What a mess Friday turned out to be with a recording breaking liquidation event with the numbers still growing - bigger than FTX!
SUNK COST FALLACY: THE DAMAGE IS DONE, DO NOT PANIC IN AND OUT OF POSITIONS.
So many alt-coins proved there is nothing but thin air holding them up - no real demand whatsoever! I'll take a look at some charts today. Now these wicks can be classed as 'anomalies' in technical analysis but in this case i think we've revealed some of the strong tokens now with real backing.
It is expected that with such large wicks we at least test the centre of the wick on one more terrifying shake-out that isnt actually as bad as the one we just has but feels it because traders and investors are been kicked while their down in a state of panic.
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Price printed a topping wedge, broke down, tested as resistance and dropped. The drop was likely anyway but the extent of systematic failure made it worse.
Aave did not penetrate the lows of the larger range and found support in the High Volume Node all the way back to the 0.5 Fibonacci retracement and is now back testing the daily 200EMA as resistance.
Wave 2 is likely complete. We probably visit the wick on a scary candle to $209 High Volume Node before finding a bottom for a huge wave 3 of 3 move up to new highs! A likely scenario now that we have shaken out all the weak hands.
These events often mark the bottom. Daily divergence is not oversold or has bullish divergence yet. The macro structure is still in tact!
Safe trading
SUNK COST FALLACY: THE DAMAGE IS DONE, DO NOT PANIC IN AND OUT OF POSITIONS.
So many alt-coins proved there is nothing but thin air holding them up - no real demand whatsoever! I'll take a look at some charts today. Now these wicks can be classed as 'anomalies' in technical analysis but in this case i think we've revealed some of the strong tokens now with real backing.
It is expected that with such large wicks we at least test the centre of the wick on one more terrifying shake-out that isnt actually as bad as the one we just has but feels it because traders and investors are been kicked while their down in a state of panic.
-------------
Price printed a topping wedge, broke down, tested as resistance and dropped. The drop was likely anyway but the extent of systematic failure made it worse.
Aave did not penetrate the lows of the larger range and found support in the High Volume Node all the way back to the 0.5 Fibonacci retracement and is now back testing the daily 200EMA as resistance.
Wave 2 is likely complete. We probably visit the wick on a scary candle to $209 High Volume Node before finding a bottom for a huge wave 3 of 3 move up to new highs! A likely scenario now that we have shaken out all the weak hands.
These events often mark the bottom. Daily divergence is not oversold or has bullish divergence yet. The macro structure is still in tact!
Safe trading
PhD Cand: Investing & Sentiment , MSc Financial Econ
Trader 8 years, Investor 15 years
The Sentiment Investor - Market Psychology: thesentimentinvestor.substack.com
Trade Planning, Strategies & Signals: Earn & Learn: tradesignals.substack.com
Trader 8 years, Investor 15 years
The Sentiment Investor - Market Psychology: thesentimentinvestor.substack.com
Trade Planning, Strategies & Signals: Earn & Learn: tradesignals.substack.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
PhD Cand: Investing & Sentiment , MSc Financial Econ
Trader 8 years, Investor 15 years
The Sentiment Investor - Market Psychology: thesentimentinvestor.substack.com
Trade Planning, Strategies & Signals: Earn & Learn: tradesignals.substack.com
Trader 8 years, Investor 15 years
The Sentiment Investor - Market Psychology: thesentimentinvestor.substack.com
Trade Planning, Strategies & Signals: Earn & Learn: tradesignals.substack.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.