A Study of consolidation period bias since the November rally

MTGOX:BTCUSD   Bitcoin / U.S. Dollar
310 0
It can be helpful to zoom out and look at the general bias or "slant" of a consolidation phase (a period immediately following a large/steep spike or selloff. Such dramatic movements are typically followed by the market's attempt to establish the "new normal". This is often charted with the 50% retracement to find that zone of consolidation. But here I just wanted to study such periods result in new movements.

From what I'm seeing, flat (neutral) sideways consolidations, or positive (upwards slope) bias results in another rally (even if short-lived). While any negative bias is a strong sign of an impending selloff.

This is particularly relevant in the current pattern, which is being constrained tightly above and below into a straight sideways motion. Based on this analysis, such flat motion is inherently bullish .
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out