On the , we can see that it has flattened out, as the momentum has died during this consolidation. is also decreasing, which is typical to see during flag consolidations, so the indicators are essentially confirming the flag action on the chart. That doesn't necessarily mean that a downside break is certain. Currently, there appears to be a high probability of a downside break, but I'm not here to "predict" whether or not it's going to break to the downside. That's not what analysis is all about. We identify patterns, and trade the breakout. Whether it breaks to the upside or the downside doesn't matter. I'm going to make money either way, and here's why. I can see that inside of the , there also appears to be a weird formation that is taking shape. So, perhaps these fags break to the upside, and they fulfill the pattern instead. Do you see what I mean? That's why we always WAIT FOR THE BREAKOUT! Personally, I would rather see a breakout to the downside, because I think it will be more violent, and I will be able to make more money at a faster rate.
Here's how Magic plans to trade this flag. The moment it breaks to the downside, I will short it, with a stop loss just above the bottom of the flag, with the intention of seeing BTC retest the 6000 level. I will unload 1/4 of the position, at each 1/4 interval on the way to 6K. If a reversal signal emerges anywhere in the middle of that trade, I would unload the entire short. On the upside, I will wait for a breakout above the black , which represents the top of the . Sure, I could go long at a break above the green , but the upside is minimal with that trade. A break above the black would be much more substantial. From there, I would expect a retest of the blue , which represents the neckline of the pattern. That's my entry point, for a long side trade. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
one million charts formation...make your own calls
The question is where they will buy again at 6000 or go lower?
And just do not forget the reason for the growth of BTC were forks, now they are not. The price then from August to launch BCH was around $ 2500-3000. Target?