cryptopatterns Market Wrap
July 12, 2017 9:15 PM EST Vol 2 issue 12
However the bullish case also has 2 other clues that say MAYBE we’ll see a reversal off new lows….
Bingo (though full disclosure: most cryptos only tested but did not break new lows –still down then up which is what probabilities called for)
Now we have a set up you will (or have) seen over and over if you want to trade long term.
3 CHARTS: Tomorrow may be volatile or wind up looking like a boring day, but probabilities say the close will have great meaning for the next big move in the market
We’ll show 3 charts but the following comment applies to nearly EVERY USDT crypto–at least the ones that matter most:
Confirmation of the inv head and shoulders “all comes down to this pattern” would mean testing top of bearish head and shoulders and moderate to high prob pattern failure and start of bullish wave 1.
Even ETC which seemed incredibly bullish was just racing up to retest the shoulder of it’s large head and shoulders pattern (chart below)
So what’s the bullish case for tomorrow:
- The “buy” pattern has a very high probability of seeing higher prices (has already happened for some cryptos as we write this (DASH STR NXT on a quick glance-might be others)
- A good minimum upside target for the “buy” pattern is the lower or even the upper moving average — should at least get above reversal candle that started the pattern (4 days ago–see daily chart)
- BTC closed above $2350. It’s HIGH probability bullish (for entire market we believe) if we see BTC close above $2350 and especially above $2500 tomorrow
- Still tons of bullish divergence on LT time frames – we’ve got all the juice we need for a new bullish wave and even serious new highs (Especially BTC which just hasn’t dropped that much through all this)
RED FLAGS — see last 2 days market wraps –we’ve covered just about everything EXCEPT
THE ONE RED FLAG WE’RE SET UP FOR TODAY YOU MUST WATCH OUT FOR:
It’s high prob they are going to take price higher but the question is
Will they then REVERSE to a higher high reversal day which is BEARISH and likely to lead to 2-6 days of additional downside and likely new lows.
There are “stalling” versions of this pattern that might drag this out for a few days — but you absolutely MUST plan for a reversal day tomorrow — many of you have gains on your positions now — if they’re ST positions locking in some profit at (or before) price hits the moving averages is the highest prob.
Also consider– There is no guarantee they will take price up to moving averages — reversal pattern just requires a higher high — for example if they want to tank NXT right now it’s possible we won’t see a higher price for a week, or weeks…. (NXT reversed STR breaking out as we write — still early!)
After close tomorrow, you can consider adding back ST positions if we don’t close red or a “doji” candle = breakeven with yesterday.
We believe probabilities say there is
NO TRADING EDGE
Reason being we saw nothing bearish today but ETH still way below 240 and LTC well below 50 — let’s see them close there tomorrow and we’ll happily give a slight edge to bulls — with some nice upside too….
The next 24 hours could get very volatile as they try to hide which way they want this to go — it should become pretty clear about an hour before the close.
Another test of your skills as a SAFE trader. Having fun yet?
We’ll try to update but will be travelling so if we don’t post market wrap tomorrow on newsletter we’ll try to tweet updates — check @cryptopatterns
Here’s ETC — current leader — We’ll post BTC LTC and ETH tomorrow EARLY so watch for that but the charts are VERY similar (in sync for now– usually are at big move times).
STR off to a strong start – -we’re adding the wave count chart for reference as well
We’re leaving the BTC daily chart here so you can see what kind of downside we’re facing if we have a reversal day outside the channel. The low end targets are again shown as a gentle reminder we can still fall a LONG way (but there is great upside too — let’s not get too bearish here—JUST TRADE YOUR PLAN!)
Be sure you clearly see just how far down moderate probabilities say prices can still go….
See prior Market wraps and Early updates for other key targets and information (see categories to find these)
- The targets that are absolutely the most important to your trading (scaling in) decisions now are:
- LTC $30.70XXX Gap fill
- DASH $130 prior key target failed at testing twice so far…
- ETH $100 crash low
There are other targets and all are noted on the chart below –but if we get close to these — must trade assuming we’ll hit and break them given current bearish pattern.
TRADING STRATEGY – Our scaling in strategy shared several days ago now makes more sense than ever. As noted above this is a BUY signal so even if we see a move down, the probability of higher prices in the coming weeks has increased. Please see this post for scaling strategies:
We’ll update as patterns emerge but if you have questions or want any clarification email us at:
STAY SAFE — TAKE ACTION WHEN YOUR PLAN SAYS TO ACT — AND STAY IN THE GAME LONG TERM.
This site is for educational and entertainment purposes only and not in any way intended to be investment or trading advice. You are 100% responsible for your financial decisions at all times. It is highly recommended you DO NOT make any investment or trading decisions depending upon what you read on this blog/newsletter! All information presented (c) 2017 JBP cons, inc. All rights reserved.