3 WHITE SOLDIERS CANDLESTICK PATTERN

3 WHITE SOLDIERS PATTERN

 

Fibonacci fan explained

 A Fibonacci fan is a chart construction technique used in technical study that uses the Fibonacci interaction to graphically predict support and resistance levels. 

The Fibonacci quantity can be used to explain the proportions in things, from the smallest building blocks of nature, such as atoms, to the most advanced patterns in the world, such as unimaginably monumental celestial bodies. Nature relies on this inborn proportion to preserve equality, but financial markets also seem to adapt to this "golden ratio! 

Understanding Fibonacci fans 

Fibonacci fans are sets of sequential trend lines drawn from a valley or peak by means of a group of views dictated by Fibonacci retracements. To create them, a trader draws a trend line from which to base the fan, which primarily covers the low and high costs of a cost over a defined period of time. 

To achieve the retracement levels, the trader divides the cost difference at the lower and preeminent end by the proportions determined by the Fibonacci series, commonly 23.6 percent, 38.2 percent, 50 percent, and 61.8. percent. The lines formed by connecting the starting point of the base trend line and each degree of retracement make up the Fibonacci fan. 

Traders have the ability to use the Fibonacci fan lines to guess key points of view of resistance or support, in which they could wait for cost trends to reverse. When a trader identifies patterns on a chart, he can use those patterns to foreshadow future cost movements and future levels of support and resistance. Traders use predictions to time their trades. 

Fibonacci Interaction Reversal Strategies 

The Fibonacci sequence begins with the digits zero and one, then is infinitely born with the next number in the sequence equal to the sum of both numbers that precede it (for example, 0, 1, 1, 2, 3, 5, 8, 13, 21, 35, etc.). The number of adjacent terms equates to about 1,618, represented in mathematics by the Greek letter phi (y) and, coincidentally, it underlies a huge proportion of naturally occurring patterns. For unknown reasons, activity costs also appear to act in patterns consistent with the Fibonacci index. 

There are technical studies based on the Fibonacci ratios for the cost and time axes of the charts. Analysts also have the ability to use retracements to generate arcs or fans using arithmetic or logarithmic scales. No one seems to know if these tools work as the stock markets display any kind of natural boss or as Fibonacci indices are used by various investors to forecast cost movements, making them a self-fulfilling prophecy. Be that as it may, key support and resistance levels often tend to happen at the 61.8 percent degree in both bullish and bearish trends. 

To derive the 3 key causes that are typically applied in technical research based on the Fibonacci series, simply discover the quantity of a number in the series to its neighbors. Adjacent numbers generate the inverse of phi, or 0.618, corresponding to a 61.8 percent retracement degree. Numbers separated by 2 places in succession provide a ratio of 38.2 percent, and numbers separated by 3 places provide a ratio of 23.6 percent. 

Fibonacci fans vs. Gann fans 

Gann fans are another form of technical study based on the initiative that the market is geometric and cyclical in nature. A Gann fan  consists of a sequence of trend lines called Gann angles. These angles are superimposed on a cost chart to show probable support and resistance levels. It is implied that the resulting picture will help technical analysts to predict cost changes. 

Gann's admirers are named after their author W.D. Gann. Gann believed that his angles could herald future cost movements based on geometric angles of time versus cost. Gann has been a 20th century market theorist. However, instead of relying on the 1.618 Fibonacci Golden Ratio, Gann believed that the 45-degree angle was the most relevant. Later, Gann's fan draws extra angles at 82.5, 75, 71.25, 63.75, 26.25, 18.75, 15, and 7.5 degrees. Therefore, the Gann fan adds angles based on cost movements in time in the following proportions: 1: 8, 1: 4, 1: 3, 1: 2, 1: 1, 2: 1, 3: 1, 4: 1 and 8: 1. 

Its use is personal. 

You can be based on 45 degree angle. Or Putting from Start of trend to End of trend, Like a Fibonacci Retracement both are valid. 

45 Degree Example: 

Modo Fibonacci: 

Bitcoin and the china crackdown

 

China is at it again, throwing some serious FUD in the markets. Just seeing it all, so i assume that China has caused this drop. Think that worries me a lot, Yesterday we had a very bullish daily candle close. Normally worst case, we would have seen a very weak follow through to like 37 and than after day or 2 seeing it drop again. Thats the worst case i know in my 20 years, after a bullish candle close like we had yesterday. 

