Nick_Core

₿itcoin to Bitcoin Cash Live Divergence Early Indicator

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
The green with the blue fill is ₿itcoin's live price, The dark pink is BCH's dollar value and light pink being BCH/₿TC ratio.

I watch this price action closely so I can spot divergences on BCH's next rally, they generally track in the opposite direction ₿TC is dominating but when BCH is building up for a rally the price action begins to diverge prematurely temporarily tracking ₿TC's rally upwards opening up an easy to spot entry point. When they begin to diverge back to opposite movements BCH stops its price mirroring of ₿TC setting up your BCH exit point.

EXAMPLES

Showing price tracking to Bitcoin dominance then the divergence setting up a Bitcoin Cash entry

Showing current price movement

All of this should be used with your typical momentum indicators but it is an effective tool to watch in tandem.
All posts are for educational purposes and are simply my views of markets conditions. Please see https://www.thetradingwizard.com/automation for access to free scripts.

Please do your own research and use my content to educate yourself.

Comments

Was the huge divergence on december 7th a sign?
+1 Reply
Nick_Core TonyCryptano
@TonyCryptano, Yesterday?
Reply
TonyCryptano Nick_Core
@Crypto_Core, From the time I wrote this comment, it was 19 hours ago. Sorry, our time zones are different.
Reply
Thanks for insight. I've been accumulating. What's your stop-loss if you have one? Also what do you think the adding of BCH to Coinbase on January 1 will do? Do you see a lower price because of the flood of new supply and people selling?
+1 Reply
Nick_Core CryptoKid26
@CryptoKid26, My stops are based on the market conditions at the time, on Coinbase I am not sure yet, yes a massive amount comes on the market so it should deflate the price, but at the same time there is lots of buyers. That being said I am a Bitcoin supremacist. :) That is another conversation in itself, this is simply a tool for traders to watch for.
+1 Reply
CryptoKid26 Nick_Core
@Crypto_Core, Thanks. Yea even if BTC Supremacist, you can still trade BCH. I noticed what you pointed out (Not to this extent/detail). The fact most people won't buy for a trade out of principle that its BCH makes me question Dogmatic power of cryptos
+1 Reply
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