Forum Dogecoin / Tether
DOGEUSDT.P Narrative
On the DOGEUSDT chart, it is clearly visible that the ABC pattern is similar to the previous pattern, indicating that now could be a good moment to enter a position. Let's look at it further:
ABC pattern analysis:
1. Lines A-B:
The ABC pattern begins with a significant price increase from point A to point B, indicating strong bullish momentum.
2. Lines B-C:
After reaching Point B, the price undergoes a correction towards Point C. This decline is natural after a sharp rise and creates a reversal opportunity.
Levels of support and resistance:
Point C is in an important support area. If the price is able to hold above this area, there will most likely be an upward reversal.
Fibonacci Levels:
It checks whether the decline from B to C corresponds to a significant Fibonacci retracement level, such as 0.618 or 0.786. This pattern appears in a downtrend, indicating that the trend will change.
Pattern Confirmation:
Wait for reversal confirmations, such as a strong bullish candle or a significant increase in trading volume.
Position Entry Advice:
Entry Point:
If there is confirmation that the price has found support at Point C and started to turn up, consider entering long positions. A bullish candle or an increase in volume can be a good confirmation.
Stop Loss:
Place a stop loss slightly below Point C to protect capital if the price moves against expectations.
Take Profit:
Set profit targets at the next resistance level, or use Fibonacci extensions to determine possible price targets.