ZECBTC formed bullish BAT | A good long opportunityZcash is one of my favorite digital asset who gives short term trading opportunities almost daily for the day traders.
Currently being traded below exponential moving averages 10 and 20 with Bitcoin pair on day chart.
On short term 2 hour chart after a successful formation for bullish Shark pattern the ZEC moved up from potential reversal zone and now the price action has formed a bullish BAT pattern and at this time the priceline is floating in potential reversal zone of this BAT pattern.
Let’s dig this pattern deeper to examine how perfect this pattern is formed:
After completing the initial leg (X to A) the A to B leg is retraced between 0.382 to 0.50 Fibonacci and then B to C leg is projected between 0.382 to 0.886 of A to B Fibonacci projection area and last leg (C to D) is retraced between 0.786 to 0.886 Fibonacci and now the price action is moving in potential reversal zone of this bullish BAT and now we can expect bullish divergence at any time from this area.
The Indicators:
We can use different indicators to get help enter this trade like the moving average convergence divergence (MACD) is strong bearish and stochastic is in bear cross so we can wait for MACD to turn weak bearish from strong bearish or stochastic to give bull cross then place our buying orders.
The Targets:
The buying and sell targets according to harmonic BAT pattern should be:
Buy between: 0.006296 to 0.006273 sats
Sell between: 0.006350 to 0.006431 sats
Stop Loss:
The potential reversal zone of this pattern can be used as stop loss in case of complete price action closes below this level.
This is short term trading idea not a long term idea, I will be keep posting more trading ideas
