BTCUSD TrapsOleg Alexandrov
Study this PNF chart (mixed data from 5 crypto exchanges).
Note columns [1 and 2]. They both:
- red wide down-columns
- pushing price down from top-line of the bullish channel
- has an increase in volume (bearish change in character
What are the inner workings behind them?
In point  market faced resistance seen by extra-high volume up-column. And after SLKT-Trap  above round number 9k, the price declined to the bottom line of the bullish trend channel. Also, this decline tested the line of breakout  plotted after the demand surge column .
So, this decline from Trap-Above-9k to 8300 knocked out many FOMO-buyers who entered longs during 10 days from the 13th to the 23rd of January. Note the Bullish Change in the Zone . When the volume on down-columns is INCAPABLE to reach progress, but the volume on up-columns starts to reach higher highs – this is a positive change and the signal to resuming of up-trend.
Now let’s turn to the most recent action. These recent big volumes on bars can represent the buyers entered into Trap-Above-10k. The move  locked them in losses. So, if the current market will develop the same way as in the 20-26/Jan (very likely), then breakout buyers should prepare for fixing their losses. What I am confident in – the green zone (made by crossing of SFDB line  and the bottom line of the uptrend-channel) will produce notable support.
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.