Hey man! thanks for sharing :) your way of analizing is really interesting, how is it called? do you know how likely it is that it behaves similar as before?
iCantw84it
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@neteresy, The psychology of retail as they get behind or against what institutional is doing at the price it currently is at is the main catalyst of change. so as emotion agrees with what is going to be a standard, the Algo, the size and time it takes to achieve waht the algo wants to do changes and either is stretched out or shrunk. If retail pushes this way past the mark of where the algo wants to go then the algo skips ahead to what the next step is....if retail is fighting the algo and the algo is no longer able to achieve what it needs to do, it will re test 2 more times then dump all of its shares and find a lower point of structure to restart its accumulation process.
Sorry so long but thats the easiest way to answer that question.
Another way to look at it is this. If the type of person who invest in a certain stock is for the most part the same, the stock moves fast and easy to each objective.... in the case of BTC if the stock has a wide variety of types of personalities investing in it... It will struggle until a common support is found and the resistance is slowly resolved and turned into support or they let go of their shares and stronger hands takes control of those shares and holds.
iCantw84it
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neteresy
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@iCantw84it, thank you! so you are saying that finding a pattern of how people behaved before in about 7 hours is a strong indicator?
iCantw84it
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@neteresy, anything long is stronger then what ever is smaller...its fractal. So depending on what you want to trade and how long you are planning on trading it is kind of important in determining the right time frame to plot your path on.
I use this. Daily = weekly to monthly time in trade.
4 hour Week long
1 hour intraday
15 min looking for specific pops in the market that should finish before end of day if found before 1pm. If after it should carry you through mid day the next day.
anything less has too much noise for how I trade but im sure you can still use it. Just not as dependable. Finding strong moves and using something like the 1 min to see how the market is responding to that move is something I do if I want to see a faster result to rejection or the build up of a pop.