Hello Steemians
As part of my journey to learn more about technical analysis, I have decided to start learning to look out for patterns and share with you. Today, what appears to be a "rising wedge" has started to form...
DISCLAIMER
Before I go on with the journey, just want to include a Disclaimer. I am not a financial advisor and hence please do not take any part of this post as financial advice. I created this post because I am interested in cryptocurrency and technical analysis and want to learn more about it. Please perform your own due diligence.
OVERVIEW
This is trading view if you are interested: https://www.tradingview.com/
WHAT AM I SEEING???
A "Rising Wedge" is starting to form. If you are not sure what a "Rising Wedge" pattern looks like, it is basically the 2 purple lines that are drawn above.
Theory goes that if a trend enters the Rising Wedge bearish, then when the trend breaks out of the wedge, the trend will be bearish. What that means is that the price was decreasing when it entered the rising wedge. It hit the resistance (top part of the rising wedge), and goes down to the support (bottom part of the rising wedge), and repeats.
EXPLANATION
There is typically a 5 wave pattern, up, down, up, down and up - and if the next candle is red, then it is likely for a breakout to occur, if the trend breaks out the bottom of the rising wedge, then it is a bearish indicator...
At the moment, it seems like the trend has exceeded the top of the 'rising wedge', so if it stays above the wedge, until the time the 2 purple lines meet, then the "rising wedge" pattern may no longer be applicable. So the next few candles are important...
For the trend to be bullish, the trend will have to break the 'rising wedge' and the next resistance would potentially be the previous high.
Let me know what you think.
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Thanks for your time and have a wonderful day!
