Cardano Analysis: Bullish Breakout on Daily timeframe
Conclusion for today's Cardano Analysis: A breakout above 0.00001336 confirms higher prices in ADABTC
Price action from June 5, 2018 to current date is covered in today’s Cardano analysis on the Daily timeframe. The downtrend in Cardano from June 2018 is highlighted with the descending or falling wedge chart pattern.
This is immediately followed by a side trend that has lasted over 6 months starting from September 20, 2018. The sideways action is a bottoming chart pattern that is identified in this Cardano analysis as an inverted, complex head and shoulders pattern. This pattern is otherwise known as a complex head and shoulders bottom due to the fact that more than one right shoulder is observed in this case.
0.00000839 is used as the point of invalidation (POI) of the pattern at which point the current downtrend would be assumed to have resumed. 0.00001336 is the neckline of the pattern.
A logarithmic scale is used in this analysis and it is important to switch back to an arithmetic scale for measuring implications based on the chart pattern i.e. projection.
This involves measuring the distance from the neckline to the head (H) at ~0.00000839 to the neckline and adding that distance to the neckline upon breakout.
Confirmation and bullish swing to follow should last for at least weeks.
Price action from June 5, 2018 to current date is covered in today’s Cardano analysis on the Daily timeframe. The downtrend in Cardano from June 2018 is highlighted with the descending or falling wedge chart pattern.
This is immediately followed by a side trend that has lasted over 6 months starting from September 20, 2018. The sideways action is a bottoming chart pattern that is identified in this Cardano analysis as an inverted, complex head and shoulders pattern. This pattern is otherwise known as a complex head and shoulders bottom due to the fact that more than one right shoulder is observed in this case.
0.00000839 is used as the point of invalidation (POI) of the pattern at which point the current downtrend would be assumed to have resumed. 0.00001336 is the neckline of the pattern.
A logarithmic scale is used in this analysis and it is important to switch back to an arithmetic scale for measuring implications based on the chart pattern i.e. projection.
This involves measuring the distance from the neckline to the head (H) at ~0.00000839 to the neckline and adding that distance to the neckline upon breakout.
Confirmation and bullish swing to follow should last for at least weeks.
