One of the last, if not THE last, summer Friday of 2017.
We are trapped in a range, based on the trading activity over the last three days. It’s possible that we are slowing down into the Jackson Hole speeches. It’s possible that it’s still just the summer liquidity vacuum. We remain within a triangle, visible on the 4-hour chart, so avoid the middle of that triangle.
Look at the charts below and you will see a pitchfork in place (top right). This fork uses a median line that starts around 11th August, there’s a touch around the 14th. It then cuts the swing from 17th – 21st through the middle and during that swing, price switches the median line and continues to complete the swing. The fork is bullish. Since creating the ‘C point’, the price has not yet touched the median line. It got close on the 23rd but failed to get there. Our thinking is one of two things.
1 – We react to the fork from current levels (or slightly lower, into the buy zone – visible on the centre top chart) and move higher from here. We head up to test major resistance at 335 and in doing so we make a final attempt at hitting the median line. To reach the median line we would have to break this resistance, which opens up other possibilities. The other possibilities can be narrowed down to; a full bullish breakout/reversal, or a trap triggering a large move to down side.
2 – We failed to hold the fork support AND fail to test the median line, suggesting that we are now unable to continue higher and we have a chance to target the fork warning line (currently visible as a lower parallel of the fork low).
We had this trade yesterday:
DAYTRADE SELLLIMIT #GER30 @ 12256.00 | SL:12285.00 | TP:12140.00 | 2017.08.24 10:00 (BST) | ID 14158182
This eventually led to a great little trade. I took +68 from this:
I sold all my RRT coins yesterday after they gained over 400%. So I made a significant profit (relative to the size of my portfolio). So I have $417 USD sat in the account waiting to buy more RRT at a lower price. I decided to cash out simply because of the how steep that spike was. Buy order pending at 0.16
Current balance: $459
Original balance: $125