Price was rejected at a 360 degree price area, a natural harmonic area and right on a pivot in time. If we were to zoom in on the 8 hour, we see that price is trading below and has broken below its first steep angle in the Gann Box (Square of 144).
Additionally, we have gone up straight for 7 weeks. This is a combination of two extremely bearish signals:
45 day cycle - 45 day cycles from swing lows/highs are often strong reversal areas and end blow off moves.
49 day cycle - 7 is one of the most important numbers in Gann theory. We have gone up 7 weeks straight which means we have an extremely high probability of a > 50% retracement.
Additionally, the full moon coming on the 31st is a Full Moon (which is important for markets at lows), but we have a full moon that is also a blue supermoon and a total lunar eclipse. Regardless of where price is at, trending markets violently change during this period.
Additionally, we have gone up straight for 7 weeks. This is a combination of two extremely bearish signals:
45 day cycle - 45 day cycles from swing lows/highs are often strong reversal areas and end blow off moves.
49 day cycle - 7 is one of the most important numbers in Gann theory. We have gone up 7 weeks straight which means we have an extremely high probability of a > 50% retracement.
Additionally, the full moon coming on the 31st is a Full Moon (which is important for markets at lows), but we have a full moon that is also a blue supermoon and a total lunar eclipse. Regardless of where price is at, trending markets violently change during this period.
Note
Adding to shorts this morning, price finding strong rejection at this Gann angle (1x2) and is overbought by continuing beyond the inner 5th harmonic. Strong bias for continued down momentum. Trade closed: target reached
Closed 7/8ths for +395 pips, rest is running.Trade closed: stop reached
Close last 1/8th position of shorts.
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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.