Skip to main content

BTC Charts

Trend


Long: Price moves up and indicators move up.

If Fisher is bullish (blue above orange) as well as RVI (green above red) while BTC trades above Middle DC i.e. 20-days EMA. Make sure that the previous trend has been exhausted while the new trend emerges with a volume. Otherwise, market has a tendency to consolidate or move sideways.

Short: Price moves down and indicators move down.

If Fisher is bearish (blue below orange) as well as RVI (green below red) while BTC trades below Middle DC i.e. 20-days EMA. Make sure that the previous trend has been exhausted while the new trend emerges with a volume. Otherwise, market has a tendency to consolidate or move sideways.

BTCUSD chart by TradingView



Moving Averages

Manually add EMAs (50,100,200).

In a bull market, EMAs are stacked in a normal order (50,100,200) whereas in a bear market EMA are stacked in a reverse order (200, 100, 50).

Strategy: Buy the dip in a bull market (50,100,200), sell the top in a bear market (200, 100, 50).

BTCUSD chart by TradingView



Volume

Measure the trend strength (increasing volume with price increase & vice versa). If you find any discrepancy between volume & price rise, mark the trend and see if that is a bullish / bearish divergence. Also draw trend lines to locate up-coming breakouts in advance to price breakout.

You should be able to answer:
  1. Is the stock rising on a weak volume?
  2. Is the stock falling on a weak volume?
  3. Is the stock on sideways and volume is rising or falling?

BTCUSD chart by TradingView



Momentum

Here you want to ensure that the momentum is picking up with the price. If the momentum is negative, i.e. trending down, the price will also follow that. Unless you see a divergence at extreme levels follow the trend.

Tips: 
  1. STAY NETURAL if Daily RSI is between 40-50 even if other indicators instruct to take a position.
  2. KST parameters - Turn them half for early calls.
  3. MACD:  Try to use SMI instead of MACD.



BTCUSD chart by TradingView



Comments

Post a Comment

Popular posts from this blog

Bitcoin (March 18-30): Integrated Gann Fan Analysis & Trades

https://invst.ly/6-gn0 In this chart you can clearly see how the time & price are related when the fall happens in early Gann angles (1/8 to 1/2) & then the price pulls back as a bear flag & then takes time until it reaches the Gann 1/1 (45deg angle). That severs as a resistance and the price moves along this line until it completes the correction cycle i.e. ABC. Then the price breaks out and results in a swing i.e. bull run since it is over 45 degrees & chances are greater that BTC will either move sideways or do a bull run. Based on this, I decided to go long.
Post a Comment
Read more

Bitcoin: The Golden Ratio

The price movement of BTC has several highs and lows. Timing the future is often unrealistic and many investors, who don't know math very well, stay away from a technical analysis. Often they totally ignore the power that such analysis may bring. Here is an example of BTC from Dec 2017 to March 2018. BTC is in fact following the golden ratio. If we would have known this before, we would be have been trading more effectively than we did in past. You can recreate such a map in your platform and then trace ahead the expected swings. I would advice to consider 5-10% error always due to news. As soon as this golden rule is broken like 15% error, you don't trade with this. While I am waiting for a breakout at 11.8, I thought to share this idea. Crypto Short
Post a Comment
Read more

Bitcoin: Eyeing a Reversal Confirmation

Bitcoin is on its way to confirm the reversal pattern. Here are the series of events that happened post the longest bearish trend (50-days long). June 23 was marked as swing zone based on Fibonacci Time Extension. The next day prints a Dragonfly Doji pattern,   which is traditionally a bullish sign. Attempted a panic sell situation but the price couldn't free-fall. Instead, BTC gradually dropped below 6K. Further drop could only put the CMF or volume higher resulting in a strong bullish divergence. This was also notable on the momentum indicators such as RSI. Note that we have not see so many bullish divergences of RSI in case of BTC. We have seen two major bearish divergences near psychological levels (20k, 10k). While the Awesome Oscillator shows twin peaks with some buyers strength. Here is another daily chart with other indicators. Note the swing zone 21 and the follow-up Doji. Conclusion: It is clear that the reversal pattern might b...
Post a Comment
Read more