the dominant trend exited their positions ( in this case sellers became buyers ) hence taking the opposite side of their initial position.
Since trading is a zero sum activity, these sell orders automatically become buy orders in order to exit the position aiding the short term rallies that follow climatic action seen as buys . This at times is called bull traps .
Support and resistance alternation is a common term and knowledge in technical analysis .
With the 61.8% Fibonacci level coinciding with the support turned resistance zone around 0.075 price level, this is a great confluence for a sell continuation on TRXUSDT.
In addition, we have a bearish flag pattern also calling for sells.
With these, I do be on the lookout for a sell opportunity around the highlighted resistance zone which should be confirmed by any of the reversal candlestick patterns , indicator divergence or any of the reversal signals .
Feel free to share your thoughts in the comment section