So, we continue to work on the price chart with a time frame of 1 day. We use the Double EMA indicator for analysis the price movement on the chart. Go onto BitSeven platform at www.bitseven.com, select “Leverage trading” tab and timeframe of 1 day, a separate window the chart for our convenience and apply the indicator Double EMA on the chart.
Now we do not see any clear signal for buying or selling. Refreshing in memory the material from yesterday’s edition we can say, if the price crosses the indicator line from the bottom to up – this will be a signal to buy. Otherwise, it will be a signal for sale. As we have said, the day timeframe teaches patience. In anticipation of a clear signal to action, let us look at the chart and determine the levels of resistance and support of the volatility channel. This is our resistance level, and below we see the support line. Next, we can determine the candlestick pattern “bearish engulfing”, which indicates a possible further decline in the price. Let us remember our anticipation to check it after a while.
As part of independent work, I propose to repeat our previous materials about candlestick patterns.