Yellow lines are drawn using previous swing highs and lows and are able to determine support and resistance lines for possible future price movement. The price was met with some difficulties to rise over the $56,600 and has already retested twice. This is going to change since the price is building up slowly towards the level. Others yellow lines have all been previous resistance levels that will turn to support once broken.
The purple lines indicate a bullish flag pattern, this means that the price will breakout higher than the flag pattern. The crossover just took place, leaving the previous resistance level as a support, price has already retested the new support and bounced off it.
I have placed 2 Fibonacci retracement drawing tools instead on two different price levels, because it can help give a closer insight on the upcoming short term corrective wave. It has proven effective because price has retested on different levels of the 2 Fib tools at equal amounts of time.
Small text boxes help you identify the use of each SR level.
This is only for educational purposes and not financial advice.
Thierry Hitti
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The purple lines indicate a bullish flag pattern, this means that the price will breakout higher than the flag pattern. The crossover just took place, leaving the previous resistance level as a support, price has already retested the new support and bounced off it.
I have placed 2 Fibonacci retracement drawing tools instead on two different price levels, because it can help give a closer insight on the upcoming short term corrective wave. It has proven effective because price has retested on different levels of the 2 Fib tools at equal amounts of time.
Small text boxes help you identify the use of each SR level.
This is only for educational purposes and not financial advice.
Thierry Hitti
Like for more!