BTC + wH Channel (alternative to bollingers and keltners)
This is the Channel by wH Indicators. The inner bands are a moving avg of the highs and lows while the outer bands are a version of ATR that addresses the problems that bollinger bands and keltner channels have with log charts (especially when the chart scaling is set to auto). Personally, I find that this channel is smoother than a bollinger or keltner while still being very responsive. The outer bands also happen to be great guides for placing and/or trailing stops.
Anyway, lets look at BTC w/ the wH Channel:
1. Price crossed the channel and started riding the lower band (vs a bounce). This was a clear sigh that the bears had taken control of the market.
2. Price pulled back to value near the inner bands and then aggressively sold off.
3. Price is pulling back to value again and (thru the lens of the channel) there is no sign that the bulls are in control yet. Price is still heavily biased towards the bottom of the channel and until that changes the bears are in control. About 70% of the time a pullback to value at the center of the channel will be followed by another push in the same direction. So, in probabilistic terms there is about a 70/30 chance that we will make another push down IMO. (This is a very 1-dimensional view of the market but I'm only considering price in relation to the channel ATM)
Anyway, the wH Channel script should be up on the wH-Indicators page sometime tomorrow. Several other indicators should be added later this week as well.
www.tradingview.com/u/wH-Indicators/
Anyway, lets look at BTC w/ the wH Channel:
1. Price crossed the channel and started riding the lower band (vs a bounce). This was a clear sigh that the bears had taken control of the market.
2. Price pulled back to value near the inner bands and then aggressively sold off.
3. Price is pulling back to value again and (thru the lens of the channel) there is no sign that the bulls are in control yet. Price is still heavily biased towards the bottom of the channel and until that changes the bears are in control. About 70% of the time a pullback to value at the center of the channel will be followed by another push in the same direction. So, in probabilistic terms there is about a 70/30 chance that we will make another push down IMO. (This is a very 1-dimensional view of the market but I'm only considering price in relation to the channel ATM)
Anyway, the wH Channel script should be up on the wH-Indicators page sometime tomorrow. Several other indicators should be added later this week as well.
www.tradingview.com/u/wH-Indicators/
Comment:
Notice how price treats the middle of the channel as support when the bulls are in control *green arrows) and resistance when the bears are in control (red arrows).
