BTCUSD. 07 Jan 2020 updateOleg Alexandrov
What is on background
In the previous overview in private group, I wrote:
buyers still have better odds. I will not be surprised if BTCUSD will produce an attempt to break out above 8k soon.
As expected, after NS (1), the DB (2) appeared. Chart told us, the market is going to break out above the violet line (resistance line of the wedge).
(3) Breakout effort (pure demand)
(4) Hidden weakness.
Why bar 4 is weak? Because:
- it has pure closing far from highs
- the highest volume on the chart. Too much activity on up-bar represents the potential FOMO instance. The breakout was too obvious for majority, and many traders opened longs. That is why price becomes vulnerable to make a step-down.
What is next?
The supply zone from 8k level is clear. Bulls need many efforts to struggle through 8k and settle above it. So far, we have not enough signs to reverse into the bearish team.
I propose to act in the following plan:
Yes, You Can Become a Professional Chart Reader
To build success in any business, you should rely on things that really work.
In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.
Download free books, to understand how can you apply the Laws and convert charts into profitable setups daily!
Enter your email to Download books
No spam is guaranteed.