Hi again traders! We are within a down wave E on the 4th SuperCycle (SC4E). Yesterday we confirmed the evening star reversal and are on our 1 wave down of 3 toward the E projection of $6,500.
Kraken:XBTUSD is currently in an UPWARDS CORRECTION (numbers are shown on the chart for clarity):
- 1. Ascending triangle (green trendlines), next to last move, wait for breakout upwards to SELL SHORT
○ The main trend is DOWN, but the correction means that our minor trend is UP, but buy with care!
○ We are waiting to jump back in to SHORT SELL all the way down to the bottom of E in the medium term
- 2. Rising on falling volume
- 3. Caught up to and bounced off the 20MA
- 4. C=.618A indicating low buying strength and confirms the triangle
- 5. Hitting upward resistance at the 75% pitchfork line and sandwiched below by the .786 range resistance (pink fib)
- Currently have a bearish divergence on the A/D indicator
- I do not see large buying impulses and I see low volatility while we distribute: do not open a short position until the triangle is confirmed
- I expect some short covering in the next few hours to one day, up to the 50MA and around the .382 or .5 retracement of the A wave down on the white fibs, so we should get a pivot price peak at around $10,560-$10,650. Most
likely somewhere in the middle of the two.
Once the candle noted on the chart forms, we will confirm the entry and post it here! Good luck!
Kraken:XBTUSD is currently in an UPWARDS CORRECTION (numbers are shown on the chart for clarity):
- 1. Ascending triangle (green trendlines), next to last move, wait for breakout upwards to SELL SHORT
○ The main trend is DOWN, but the correction means that our minor trend is UP, but buy with care!
○ We are waiting to jump back in to SHORT SELL all the way down to the bottom of E in the medium term
- 2. Rising on falling volume
- 3. Caught up to and bounced off the 20MA
- 4. C=.618A indicating low buying strength and confirms the triangle
- 5. Hitting upward resistance at the 75% pitchfork line and sandwiched below by the .786 range resistance (pink fib)
- Currently have a bearish divergence on the A/D indicator
- I do not see large buying impulses and I see low volatility while we distribute: do not open a short position until the triangle is confirmed
- I expect some short covering in the next few hours to one day, up to the 50MA and around the .382 or .5 retracement of the A wave down on the white fibs, so we should get a pivot price peak at around $10,560-$10,650. Most
likely somewhere in the middle of the two.
Once the candle noted on the chart forms, we will confirm the entry and post it here! Good luck!
Trade closed: target reached:
We were pretty close with the high being $10,570. We shorted down to $10, 134.60, for a 4% profit. Now we go with the trend upwards, as a correction.
Remember about triangles: falling through the bottom is also a breakout. You can short once it clears the A wave low of $10,300.