Weekly BTC - New to Twitter. Hit Me UP! @WolfpackCrypto
What up ya'll -
Let's get right to it. There isn't too much to discuss in Crypto-land, but this week could be decisive so I'll definitely be on top of it. I'm also going to push an Ethereum update here as well as the price action is looking interesting.
Bitcoin staged a nice start of the week up 4.5%. Is this just a dead cat bounce?
As a bull what do we want to see?
1) . We want to see the current weekly candle close at minimum 50% of the prior week candle. So if you see where my "counter-trend buy" line is at...this is where we want bitcoin to close this week minimum.
2). We see a positive divergence on the RSI holding
3). It's hard to see the IHS pattern on the weekly, but this pattern is still technically speaking valid. BTC never closed below the left shoulder.
4.) If we do drop below the left shoulder it's imperative we close above the 200 WMA currently around 3.2k.
As a bear what do you want to see:
1). Hope this is a dead cat bounce
2). Have a weekly close below the left shoulder ideally retesting the Dec low of 3.1k.
3). If the 200 WMA is not defended by the bulls there is a potential target to 2.5k very quickly.
January 12th, 2015 was the week of capitulation. Will history repeat itself or will bulls stage a victory testing the neckline of the IHS again? Read my recent analysis to find out why $3,965 is a HODL price for BTC
Education:
I've seen many examples on trading view of TA's with literally 50 trend lines, as many moving averages and on top of that 10 trading indicators...THIS NEEDS TO STOP!!!!!!!
-What do you need to trade successfully:
1). Read and study Peter Brandt. He has several books, he's on twitter and he's the master of charts (over 40 years professionally)
2). Learn to recognize classical chart patterns (wedges, triangles, diamonds, flags, Head and Shoulders, etc etc). In fact Peter doesn't even use indicators. He goes 100% off the patterns in a chart because he says why use an indicator which is just a derivative of price when I can just study the price. I'm not that good so I use indicators.
3.) You only need 2 trading indicators. One that is a leading indicator which can tell you when to buy or sell or do nothing. The second should tell you when the price action is overbought, oversold or spot divergence. For me all I need is Stochastic and RSI. Sometimes I'll throw in MACD to spot divergence patterns more since it's more of a lagging indicator.
4). Form your technical framework for trading on higher time frames like the Daily or Weekly. Use the 2-4hr charts to execute trades.
5.) Use moving averages as further guidance where potential supports and resistances will be.
6.) Get to know your friend Fibonacci.
Keep your TA as clean and simple as possible. That's when you know you've done it right. You don't need to overcompensate with extra indicators or insane amount of trend lines and colors to look smarter.
Let's have a good week and keep on collaborating! Strength in numbers brah!
Bobby
-Don't hate the hair, hate the game.
Let's get right to it. There isn't too much to discuss in Crypto-land, but this week could be decisive so I'll definitely be on top of it. I'm also going to push an Ethereum update here as well as the price action is looking interesting.
Bitcoin staged a nice start of the week up 4.5%. Is this just a dead cat bounce?
As a bull what do we want to see?
1) . We want to see the current weekly candle close at minimum 50% of the prior week candle. So if you see where my "counter-trend buy" line is at...this is where we want bitcoin to close this week minimum.
2). We see a positive divergence on the RSI holding
3). It's hard to see the IHS pattern on the weekly, but this pattern is still technically speaking valid. BTC never closed below the left shoulder.
4.) If we do drop below the left shoulder it's imperative we close above the 200 WMA currently around 3.2k.
As a bear what do you want to see:
1). Hope this is a dead cat bounce
2). Have a weekly close below the left shoulder ideally retesting the Dec low of 3.1k.
3). If the 200 WMA is not defended by the bulls there is a potential target to 2.5k very quickly.
January 12th, 2015 was the week of capitulation. Will history repeat itself or will bulls stage a victory testing the neckline of the IHS again? Read my recent analysis to find out why $3,965 is a HODL price for BTC
Education:
I've seen many examples on trading view of TA's with literally 50 trend lines, as many moving averages and on top of that 10 trading indicators...THIS NEEDS TO STOP!!!!!!!
-What do you need to trade successfully:
1). Read and study Peter Brandt. He has several books, he's on twitter and he's the master of charts (over 40 years professionally)
2). Learn to recognize classical chart patterns (wedges, triangles, diamonds, flags, Head and Shoulders, etc etc). In fact Peter doesn't even use indicators. He goes 100% off the patterns in a chart because he says why use an indicator which is just a derivative of price when I can just study the price. I'm not that good so I use indicators.
3.) You only need 2 trading indicators. One that is a leading indicator which can tell you when to buy or sell or do nothing. The second should tell you when the price action is overbought, oversold or spot divergence. For me all I need is Stochastic and RSI. Sometimes I'll throw in MACD to spot divergence patterns more since it's more of a lagging indicator.
4). Form your technical framework for trading on higher time frames like the Daily or Weekly. Use the 2-4hr charts to execute trades.
5.) Use moving averages as further guidance where potential supports and resistances will be.
6.) Get to know your friend Fibonacci.
Keep your TA as clean and simple as possible. That's when you know you've done it right. You don't need to overcompensate with extra indicators or insane amount of trend lines and colors to look smarter.
Let's have a good week and keep on collaborating! Strength in numbers brah!
Bobby
-Don't hate the hair, hate the game.