As you can see this looks a lot as V-bottom formation which usually break over the neckline, retests it and then pumps. In this case, since the V is cut at 3/4 from a resistance/support zone I think this will work as "neckline".
To be sure my theory is right we just have to see if once price retests the zone, if it bounces back then resistance has became support and our target might be reached.
The squeeze momentum indicator shows clearly that the V bottom is where most of the downward squeeze was released as it should be in these cases. Currently the upward momentum (confirmed by ADX+DI, not shown here) should be charging before exploding.
Basically if we bounce off the resistance zone you can jump in.
To be sure my theory is right we just have to see if once price retests the zone, if it bounces back then resistance has became support and our target might be reached.
The squeeze momentum indicator shows clearly that the V bottom is where most of the downward squeeze was released as it should be in these cases. Currently the upward momentum (confirmed by ADX+DI, not shown here) should be charging before exploding.
Basically if we bounce off the resistance zone you can jump in.
Kommentera:
Right now BTC is causing a market retracement so I wouldn't know if this pattern was wrong or it's BTC. I hope you followed my advice and exited when price went below the support