US30: Price Action Sign of a Long Bull/Bear Run

11 Jul

Timeframe: 1-Hour Chart
Bullish Market Bias

Big Lesson: Towers Bottom Pattern with Long Congestion of Small Candles

1. After the break of the Bearish Trendline (in red dotted line), price action rallied, then retraced.

2. A tall red, bearish candle formed to drop down into the S&R Zone.

3. The candles went into long congestion for hours along the Zone as a means to build up their energies for a big move.

4. A tall, green bullish candle bounced from S&R Zone to create the appearance of a Towers Bottom. This is a continuation pattern that lead to an excessively LONG bull run after Jerome Powell's Federal Reserve talk earlier today.

Three Confluences: Bullish Market Bias on the 1-Hour timeframe for the most profitable trades to be bullish ones; Towers Bottom that is a continuation pattern to the upside; and a Volume Spike.

*Next Time: Watch for and identify Towers Bottom/Towers Top patterns with lots of small candles in congestion between the two towers (from a tall red and green candle) as a sign that a long Bull/Bear Run is in the making.