On the 4-hour timeframe, the price of WAXP is forming a bearish Harmonic Butterfly pattern and is in the process of completing leg D. Additionally, the price has formed a double bottom pattern that has successfully broken through and bounced off the neckline.
Key points:
Bearish Harmonic Butterfly Pattern: This pattern usually indicates a possible reversal point. Watch the completion of leg D for possible bearish moves.
Double Bottom Pattern: A successful break of the neckline indicates a bullish reversal. Expect further growth as the pattern progresses.
Why This Analysis Is Important:
Understanding these technical patterns helps traders predict possible price movements. A bearish Harmonic Butterfly pattern indicates a possible reversal, while a double bottom breakout indicates bullish potential. Monitoring these events can help you make more informed trading decisions.
Team Recommendation:
Given the formation of the bearish Harmonic Butterfly pattern and double bottom pattern, we recommend keeping a close eye on WAXP. If leg D of the Harmonic Butterfly pattern completes, consider going short. On the other hand, if the bullish momentum from the double bottom pattern continues, long positions may be profitable.
Management of risks:
Use stop loss orders outside the pattern's boundaries to mitigate potential losses from unexpected price movements. Diversify your portfolio to spread your risk.
Monitoring:
Watch for the completion of the Harmonic Butterfly pattern and significant volume changes. Keep an eye on news and market sentiment that could impact WAXP's price action.
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