Shiba Inu: Moon Soon? (Fibonacci Channel Inside)Hey everyone, let’s do a multi-timeframe analysis on Shiba Inu today.
We will use top-down approach along with the Fibonacci Channel on the log chart.
Daily:
Currently in downtrend, forming lower lows and lower highs, consolidating in a parallel channel and has broken out, but still with a less volume. It has much probability to reverse back to the channel, it might consolidate outside the channel for a few days, I will show it to you on the Fibonacci Channel.
Let’s draw a Fibonacci Channel on this downtrend.
For drawing a Fib Channel on the downtrend chart, you have to select the first high of the trend, then the next high, and the third point should be on the low in between these two highs (Check out the A, B and C points in the chart).
Now you can lower your timeframe to get into a trade according to these lines.
Here we can see, it has broken the channel and has hit the first target of -0.618 level. For the next level, it should take a pullback on the lower timeframes, which has a less probability. In this situation, price might consolidate between the 0 to -0.618 level. It might use this 0 to -0.618 zone as a new channel.
4 Hourly
On the four hourly chart, we can see some better volume than the last few days, and the formation of Doji candle indicates a trend reversal and we can see a bullish pinbar candle forming here too. I’m bearish here and you shall also check the work of Fibonacci Channel in the below image, price is respecting it. You can use this channel in any trending market.
1 Hourly
We can see 3 bearish engulfing candles, which is an indication of bears incoming and the volume is decreasing too.
P.S. I’m using Log charts here.
I'm sharing the links to the Fib Channel Ideas, do check them out.
Hope you had a good time reading this ;)
