I'm still very new to analysis and not yet actively trading. Just getting practice making calls to see if I'm right. Feedback welcome! I'd love to hear some tips and tricks from more seasoned traders and what you think of my analysis.
Noticed this interesting pattern today. I'm focusing strictly on a 2 week trend and the cloud in this analysis.
1. Yellow box: Tight consolidation pattern coming off the back of a spike. 2. Purple box: Steady downtrend for about 4-5 days. 3. Pink circle: Testing the bottom of the cloud. 4. Yellow box: Another tight consolidation coming off the back of the downtrend. 5. Blue box: Upward momentum bursting through the top of the cloud, followed by some sideways movement before the next spike and cycle.
Where we're at now, we just reached the "Pink Circle" stage. If this plays out like it did around the new year, we'll see some tight consolidation followed by a rise bursting through the cloud.
Will history repeat itself? It will be interesting to find out! I might try to get in if we move into the yellow box of consolidation again.
one thing with crypto is you cant really use previous patterns to predict the future its just way too hard but i see what youre saying here
Treefort
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@zhraan, Interesting... what are your preferred speculation methods when it comes to crypto?
zhraan
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@Treefort, following current chart trends and things that have been confirmed, for example you see a support line and it has been tested at least 3 times, this can help you confirm where it could be going next. also in crypto the news is a big factor. most of the crypto investors (id say like 90%) are incredibly emotional noob traders. if you can catch the news and combine it with technical analysis it will help you a lot but thats easier said than done
Treefort
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@zhraan, thanks for the tips. "the news is a big factor" - yeah that's really proving true this morning haha.