TEZOS RETRACE (XTZ/USD)

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Low Time Frame Accelerated Selling

The Tezos USD pair has retraced 25% off of the recent all time high. Any time a market gives back close to the 25% number it’s time to start looking for bounces and/or continuation. This is purely from a mathematical market algo perspective.

The 3 green percentage boxes show a fairly congruent 3 Drives pattern that is resolving itself into accelerated selling. The 3rd green box will have a larger total percentage due to accelerated selling, but for the 3 Drives calculations we measure it to support, and then add the acceleration. The most likely accelerated selling bounce targets are the “retail raid” levels and S/R.

The Support/Resistance level is defined by the convergence of the previous bottom and an old high at the same level. The retail raid levels are defined by the breakout above the diagonal downtrend, the spot where most retail traders take the “safest” long.

Accelerated Selling

Accelerated Selling is defined by the panic sellers that let go of a position below trend support. It’s basically the resolution of a Wyckoff Market Model cycle. In this case just a short term pattern.

Accelerated selling tends to be where markets experience the most mass liquidations/margin calls/covering/stop loss triggering within the shortest amount of time. The accelerated stage often fully retraces and therefore becomes the best time to buy. The retraces almost always go back to the support line, and often returns to the top of the old price channel.

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