Bitcoin Cash Update: Descending Right Triangle...Bearish
Here is my revised chart labels for Bitcoin Cash. The descending right triangle pattern is a terminal bearish pattern that happens at tops. The bottom white line is a horizontal line that now connects the bottoms of the price bars. The top white line connects the price tops and is in a descending slope. Together, the two white lines trace out a descending right triangle.
The means to calculate the minimum downside is to draw a line parallel to the bottom white line of the right triangle. When this parallel line (dotted) meets the apex vertical point, that's the minimum downside target. In this chart, it's $300.
I've also added the EW counts. We finished wave 5 in an explosiong and now the requisite abc (red) is underway. Wave c should end at or near the $300 zone.
Here is a didactic link explaining descending right triangle patterns:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:descending_triangle_continuation
If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
BTC Wallet - 19gHMJc9wi9KkP47wokz8y4cFNgz1kAAUE
ETH Wallet - 0xf83641dbf1a53498eae6d0d568c969790da48a36
LTC Wallet - LU1mEw1LHvffoWf9VDEVdP7Day4jv6VLqu
EOS Wallet - 0xf83641dbf1a53498eae6d0d568c969790da48a36
Legal Mumbo Jumbo: This is only my opinion, make of it what you wish.
Heh, last night I sold most of my "slow moving" Monero and put it into BCH and forgot to put in a stop loss (don't drink and trade). Hahahaha oh well. Great job nailing that Monero call btw.
Sorry for the loss on BCH. More calls to come!
Thanks. Every loss is a lesson though! I've started taking notes on all my trades, what I was thinking what I did right, what I did wrong, etc etc and it's been helpful. Your TA has been so helpful in bolstering my own, so keep on rocking!
XRM was a nice surprise to wake up to today and see my investment recouped. Sometimes I kick myself for doing only a +30% limit sell on trades like that, but I get too emotional if I don't. Starting to see such crazy spikes in alt-coin, thinking I might do higher % limit sells.
As always great prediction Haejin! I also think Bitcoin Cash current peak was at 800+. The few days spike was caused mainly perhaps by Poloniex being late in the bandwagon to be able to open its doors for Bitcoin Cash trading. Things are now settling down and prices a bit going down.
Thanks for the awesome post, i believe in learning in my losses. and thanks for @haejin humbly explaining the situation!
My lesson from BCH was that I did not catch the descending right triangle forming! I was overly myopic on the symmetrical triangle and by having moved/redrawn the lines, that should have triggered me to be aware! Lesson learned for me too!
That's what happens when you have to paint the house at the same time;)
Thank you @haejin it is a great experience since I am new at this stuff will follow a lot of your lead. ;)