Hi Traders! Ripple forecast and technical analysis post is here. In this, multi-time frame technical analysis method will be applied in order to look for all the possible evidences that support my view on the current trading timeframe and the higher timeframe. The platform in which we perform this multi-timeframe analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. We will start our analysis from the highest timeframe now which will be the daily chart here.
Ripple D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, Parabolic Sar
On the daily chart, we had a bullish rally which had completed itself, and currently, it looks like a correction is happening. We have a support zone that has formed based on the 38.2%(0.2453) – 50%(0.2204) fibonacci retracement levels of this bullish rally. We also have a good uptrend line that has formed which coincides with this support zone and makes this area a strong support zone for us. The price which was moving lower reached this strong support zone, respected it, and is bouncing higher. We also have a bullish divergence that has formed between the first low that has formed at 0.2286 and the second low that has formed at 0.2185 which we may consider as evidence of bullish pressure. In addition to this based on the Parabolic Sar the dots are below the price which we may consider as another evidence of bullish pressure. We may now move down to lower timeframe and look for evidences supporting this bullish view.
Ripple H4(4 Hours) Chart Analysis – Downtrend Line Breakout, ADX Indicator, Invalidation Level
Looking at the H4 chart we could see that the price which is moving higher has broken above the most recent downtrend line and is holding above it, which we may consider as evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Currently, there are no contradictory signs in play, so based on all this, my view is bullish here and I expect the price to continue higher further. If the price moves lower and if we get a valid breakout below the most recent uptrend line (marked in green) then this bullish view will be invalidated.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Technical Analysis & Forecast Summary
Ripple D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Divergence, Parabolic Sar
Ripple H4(4 Hours) Chart Analysis
- Downtrend Line Breakout, ADX Indicator, Invalidation Level
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