The latest important turnkeys from ETHUSD marketOleg Alexandrov
Let’s read the story from ETH chart.
1/ Entering the downward trend stage after breaking down the previous balancing wedge.
2+3 formed the bottom line of the new balancing wedge.
4/ SLKT and formation the top line of the new balancing wedge.
Why balancing wedges are important?
They help you to divide the market into stages. It is like building the map for price movements. When you have a map, it is become easier to plan your trading activity. Placing trades around the borders of the wedges is a rational activity as you reduce your risk in this way. Also, Chart gives more clear messages if the price is going to break or reject.
Let’s go further.
5/ Minor FOMO
6/ Minor ND
7/ Minor SLKT at the top of this bar.
This 5+6+7 sequence of signs of weakness is telling you that price is not going to break higher. That is why bar 7 developed into a wide red movement with closing on the lows. In this way, we got a new local zone of weakness for the balancing wedge, and the touchpoint for the resistance line.
What is now and next?
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