Not long ago, we were facing a similar structure on Bitcoin.
The right 1H chart, mid-May 2017. We had a triangle structure formed after a bullish trend. The left 1H chart, NOW. We have a triangle structure formed after a bearish trend.
Some said money flow into Bitcoin affects all technical analysis. I will say each candlestick has its own story in terms of buy/sell, therefore I did not include volume as an indicator in most of my analysis.
Let's compare the volumes in these two graphs by eye-sight. I recommend you ask a kid this question: Which graph (left or right) has more red bars than green bars in the black box? Answer in 5 seconds. The left graph is.
The reason is to ask a kid is because we sometimes think much more than kid, simply because we traded many years with our own ideas and experience, kid's thinking is much straight-forward than us.
Back to these charts, there were only go up or down when the candlesticks go toward the vertex. Because we don't know how much of a large volume apply to (buy/sell), we better prepare a two ways setup. (No perfection for any indicator/pattern)
The right 1H chart, mid-May 2017. A breakout occurred with a large buying volume. That candlestick is called a shooting star, followed by a dark cloud cover but its shadow touched the blue S/R zone. The candlesticks are bearish signals indeed. But two hours later, a long bullish candlestick engulfed everything. This dramatic retest formation was pretty unusual. But it happened.
The left 1H chart, NOW. day traders might play nicely within the range 10200 - 11500/11700. Long term investors may consider two way pending orders instead: If one way (long) order entered, then you delete the other way (short) order, or vice versa.
traingles usually point to trend continuation.. it acts as accumulation zone for the next run.the graph on the right unlike now..back then it was in the middle of very strong bull run..
so the current traingle would act as strong bearish continuation zone even there would be a breakout upwords it would be fake one like a previous triangle breakout from 14kt to 17K..
so the current traingle would act as strong bearish continuation zone even there would be a breakout upwords it would be fake one like a previous triangle breakout from 14kt to 17K..