At each juncture, each time the market stops and takes a break, we have the uncanny ability to stop and wonder, will the market continue with its current movement or will it reverse?
In other words, if we are not fully certain of our position we can always doubt.
We will now look at the volume profile on EOSUSDT and see what it has to say. You will see, doubts can be cleared right away.
Let’s start with the daily timeframe chart and then move to lower timeframes.
- 13-Feb. EOSUSDT price is rising and so are the green volume lines.
- 19-Feb. EOSUSDT peaks and goes red, the bear volume is lower (red lines smaller) than the green lines.
- By 25-Feb. EOSUSDT switches from red to green, notice how the bull volume once again starts to increase.
- The last 5 volume lines, green, are bigger than the previous red lines.
The trading volume is favoring the buyers, the bulls.
- Now we move to the 4H timeframe. 25-Feb. 16:00 we have a hammer candlestick, which is a reversal signal.
- The last session that closed produced the highest buy volume since 17-Feb.
This means that buyers are coming in now.
The trend continues upward, higher lows and buy volume is predominant on this chart.
Last chart, 1H timeframe:
- Notice how above-average volume only shows up at the time when prices move up on this EOSUSDT chart.
And thus we can say that we are simply seeing a normal retrace before a new high, additional growth.
Since we are looking at volume, a strong and fast drop supported by high bear volume and closing below the 25-Feb. low would invalidate the positive outlook we just reviewed.
As long as this doesn’t happen, we continue with a bullish bias and for the next leg to show up all that we need to do is wait.
Patience is key.
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