Trade analysis:
Bitcoin in both cases is in a symmetrical triangle pattern. In technical analysis that is easily recognized by the distinct shape created by two converging trendlines. The pattern is identified by drawing two trendlines that connect a series of sequentially lower peaks and a series of sequentially higher troughs. Both trendlines act as barriers that prevent the price from heading higher or lower, but once the price breaches one of these levels, a sharp movement often follows. This patterns are known to experience early breakouts , the most possible trade is a long because of the long term trend, but hold off at least for a second candle of confirmation to determine whether or not the breakout is for real. On the other hand bollinger bands are tightening, which is a signal of decreasing volatility an a indicator of a stronger breakout.
As we can see, the moves of the charts are almost identical, although they have differents quote currency (US Dollar and Chinese Yuan), it is because the pair is almost only affected by the movement of the bitcoin as it base currency.
What is bitcoin?
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto, who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without an intermediary. Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain. The ledger uses bitcoin as its unit of account. The system works without a central repository or single administrator, which has led the U.S. Treasury to categorize bitcoin as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.
Bitcoin in both cases is in a symmetrical triangle pattern. In technical analysis that is easily recognized by the distinct shape created by two converging trendlines. The pattern is identified by drawing two trendlines that connect a series of sequentially lower peaks and a series of sequentially higher troughs. Both trendlines act as barriers that prevent the price from heading higher or lower, but once the price breaches one of these levels, a sharp movement often follows. This patterns are known to experience early breakouts , the most possible trade is a long because of the long term trend, but hold off at least for a second candle of confirmation to determine whether or not the breakout is for real. On the other hand bollinger bands are tightening, which is a signal of decreasing volatility an a indicator of a stronger breakout.
As we can see, the moves of the charts are almost identical, although they have differents quote currency (US Dollar and Chinese Yuan), it is because the pair is almost only affected by the movement of the bitcoin as it base currency.
What is bitcoin?
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto, who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without an intermediary. Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain. The ledger uses bitcoin as its unit of account. The system works without a central repository or single administrator, which has led the U.S. Treasury to categorize bitcoin as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.
Trade closed: target reached:
We closed half of the position.
We will exit all, after a signal of trend reversal
We will exit all, after a signal of trend reversal
Analisis del trade:
Es un patrón gráfico utilizado en el análisis técnico que se reconoce fácilmente por la forma creada por dos líneas de tendencia convergentes. El patrón se identifica mediante la elaboración de dos líneas de tendencia que se conectan una serie de picos secuencial mente más bajos y una serie de valles secuencialmente más altos. Ambas líneas de tendencia actúan como barreras que impiden que el precio las supere, pero una vez que el precio atraviesa uno de estos niveles, se espera un movimiento fuerte en dicha dirección. Este patrón tanto al alza como a la baja, suelen tener rompimientos falsos; el trade con más posibilidad es al alza debido a la tendencia a mas largo plazo, sin embargo es bueno esperar al menos una segunda vela de confirmación para poder determinar con seguridad que el rompimiento es real. Por otro lado, tenemos que las bandas de bollinger están estrechas, lo cual es una señal de decrecimiento en la volatilidad y un indicador de un ruptura mas fuerte.
Como podemos observar, los movimientos de los gráficos son casi idénticos aunque tienen diferentes moneda de cotización ( Dólar y Yuan chino) , esto se debe a que el par es casi únicamente afectado por el movimiento del bitcoin como moneda base .
Que es bitcoin?
Bitcoin es una moneda virtual, que fue implantada en el año 1999, esta moneda no se rige bajo la autorización de bancos o gobiernos, por lo que no es producida ni sancionada por estos. Es decir no existe un organismo detrás de esta moneda si no que funciona de usuario a usuario. Las transacciones hechas con bitcoin son a través de una manera gremial vía internet, lo que quiere decir que estas transferencias de la moneda bitcoin pueden realizarse nacional e internacionalmente, transfiriendo diferentes cantidades entre dos dispositivos, sin necesidad de asistir a un banco u organización que se encargue de dicha transacción. Las bitcoins pueden ser intercambiadas por bienes y servicios siempre y cuando el vendedor acepte estas como forma de pago.