Short

$ETH Ascending Broadening Wedge Breakout

Ascending Broadening Wedge with completed Partial Rise and Breakout to the downside with Pullback at resistance

Note

Referencing Charles Bulkowski's Encyclopedia of Chart Patterns regarding the Ascending Broadening Wedge, Bulkowski writes:

"Volume tends to rise over time...an interesting pattern that is key in identifying the start of a new price trend: the partial rise...A partial rise is when prices lift off the lower trendline but curl around and head down before coming near the top trendline. WHEN A PARTIAL RISE OCCURS, A DOWNSIDE BREAKOUT FOLLOWS 84% OF THE TIME...ONCE PRICES PIERCE THE BOTTOM TRENDLINE, THEY DROP RAPIDLY."

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Bulkowski recommends the Measure Rule for trading this formation: "Use the lowest price in the formation as the minimum price move to expect."

Other notes from Bulkowski to consider:

"There is high volume on the breakout day, as expected, and it measures 65% above the prior day."

"If you blindly invest in an ascending broadening wedge, there is a 76% likelihood that the formation will break downward...that still leaves 24% that either move up or move horizontally...it pays to wait for a confirmed breakout before investing."

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Bottom line...hold here or short to the Measure Rule target at $1075 ETH

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Failed to hold the support line with a massive Bearish Engulfing candle on the Daily

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Currently watching this potential Diamond Bottom forming. It does have the corresponding volume profile for the pattern...

Would be looking for high-er volume on the breakout. This pattern has a 13% failure rate with a typical rise of 15%-35%, with a 43& chance of Throwbacks...

This pattern does not invalidate the Ascending Broadening Wedge until a clear break of the Wedge's lower trendline is held

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For more bullish narrative here, now seeing a potential Inverse Head & Shoulders forming along with the Diamond Bottom...

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...along with a Bullish Gartley anchored here as well...

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Bullish formation narratives are invalidated. Expecting to see the $1000 ETH from here. Any upward movements are to be considered shorting opportunities.

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Breakdown has continued as expected. Still down trending...

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Price touched off the 200-Day MA on the Monthly

BTCookieMonster

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