on 17th of March 2020 I posted an article where I revealed that the priceline of Steem has completed a bullish Shark pattern the formation of this pattern was started on 25thf November 2019 and completed on 9th March 2020. And as per Fibonacci sequence of bullish Shark pattern I predicted that the Steem will move up from here atleast between 0.382 to 0.786 Fibonacci projection of C to D leg of this bull shark pattern. And on the very next candlestick the price action of Steem took a really very powerful bullish divergence and produced more than 350% gains. That was really very massive profit.
Why the priceline moving down again:
In the previous article we have already examined that after the previous bullish move the priceline was not able to cross up the 200 simple moving average resistance. And dropped down on 100 simple moving average support this time the same move occurred again the even though the priceline moved up to 350% but could not cross up the 200 simple moving average and again dropping down on the 100 simple moving average. So far the priceline is above the 100 SMA but if it will hit on the 100 simple moving average then we can use the different indicators to examine that whether the priceline will take another bounce from this simple moving average or it will break down the 100 simple moving average this time.
My combination of indicators to determine whether this support will be broken or not:
For example I'm using the William top bottom indicator with the combination of momentum indicator. If the William top bottom indicator will turn green it's mean that it will be giving signal that the sellers are active and after turning green when it will be turned gray then it is the signal that the buyers are getting active, with that signal if the momentum will be turning bullish and we will be above the 100 simple moving average then in my opinion the priceline will take another bounce from 100 SMA support.
What if the priceline will breakdown the 100 SMA:
In case the priceline breaks out the 100 simple moving average on 2 day chart then we can witness a very strong bearish move by the price action of steem. And in this situation this strong bearish move can help the priceline to complete the final leg of an other big bullish Shark pattern. As we can see that after initial leg the A to B leg is retraced between 0.382 to 0.618 Fibonacci level and B to C leg is projected between 1.13 up to 1.618 Fibonacci projection and this is the Fibonacci projection of A to B leg. Here I have ignored some extra spike because all other legs are driven as required for the bullish Shark pattern. Now if the final leg will be retraced between 0.886 up to 1.13 Fibonacci retracement level then the price action should take another powerful bullish divergence at least between 0.382 to 0.786 Fibonacci projection of C to D leg. And this can be another up to 360% profit potential move. As per Fibonacci sequence of this bull shark pattern the buying and sell targets should be as below:
Buy between: $0.1219 to $0.0699
Sell between: $0.1931 to $0.3229
This idea is for long term and midterm traders, I will be keep posting more trading ideas.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.