The SPY is forming a bearish diamond reversal pattern just below critical trend resistance from the larger trend. If we create a bear-spring pattern at this larger trend resistance marked with the dotted green line, or if we simply reject down from it, then we can assume a high likelihood of breaking the diamond to the downside.
Of course, naturally, if we form...
The price created a falling wedge on the daily timeframe and had a nice breakout from it and from the weekly resistance (21.20$)
On the daily timeframe, the price is creating a diamond pattern after a rejection form the 22.25$
How to approach?
For a long scenario, the price needs to have a breakout from the Diamond pattern and 4h resistance and retest it as new...
Coin found resistance with a wick above the 2 Hour UBB, now testing the 2-hour MBB as a sharp consolidation across the indices has commenced. Patterns and Mirrors, Coinbase is a great example of symmetry in the markets pricing mechanism as the left and right side of this Reversal Diamond, when the right half is inverted, are defined by dueling cosine and tangent.
BTC found resistance at the 2 Hour MBB after a setting a 2 Hour Lower Low. Upon the first test to the downside the 50 SMA offered support, the second test broke the level but found demand just below.. BTC's market cap currently rests at 1.14T. Scouting reversal patterns after the 15% move off the top.
The 1.272 is the Square Root of Phi, The Golden Mean, (1.618). This classic extension target was the spot where price found 8 Hour Support, setting up a demand zone between the 1.236 and the 1.272. Now I will be allowing the next pattern to develop, and then a new model of supply and resistance will present itself. Diamond Patterns can be either reversal...
Putting the Fixed Range Volume Profile to work shows price found short term support at the Point of Control. The Lower Trend-line and the Diamond Reversal Pattern Break .786 offered demand for the wick to the upside.
The Euro had a bit of a rally on Friday however the United states dollar showed sudden pressure on the Euro mid day during US session. This sideways action has formed a clear bearish diamond on the 4H / 240 time frame. Im expecting EUR/USD will test lower support levels next week. The favorable support is 1.1500, we shall see next week but keep an eye on this...
BTC needs 43,600 to the upside for a convincing 15 minute trend change. Support below projected to be found at the .236. For now price is digesting the .35 -.382 zone (64.9 - 28.6k retracement), working through the Diamond Reversal. Dot Plot eve as all eyes turn to interest rates at 2:00 PM EST.