But as we can see obviously, price dumped way below yesterdays low even, i am not sure, but don't think i have ever seen a daily candle like this fail like we are seeing today. This worries me a lot. I dont want to spread any fear, just what we are seeing today, is not normal. I also can't judge how bad this China crackdown is. I hear many different opinions from people, some saying its even bullish for the market, long term that is. Because now mining is concentrated for 65% in China i think, with this crackdown, it will be spread more evenly over the world. I do agree with, always better to have things more decentralized 

I do believe long term that's probably better, but Bitcoin does need to survive it short term. How big are the China miners bags? Will they sell everything now? Which will put a lot of pressure on the price obviously, if they sell?. 

These are questions, i don't have the answers for, so i don't dare to say this time if its Whale tricks to make retail sell the lows and then pump the price like they normally do. This is what i kept thinking past 2/4 weeks. 

Now, i honestly don't know. Think if we close at the lows or drop even more, its most likely bad. It hopefully, we see price go up again and safe the daily candle from becoming very bad, then maybe it was just a panic day and maybe we can leave it behind us again. Think for that, we need a close above 34.5/35, that would give me some hope that bulls are not completely scared. 

You know, sometimes i feel confident about a direction, sometimes i dont have my own view then i give levels for you to work with. Rarely i have no idea at all, i am very close to the last one now. Now best thing we can hope for is, that the daily close gets saved a little bit at least. Closing at the lows, think would be pretty bad. To illustrate, closing at the top grey area, would be very bullish. Closing at the one below it, would be decent, would give some hope for bulls. Closing below 34k, think its pretty weak in general. Closing around 32k, think it will be very bad. 

When you look back at past half year (or past years), you know i have my moments i am predicting the lows and highs, i am giving a view that eventually plays out with some delay. I sometimes am completely wrong. This time i assumed was going to be one that with some delay would probably go as i was thinking. But i am a bit scared now, i must admit that :). Because of this weird failure of the daily candle, just never seen it before (of course its as if i have seen 20 years of charts of all the assets in the world). So, if someone has a similar candle failure, please show me in the comment section below, because i have not seen it. 

So in general, think bulls need to hope that today closes at a decent price. Yesterday i said the following: 

Was having a April 2018 feeling since yesterday, very similar, not in shape but in steps. Only big difference are alts though, then they were much stronger, now underperforming btc in this consolidation. 

Past 3 weeks or so was telling some people, that maybe whales are postponing shit, until after June 25th, because of the futures quarter expiration. They did that trick in as well few days after March 2019 expiration, when btc pumped above 4K and did the summer rally. Since it's so close to the 25th, think maybe they keep it in the 38/31 range until then. 

Then shortly after i saw BTC pumped to above 36k even, which made me think okay, this is looking even more like April 2018 now. But todays drop, even more because of the China news, I can't be confident at this moment about the whole idea. I also have a theory on ETH chart, but for that i also need to see today's close be much better than it is now. If so. i will post about that tomorrow 

So for now, I would still be somewhat careful, if it was only the charts and whales, i would not have a problem with these smart money games. But because of the China news, it always makes me nervous when a big country cracks down on crypto. Its the biggest danger that always hangs above this market. Something i kept saying many times since 2017/18, but i dialed that down a bit past year because more and more countries seemed to be accepting/adopting it. But then past 2 months we have seen again, doesn't even matter who says what in what country, another part of the government can decide something else again. Maybe they are all playing games, who knows. We need to see where we are in 5/10 years from now to know for sure. 

So for the bulls, hope today recovers a bit. For the bears, even if this market is already in a bear market, be aware of nasty short squeezes. 

1.ETHUSDT:Watch for a deeper correction

 

     :-The price is testing strong resistance zone for the third time near $2850

Now we can see a potential downward movement with targets $2566 and $2240

Trade carefully!

Thank you and good luck!

2.Binance coin is ready to go higher

 Binance coin is ready to go higher due to the fact that price is trading in triangle and probably can finish soon this way price can break upside of triangle and make new uptrend to resistance level.

3.Btc time to rise again

Btc/Usdt

Btc bounce up from trendline support

!Now we can see momentum green candle broke out the 3rd falling wedge in this triangle pattern

All we need is this 4h candle to close like that for more confirmations

Next target should be test around 38k-39k again as a first resistance and breakout will test strong resistance between 41-42k as a 2nd resistance

*invalidation for this idea breakdown recent low at 34800

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