TheSpringHunter

The pin bar was a reaction from the 78% Fib retracement and also an equal 1 to 1 AB=CD, but now let's see whether there will be a follow-up and price confirmation for long. This level is also a 61% retracement of the bigger swing up so a confluence point. For now, I don't see a definite entry signal unless I want to buy the level which I often do at the higher timeframes.The risk to reward shown is what will be the target if you pick the 161% extension for a target.Notice the outside up bar or what people call an Engulfing bar. The bounce is from yesterday's open - there is nothing esoteric in the bar itself, but its happening in a good area.Both the 30-minute and the 1-hour charts at the moment show a regular divergence.

Solana had a bullish flag breakout in the longer timeframes (check my other related Daily analysis).Currently, a potential technical setup might play out for a shorter-term trade or addon to the first one. We have an AB=CD measured move. Volume profile - notice how the first bullish bar that reacted from the support level occurred on higher volume compared to the test afterward which is on lower volume. This is always a positive confirmation that we want to see a breakout.We hope for a test of the previous high and a runner.

Solana was consolidating after an excellent move up. The consolidation looks like flagging to me and happened on lowered volume which is what we want to see.Price pulled back to the previous support where it bounced and formed a pin bar indicating my favorite Spring action setup. The Spring offered a 1 to 1 opportunity for scaling out.Now there was a visible breakout of the flag formation. We want to see a test on lower volume and then the price action target I typically use is the 161% Fibonacci extension therefore fairly reasonably Solana can reach easily 150 in the next run before meeting some logical price action resistance zone.

BTC - Spring setup + regular divergence at 4H Spring from the 61% Fib retracement. Plus some divergence. What we observe: Area of support where stops were taken out and now we have a good entry bar on raising volume. Technicians will call this a 2-bar Outside reversal after the Bull Outside bar formed. One of the longer targets is the 161% extensions level - there is a low probability of reaching it according to the backtests, but the risk to reward is sufficient in the long run. We do not deal with certainties, but probabilities as usual. Also, for confluence, we have a regular bullish divergence which adds to the probability that 1 to 1 move is highly likely. Some people might decide to book some profits at 1 to 1 and put stop to BE while waiting for the longer targets.