تعليم
QLINK 30% POTENTIAL GAIN
A little delay in posting:
Looking at the entire chart the obvious pattern is a symmetrical triangle being in play. The bottom of this triangle was tested for the 3rd time on 5/10. This is an important pattern to take into account if debating placing a buy order at this time because it shows minimal risk is at play. Currently price is 1923 and the bottom of the triangle is at 1820 which is approximately 5% risk. To protect against this pattern breaking down, a stop loss would be considered at around 1790. As will be explained below, a new elliot wave sequence started at around 1800 and a complete retracement of wave 1 would invalidate the sequence as well as break the triangle pattern . If that happens, then get out.
The first low and high were rather quick as QLC 0.26% found its range on Binance. Thereafter, we saw a long rounded bottom pattern (or cup n handle) which is drawn out in yellow. The rounded bottom pattern almost reached its full potential for a breakout before being halted by the resistance of the triangle pattern .
The uptrend and breakout of the rounded bottom look to fit the proper measurements of a elliot wave sequence. The first wave had a decent run followed by a 62% retracement which is normal. The third wave failed to eclipse wave 1 by 162% which effects wave 5, wave 3 also had a substantial retracement of 77%. Because Wave 3 did not eclipse wave 1 by 162%, the likely outcomes for wave 5 were 62%, 100% or 162% of the combination of waves 1 and 3. Considering the substantial retracement of wave 3, it makes sense that wave 5 was stunted and only reached 62% of the combination of waves 1 and 3. This lined up perfectly with the resistance of the triangle pattern .
The downtrend following completion of the elliot wave sequence was marked by a head and shoulders reversal comprising uptrend waves 3, 4, 5 and downtrend waves A, B and mid-wave C was the breakout sending it back to the support of the triangle pattern for completion of the downtrend wave sequence on 5/11 at 1820. This is where things get interesting because a similar inverse head and shoulders reversal pattern is the process of completing the right shoulder comprising downtrend waves C, D, E and new uptrend waves 1, 2, and mid-3 is the proposed breakout point at approximately 2175. If this breakout occurs, the potential measures a fit perfect to the resistance of the triangle pattern .
This new uptrend wave sequence recently completed wave 1 followed by a healthy correction of 77% which is normal. If wave 3 triggers the inverse head and shoulders breakout as anticipated at 2175 then it could run straight to the resistance at the top of the triangle pattern where I anticipate it will lose steam and retrace some before wave 5. It just so happens that the top of the triangle pattern is around 162% of wave 1 which is a standard length for a healthy wave 3. If wave 3 is retraced 77% again (like the previous sequence) then wave 5 being measured as 100% of wave 1 would fit perfectly to the resistance of the triangle pattern at which point it would likely reverse again and head back down. However, if a normal healthy wave 3 retracement of only 23% or 38% occurs, then wave 5 could force its way through the resistance of the triangle with a potential for an additional 40% breakout.
MY Plan -
Just bought in at 1923 before writing this explanation. Stop loss for now as indicated at 1790, around 6-7% risk. Will scale.
Target 1 is 2300 - based on wave 3 reaching 100% of wave 1 - sell up to 33% of my order.
Target 2 is 2500 - based on wave 3 reaching 162% of wave 1 and hitting the top of the triangle - sell up to 33% of my order.
If wave 3 stops short or 2500 - flash sell up to 33% of my order during retracement.
Target 3 is 2500 (again) which is based on wave 5 reaching the top of the triangle - sell 50% of what I have left at the time.
Whatever I have left after 2500 is holding out hopes for triangle breakout and unlikely target 4 - 3500.
Looking at the entire chart the obvious pattern is a symmetrical triangle being in play. The bottom of this triangle was tested for the 3rd time on 5/10. This is an important pattern to take into account if debating placing a buy order at this time because it shows minimal risk is at play. Currently price is 1923 and the bottom of the triangle is at 1820 which is approximately 5% risk. To protect against this pattern breaking down, a stop loss would be considered at around 1790. As will be explained below, a new elliot wave sequence started at around 1800 and a complete retracement of wave 1 would invalidate the sequence as well as break the triangle pattern . If that happens, then get out.
The first low and high were rather quick as QLC 0.26% found its range on Binance. Thereafter, we saw a long rounded bottom pattern (or cup n handle) which is drawn out in yellow. The rounded bottom pattern almost reached its full potential for a breakout before being halted by the resistance of the triangle pattern .
The uptrend and breakout of the rounded bottom look to fit the proper measurements of a elliot wave sequence. The first wave had a decent run followed by a 62% retracement which is normal. The third wave failed to eclipse wave 1 by 162% which effects wave 5, wave 3 also had a substantial retracement of 77%. Because Wave 3 did not eclipse wave 1 by 162%, the likely outcomes for wave 5 were 62%, 100% or 162% of the combination of waves 1 and 3. Considering the substantial retracement of wave 3, it makes sense that wave 5 was stunted and only reached 62% of the combination of waves 1 and 3. This lined up perfectly with the resistance of the triangle pattern .
The downtrend following completion of the elliot wave sequence was marked by a head and shoulders reversal comprising uptrend waves 3, 4, 5 and downtrend waves A, B and mid-wave C was the breakout sending it back to the support of the triangle pattern for completion of the downtrend wave sequence on 5/11 at 1820. This is where things get interesting because a similar inverse head and shoulders reversal pattern is the process of completing the right shoulder comprising downtrend waves C, D, E and new uptrend waves 1, 2, and mid-3 is the proposed breakout point at approximately 2175. If this breakout occurs, the potential measures a fit perfect to the resistance of the triangle pattern .
This new uptrend wave sequence recently completed wave 1 followed by a healthy correction of 77% which is normal. If wave 3 triggers the inverse head and shoulders breakout as anticipated at 2175 then it could run straight to the resistance at the top of the triangle pattern where I anticipate it will lose steam and retrace some before wave 5. It just so happens that the top of the triangle pattern is around 162% of wave 1 which is a standard length for a healthy wave 3. If wave 3 is retraced 77% again (like the previous sequence) then wave 5 being measured as 100% of wave 1 would fit perfectly to the resistance of the triangle pattern at which point it would likely reverse again and head back down. However, if a normal healthy wave 3 retracement of only 23% or 38% occurs, then wave 5 could force its way through the resistance of the triangle with a potential for an additional 40% breakout.
MY Plan -
Just bought in at 1923 before writing this explanation. Stop loss for now as indicated at 1790, around 6-7% risk. Will scale.
Target 1 is 2300 - based on wave 3 reaching 100% of wave 1 - sell up to 33% of my order.
Target 2 is 2500 - based on wave 3 reaching 162% of wave 1 and hitting the top of the triangle - sell up to 33% of my order.
If wave 3 stops short or 2500 - flash sell up to 33% of my order during retracement.
Target 3 is 2500 (again) which is based on wave 5 reaching the top of the triangle - sell 50% of what I have left at the time.
Whatever I have left after 2500 is holding out hopes for triangle breakout and unlikely target 4 - 3500.
ملاحظة
MACD Turning on the 4 hour - Good SignRSI Found Support on Previous Resistance - Good Sign
Looking for a quick little pump in the next 2 4 hour candles to get us closer to the inverse head and shoulders neckline.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.