Dogecoin Looks Set To Break Loose, But Which Route Will The Crypto Take? – Benzinga – Benzinga
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Dogecoin DOGE/USD was holding up better than Bitcoin BTC/USD on Friday, trading mostly flag while Bitcoin fell over 2%.
Dogecoin’s price action was taking place within Thursday’s trading range, which has settled the crypto into an inside bar pattern on the daily chart.
An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an "inside bar."
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.
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The Dogecoin Chart: Dogecoin’s inside bar is neutral because the stock has been trading sideways in a tightening range since April 11. Traders and investors can watch for a break up or down from the inside bar pattern later on Friday or on Saturday to take place on higher-than-average volume to gauge future direction.
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May 13, 2022 at 10:58AM