Hi guys, after a heavy sell off we finally got a bounce off 6k which was in my original buy zone (see previous idea) with some great volume to form an initial impulse wave. Now is this the long awaited reversal? This is the signs I'm looking for on the 4H chart:
Impulse wave- We have likely completed wave 1 of an impulse wave up so expect a small cool off period today and a LIGHT retrace which will be our wave 2. Now when wave 3 commences it must breakthrough the first previous support at 8k which is now a minor resistance and hopefully a test of the first major resistance at 10k.
4H INDICATORS
RSI- Bullish divergence on commencement of wave 3 meaning we should have a higher low on the RSI forming an upwards trendline as i have drawn.
MACD- I have circled the initial cross-over on the MACD , on wave 3 commencement the divergence of the MAs should continue and will indicate a likely reversal.
M MA- For the 55 M MA line (slower yellow line) to cross under ALL of the other M MA lines that is the 8,13 and 21 M MAs.
1D INDICATORS
I will be looking for the same things we see on the 4H on the 1D in the NEAR future, the signals will likely fully form after completion of the full impulse wave up (1,2,3,4,5). If we get the signals on the 1D chart we will likely have our reversal.
Feedback is appreciated and please see my previous BTC/USD for more profit targets/resistances.
This is not financial advice