C I M Ξ T R I C S
TOTAL3 1 day chart
The sideways market pattern we've seen in recent days reminded me of an interesting theory...
Wyckoff's Law of Effort versus Result:
"Effort" refers to the trading volume (the number of shares, contracts or currency - crypto - being traded), while the "result" is the price movement. Wyckoff suggests that if there’s a lot of effort (high volume) but little movement in price, it might indicate that the market is preparing for a significant shift, such as a reversal or trend break.
The logic behind this law is that in an uptrend (even if it's a short one), buyers tend to keep buying, while the natural market exhaustion process tries to push the price in the opposite direction (people locking in profits or anticipating a trend change and selling). This battle between supply and demand leads to periods of high volume but little price change. Since the natural tendency of volume is to decrease over time (unless there's a strong catalyst to keep the pressure on), the higher probability is for a reversal in the movement.
Let's wait and see how far the pullback will take the price to see if this resistance break will lead to a new uptrend.
Wyckoff's Law of Effort versus Result:
"Effort" refers to the trading volume (the number of shares, contracts or currency - crypto - being traded), while the "result" is the price movement. Wyckoff suggests that if there’s a lot of effort (high volume) but little movement in price, it might indicate that the market is preparing for a significant shift, such as a reversal or trend break.
The logic behind this law is that in an uptrend (even if it's a short one), buyers tend to keep buying, while the natural market exhaustion process tries to push the price in the opposite direction (people locking in profits or anticipating a trend change and selling). This battle between supply and demand leads to periods of high volume but little price change. Since the natural tendency of volume is to decrease over time (unless there's a strong catalyst to keep the pressure on), the higher probability is for a reversal in the movement.
Let's wait and see how far the pullback will take the price to see if this resistance break will lead to a new uptrend.
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What the 3 charts means? Altcoins still in an indecision zone, even starting a pullback it kept the sideways pattern. If the money was better distributed probably BTC and Alts would keep rising, but BTC dominance is high and going up.
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C I M Ξ T R I C S
TOTAL3 took longer than expected to start the pullback and we need to see if this small support will hold or not the price. Was almost a week of market indecision, bulls tried to keep the rally but the pullback was stronger. Anyway this "fight" is a good…
It took even longer than expected but now it's pullbacking. Let's see how far down it will reach. This resistance in retracing is a bullish signal.
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