This chart illustrates a bullish reversal setup using Elliott Wave Theory, Fibonacci retracement levels, and RSI divergence. Here's a detailed breakdown:
📉 Elliott Wave Count:
The chart shows a complete 5-wave impulse down labeled (1) to (5), suggesting a potential end of a bearish trend.
Wave (5) appears to have just completed, indicating a possible reversal point.
🔍 Falling Wedge Pattern:
A falling wedge is visible between waves (4) and (5), which is typically a bullish reversal pattern.
Price is near the wedge’s apex, hinting at an imminent breakout.
🟡 Strong Demand Zone:
Price is currently inside a yellow demand zone (roughly $0.0136 to $0.0144).
This zone coincides with the 0.786 Fibonacci retracement level at $0.01363, a common reversal level.
📊 RSI Indicator:
The RSI at the bottom shows a bullish divergence:
Price made a lower low, while RSI made a higher low.
This signals weakening bearish momentum and potential upside ahead.
🧠 Summary:
This is a technically sound bullish setup, suggesting a bottoming structure and an upcoming uptrend. The confluence of Elliott Wave completion, wedge breakout, RSI divergence, and Fibonacci support all point to a strong reversal probability.
📉 Elliott Wave Count:
The chart shows a complete 5-wave impulse down labeled (1) to (5), suggesting a potential end of a bearish trend.
Wave (5) appears to have just completed, indicating a possible reversal point.
🔍 Falling Wedge Pattern:
A falling wedge is visible between waves (4) and (5), which is typically a bullish reversal pattern.
Price is near the wedge’s apex, hinting at an imminent breakout.
🟡 Strong Demand Zone:
Price is currently inside a yellow demand zone (roughly $0.0136 to $0.0144).
This zone coincides with the 0.786 Fibonacci retracement level at $0.01363, a common reversal level.
📊 RSI Indicator:
The RSI at the bottom shows a bullish divergence:
Price made a lower low, while RSI made a higher low.
This signals weakening bearish momentum and potential upside ahead.
🧠 Summary:
This is a technically sound bullish setup, suggesting a bottoming structure and an upcoming uptrend. The confluence of Elliott Wave completion, wedge breakout, RSI divergence, and Fibonacci support all point to a strong reversal probability.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.