#DXY The dollar has reached the reversal zone
#DXY
The dollar has reached the reversal zone (Harmonic Enlightenment pattern)
The decline prediction fails with a daily close above 108.14. Otherwise, we wait for the green targets
The "Butterfly" pattern is a technical analysis pattern used in trading, including cryptocurrency trading. It is a specific type of harmonic pattern that traders use to identify potential reversal points in the price of an asset. The Butterfly pattern is characterized by several price points that form specific geometric shapes on a price chart. Here's a brief explanation of the Butterfly Bearish Harmonic Pattern in crypto:
1. **Initial Move:** The pattern begins with a significant price move, which could be either an uptrend or a downtrend, depending on whether it's a bearish or bullish Butterfly pattern.
2. **X-A Leg:** This is the first leg of the pattern and represents the initial move's retracement. It's labeled as "X" and is usually the point where traders first identify the potential pattern.
3. **A-B Leg:** This leg is the next move in the opposite direction of the initial move, labeled as "A." It retraces a portion of the X-A leg.
4. **B-C Leg:** The B-C leg represents a move in the direction of the initial X-A leg and is labeled as "B."
5. **C-D Leg:** The final leg, labeled as "D," is the most critical part of the pattern. It extends beyond the X-A leg and typically ends near a Fibonacci extension level of 1.618 or 2.618 of the X-A leg.
The Bearish Butterfly pattern suggests a potential reversal to the downside. Traders look for this pattern to anticipate that the price may start declining after completing the D leg. It's important to note that not all identified patterns result in price reversals, so traders often use additional technical indicators and risk management strategies to make informed trading decisions.
Remember that cryptocurrency markets are highly volatile, and trading based solely on technical patterns carries risks. It's crucial to conduct thorough research and consider other factors before making trading decisions in the crypto market or any financial market.
The dollar has reached the reversal zone (Harmonic Enlightenment pattern)
The decline prediction fails with a daily close above 108.14. Otherwise, we wait for the green targets
The "Butterfly" pattern is a technical analysis pattern used in trading, including cryptocurrency trading. It is a specific type of harmonic pattern that traders use to identify potential reversal points in the price of an asset. The Butterfly pattern is characterized by several price points that form specific geometric shapes on a price chart. Here's a brief explanation of the Butterfly Bearish Harmonic Pattern in crypto:
1. **Initial Move:** The pattern begins with a significant price move, which could be either an uptrend or a downtrend, depending on whether it's a bearish or bullish Butterfly pattern.
2. **X-A Leg:** This is the first leg of the pattern and represents the initial move's retracement. It's labeled as "X" and is usually the point where traders first identify the potential pattern.
3. **A-B Leg:** This leg is the next move in the opposite direction of the initial move, labeled as "A." It retraces a portion of the X-A leg.
4. **B-C Leg:** The B-C leg represents a move in the direction of the initial X-A leg and is labeled as "B."
5. **C-D Leg:** The final leg, labeled as "D," is the most critical part of the pattern. It extends beyond the X-A leg and typically ends near a Fibonacci extension level of 1.618 or 2.618 of the X-A leg.
The Bearish Butterfly pattern suggests a potential reversal to the downside. Traders look for this pattern to anticipate that the price may start declining after completing the D leg. It's important to note that not all identified patterns result in price reversals, so traders often use additional technical indicators and risk management strategies to make informed trading decisions.
Remember that cryptocurrency markets are highly volatile, and trading based solely on technical patterns carries risks. It's crucial to conduct thorough research and consider other factors before making trading decisions in the crypto market or any financial market.
Comment:
reached 1st target