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Cryptocurrency
by Seth Parker on August 15, 2018

Dash Analysis – Small bullish reversal is possible

Time for Dash, which was previously mentioned on the 20th of July. Here, we can see a very important principle of the Price Action trading approach – you wait for the price to show you the direction with either a bounce or a breakout. Back in that day Dash was drawing a bullish reversal pattern but for the proper buy signal we were still missing one important detail:

“Currently, Dash is having a triple bottom formation and today, the price broke the resistance of this pattern (black). Price closing a day above this area will be a strong buy signal. On the other hand, rejection should drive the price much lower. „

Dash Chart

The price did not manage to close above that resistance (black). Failed opportunity was an occasion to go in the opposite direction – down. At the beginning of August, Dash broke the horizontal support on the 210 USD (blue), which was a direct signal to go short. Currently, we are around 150 USD and it seems that traders are getting ready to a bigger bullish correction. The sentiment is still negative in the long-term but in the next few days, we may be experiencing a small pull-back. Do not get overly optimistic though, for us, it is just a dead cat bounce.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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