We also use past history to study the behavior of an asset over time and compared to other assets in the market.
So a young chart is a huge disadvantage as there is no past history so we can only focus on what happens next...
BANDBTC is now trading above EMA10, we consider this to be . But if it moves lower we become ... Each on this chart goes for 1 hour... The charts are always changing.
Above the magenta line, which is the last peak and resistance, BANDBTC can move higher. Below it, it can do sideways consolidation.
The blue dashed line is the support, if this one breaks then BANDBTC moves lower and tests EMA50 (0.00006818), if EMA50 breaks it will go lower to test the big dashed blue line. Below this level, it would go for the next support.
Each level offers the opportunity for a bounce.
Two potential scenarios are drawn on the chart with green and red arrows.
The numbers on the chart are the Fib. proportions from low to the last peak. Below the current price, these numbers can work as support levels, above the current price, we call them resistance levels or targets.
Feel free to leave a comment and share with me/us your thoughts.
This is Alan Masters...
Thanks a lot for your continued support.