A rather uncommon signal has appeared on the BCH weekly chart.

Looking through the historical records, this same type of signal has only appeared three times before—with very extreme outcomes: one time resulted in an immediate 50% drop, while the other two led to rallies of 58% and 102%, respectively. Such all-or-nothing moves can definitely be exciting.

But here’s a reality check: the last time this signal appeared, the market took a full 70 days to really start moving.

During those 70 days, the price chopped back and forth within a range, with total volatility approaching 50%. In other words, even if you knew the general direction in advance, rushing in would likely have resulted in getting whipsawed.

So the current situation is this: the direction might be promising, but timing is everything. Don’t get too excited just because you see the signal—patience is more important than courage.