FIBONACCI SPEED SUPPORT AND RESISTANCE FAN to identify the possible price trend with support and resistance and additionally A chart pattern called THE DESCENDING CHANNEL.
FIBONACCI SPEED SUPPORT AND RESISTANCE FAN
For every push up(support) there must always be a pull back down(resistance).
A tool in technical analysis that is used for determining potential areas of support and resistance.
This tool, consisting of three trendlines, is created by drawing the first trendline from the most recent low to the most recent high when the asset is in an uptrend,
and from the most recent high to the most recent low when the asset is in a downtrend.
A charting technique (hardly used by traders)consisting of three important diagonal lines that use Fibonacci ratios to help identify key levels of support and resistance. when the price of an asset is near any trendline it confirm the strength of the predicted support/resistance. This type of fib uses both the TIME and the PRICE.
Two FIBONACCI SPEED SUPPORT and RESISTANCE FANS are used here. One used when price moved up from the downward left side to the toward right side and the second one which moved from the upward left side to the downward right side(as indicated with the yellow arrows directions)
The BLUE rectangular shape being the resistance (bull back) and the RED rectangular shape being the support(push up). With the current move in price, it was rejected by a strong resistance lines with intersection of two fib speed resistance line ratio 0.618 and 0.75 and currently pulling back down to likely test a close ratio of 0.618fib whic is $558(close to the drop down wick).
AS SHOWN BELOW:
THE DESCENDING CHANNEL
When price trends upward or downward and fits between two parallel trendlines, the chart pattern is called a channel.
The ETHUSD chart pattern displayed is called A DESCENDING CHANNEL
The price trend leading to the channel can be from any direction.
Its shape looks like a pipe tilted up or down, but not horizontal.The two trendlines should be parallel or nearly so. Both should tilt upward or both should tilt downward.
Price should touch each trendline at least twice as distinct peaks or valleys.Price should cross the pattern from trendline to trendline, nearly filling the available space.
Breakout Occurs when price closes outside the trendline boundary and can be in any direction.
TECHNICALS suggest that price is currently retesting the resistance is brokeout from, which is currently going to turn to a support level at around $558 down to $530.
BUY: current price and hold or place an order from $558 down to $530
SELL: gradually sell starting from $750 up to $1650
STOP LOSS: $375
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.