The price moves upward in the borders of an ascending price channel. We can see that the price bounced from the middle line of the price channel and now it moves downward. RSI confirmed price reversal in the overbought zone. What does it mean? It means that we should expect for further downward movement to the nearest support zone. We have such zone not far from the current price and it's formed by 4000.00 strong support level and the trend line of the price channel. We must be ready to see a price reversal from this zone. It will give us a good buy signal and an opportunity to join the uptrend. Alternative variant, if the price can break the support zone, we'll see further downward movement to 3500.00 level. This level also will be able to reverse the market and give us new trading opportunities.
appears to have respected 4k support. Time to buy? RSI and MACD looking good
kayb100
⋅
Thanks Dlavrov! The labeling on your charts are really helping in the learning process!
I just have one question if you don't mind, how did you choose 4500 as resistance? To me i would have selected (wrongly i guess lol) several other points below 4500 as my resistance line. What was the thought process behind choosing 4500?
Many thanks.
andrewdziouba
⋅
@kayb100, trading is 100% psychology, and 4500 is a nice round number, just look at the order book, all the round numbers got big orders.
@andrewdziouba, Sorry was looking at the wrong support/resistance line. That was not the previous high
DLavrov
⋅
@kayb100, they are magic! I mean round numbers like 4000.00, 4500.00, 5000.00, 10 000.00 and so on.
kayb100
⋅
@DLavrov, haha :) ok i see so more like psychological numbers.
vh6889
⋅
I think the price is bouncing from fibo 0.382 level (4136). If I true, we will saw the price around 4487 very soon. This screenshot just for infomation: