Well you can't say you weren't aware that today's red candle was coming. All the signals were there and I tried to put them into context for you:
- or -
Today is no different and I have another indication showing why I am waiting to buy more lower ahead of the new bull cycle.
On the 1W (weekly) chart, the RSI reached 58.000 every single time following the bottom of the bear cycle. Each time that happened, it aggressively pulled back. In 2012 by -47% and in 2015 by -37%. Since the sequence is descending I expect a slightly less this time.
What is even more important is that the RSI rebounded around 44.500 in 2012 and 41.000 in 2015. Practically this tells us where to buy when the current pull back is completed. It is worth mentioning that the duration of both pull backs was 5 weeks.
The combination of the above is telling me roughly when and where to buy again.
Bear Cycle's bottom ---> Weekly RSI to 58.000 ---> Pull back ---> New Bull Cycle
Do you agree? I welcome every opinion, especially opposite ones, on the comment section for a heated discussion!
See my two recent studies that were an early signal of today's price drop:
2015: 37%
2019: 27% Drop?
OCD on point :)