Huge sell off, price has moved down and has lost 87% from its ALL-TIME-HIGH. Price analysis by different analyst suggesting that price will hit the range of 1usd to 3usd. To analyse the current price trend, a chart pattern will be used to determine if the bearish move to the downside will continue or the reverse to the upside.
THE BULLISH GARTLY CHART PATTERN
The Gartley pattern, one of the most traded harmonic patterns, is a retracement and continuation pattern that occurs when a trend temporarily reverses direction before continuing on its original course.
It gives you a low risk opportunity to enter the market where the pattern completes and the trend resumes.The pattern is often referred to as Gartley222.
PREVIOUS MARKET RESULT PERFORMANCE
Break even failure rate: 10%
Average rise: 40%
Percentage meeting price target: Up to 97% (97% reach point B&0.236FIB)
XA - Price rises from X to peak at A. This is typically a large upward move to accommodate the retraces that follow.
AB - Price retraces from the peak A to valley B about 61.8% of the XA move.
BC - After bottoming at B, price climbs to C. The BC move retraces 61.8% or 78.6% of the AB drop.
CD - The final leg of the pattern sees price drop from peak C to the valley at D. The CD move is 127% or 161.8% of the BC move.
If price drops below X on the way to finding D, then the pattern should be ignored. Price should drop or range within the green zone for the completion of the D leg.
Same goes to the oscilator(stochastic RSI) fully oversold.
Technical suggest a little bearish hovering until the D leg is completed. A position should be taken only when price reverse to reach the B leg.
BUY: 7USD up to 9USD
SELL:15USD up to 27usd
STOP LOSS: 3USD
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.