WaltonChain - A project that's been around on the scene since the mid 2017, has a myriad of support and a overall decent volume for trading on Binance. And we don't care.
(An Educational look at Cup and Handle Pattern formation on WaltonChain's 4 Hour TimeFrame)
What this post is going to do is explain what pattern is formed, what we are looking for in the pattern, and how to trade it. This is not meant to be financial advice, just an educational post for new traders looking for resources. If you're just a normal trader cruising for charts, let me know what you think of this pattern formation and target.
TLDR; For Normal Day Traders
If we open up a chart for WTCBTC on TradingView, specifically looking at the Binance listing. The 4 hour time frame we can see that an Cup and Handle Pattern has formed. That's great and all for those that now what im talking about, but for new comers and curious peepers, we can explain how to trade this. We will be looking at a short term to medium term entry on WTC with an (hopefully!) expected 15%+ profit.
So what does this pattern mean?
The Cup And Handle Pattern is something, that along your Day Trading journey, you will see unsure traders and other technical analysis call this pattern before formation, but just as our luck has it we can see that Walton has formed a beautiful cup and handle pattern with a strong U shape bottom as well as the recurrent climb back up to its previous high after a fall. We are not looking for anything that resembles a V, if it looks more like a V than an U, you're possible looking at a tweezer bottom formation. After the nice climb we have entered and formed the handle for our pattern. The target we are aiming for is determined by the bottom of the formation to its high, so in our instance it roughly made a 20% climb back out of the bottom of the pattern. Using this we can determine where our exit target for profit should be after the resistance of the handle breaks.
Trading The Pattern
In the chart below I've gone ahead and highlighted the entry zone that would be appropriate for Walton after handle breakout. The prime entry zone for this Cup and Handle Pattern would be 13250-13750 Satoshi, with a still good entry being from 13750-14250. This highlighted zone, We are aiming for a mere 18% profit short term on Walton with the exit target being 16750. With this pattern and market volatility we aren't going to be looking to hold this coin very long if you do decide to enter.