Is it possible to predict when the trend movement will be over? It could help us to fix profit at the right time and exit from a market which starts a movement against our trade.
This example is a good one explaining how we can predict trend reversals. This setup will be in the future in any markets and any timeframes. You should know how to use it properly because it will help you to take the right decision.
So, let's start!
The price made an attempt to break 8000.00 resistance level . We got a bearish candle after that confirming that buyers did not have the power to push the market higher. The market had formed a new swing high and the price moved back below the resistance leve . We got a bearish divergence between the price, RSI and MACDhistogram. It became the 1st signal telling us about the trend reversal.
After that, the price continued the sideways movement and gave us a new swing high. This new swing high allowed us to change the bearish divergence into the doublebearish divergence which made the trend reversal signal stronger.
At the same time, we got two swing highs at the same level, which allowed us to talk about a double top pattern - a trend reversal chart pattern. When the price had broken the signal level of the double top , this pattern was confirmed as a reversal one.MACD histogram and lines had confirmed the further downward movement and we saw the falling to lower support zones.
We got a strong bearish candle with the long tail reaching 6000.00 support level , but with close price at 7000.00 support level. The price moved sideways one more time and made an attempt to move above SMA50 in order to confirm the bouncing from 7000.00 level and continuation of the uptrend
* #innerpreneur #venturecapital #socialmedia #socialmediamarketing #marketing #marketingdigital #digitalmarketing #startup #startups #startuplife #techstartup #kickstarter #indiegogo #tech #technology #entrepreneur #entrepreneurs #entrepreneurship #business #businessman #businesswoman #businesstips #smallbiz #smallbusiness #advice #fridayfeeling #mobile #coff - 1 hour ago