Hi Traders! Ripple short term forecast update and follow up is here. On August 24th I shared this “Technical Analysis – Ripple Short Term Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
On the daily chart, we had a bullish momentum with the price creating the first leg to the upside. Currently this bullish momentum is slowing down and I basically expect a possible correction to happen now and then the price might continue higher further. Also, the price which was moving higher has broken above a strong resistance zone and is holding above it. So basically, I expect the price to retest this breakout zone before any possible continuation higher.
In my POV, there are two possible scenarios here, the correction might happen in the form of a triangle pattern and then the price might continue higher further.
Or alternatively, the correction might happen in the form of double wave down towards the strong support zone and then the price might continue higher further from this zone. In either ways my short term view is bearish and my mid term view is bullish here.
Ripple D1(Daily) Chart Current Scenario
Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to move lower further towards the strong support zone. The price action followed my analysis exactly as I expected it to here. The price moved lower further as per the plan and provided an amazing move to the downside and has currently reached the strong support zone.
You can see this move clearly on the H4 chart below.
On the H1 chart, the market provided us with various facts supporting the bearish view. The price which was moving higher created a bearish divergence between the first high that has formed at 1.28698 and the second high that has formed at 1.30246 based on the MACD indicator. The price then moved lower and broke below the most recent uptrend line, we may consider these as facts provided by the market supporting the bearish view and also there we no signs opposing this bearish view. Then as you can see in the image below how the price moved lower further and provided an amazing move to the downside until it reached the strong support zone and was blocked by a bullish divergence.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
For similar trade ideas and much more I invite you to
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
