A follow up on my busted symmetrical triangle pattern from a few weeks back. A few key things to note:
1) The breakout I thought I was tracking on ZEC was actually the impending bitcoin breakout.
2) The pattern was invalidated as soon as it dropped below the pink trendline. This should have been a sell signal into bitcoin and the reason we use technical analysis as a clue to what the market could do next.
3) After the bearish break, it was best to look for an exit into bitcoin upon retest of the now resistive pink trend line. This provided the opportunity to not miss the Bitcoin move heard round the world, so long as you entered at or below the initial buy zone in the green box.
4) I remain biased for a breakout upwards. But we have to let the chart develop more to confirm this. We need to see a break of the upper resistive trendline of the triangle with volume and conviction before we can assume an uptrend of ZEC will start against BTC.
Furthermore, the pink trendline should provide the first level of resistance following a breakout to serve as a very short term target for swing traders.
Side note: trading ZEC with a stop loss into bitcoin while trading inside this triangle could be very costly. I would recommend using stops in Fiat or stable coins. Feel free to like this idea if you agree!
1) The breakout I thought I was tracking on ZEC was actually the impending bitcoin breakout.
2) The pattern was invalidated as soon as it dropped below the pink trendline. This should have been a sell signal into bitcoin and the reason we use technical analysis as a clue to what the market could do next.
3) After the bearish break, it was best to look for an exit into bitcoin upon retest of the now resistive pink trend line. This provided the opportunity to not miss the Bitcoin move heard round the world, so long as you entered at or below the initial buy zone in the green box.
4) I remain biased for a breakout upwards. But we have to let the chart develop more to confirm this. We need to see a break of the upper resistive trendline of the triangle with volume and conviction before we can assume an uptrend of ZEC will start against BTC.
Furthermore, the pink trendline should provide the first level of resistance following a breakout to serve as a very short term target for swing traders.
Side note: trading ZEC with a stop loss into bitcoin while trading inside this triangle could be very costly. I would recommend using stops in Fiat or stable coins. Feel free to like this idea if you agree!
