I have re-calculated my price target using the price difference between the top of both peaks and the support neckline, then subtracting that price value from the neckline value. However, I am giving a price range to provide a buffer zone for the price to move before trend reversal or trend continuation takes place.
I want to clarify that this price range is not a signal to go long. This is simply our next to watch for a potential trend reversal, and it is also a good target area to close out shorts. Before we can go long here, we need to see strong confirmation of trend reversal.
Thank you all for your support!
One thing I want to note is that there is always the chance for a busted double top reversal. One of the rules for a bust is the price dipping down less than 10% from the neckline (no more than 10%). So we need to pay attention to the $8,370 price, if we are able to fall below this price then the formation bust is most likely not going to happen and the double top reversal is still valid.
For now, let's keep a close eye on the price and be prepared for either situation to unfold!
The reason there is a range is dependent on the timeframe. Let me explain...
On the daily chart, the candle body bottoms out at 9.5k for our neckline.
But on the 4hr and 1hr, the candle body bottoms out around 9.3k.
So like I said in my last update, a break above 9.5k could potentially be signal for a trend reversal and a failure of the double top reversal formation.
For now, I am not worried about the candle wicks breaking above 9.3k. I will only start thinking about buying once we break above 9.5k with confidence.
PM me if you have any questions!