entertheroach

BTC - 4hr Chart update and the importance of where the candle...

Long
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
...closes

BTC has has said good riddance to the Bearish Descending Triangle it was in.

BTC is back in the Bullish Zone of the Ichimoku Cloud for this 4hr timeframe. Note we have had a Cloud (Kumo) Twist into a bullish green cloud for this 4hr timeframe.

BTC is back above its 50EMA for this 4hr timeframe.

BTC is back above its Bollinger Bands Middle Band Basis 20 Period SMA . Note that the Bollinger Bands Upper and Lower Bands are expanding further apart indicating increased volatility and that the price found some resistance at the upper band.

BTC is back above its Volume Profile Visible Range VPVR Point of Control (POC) for this chart set up.

I have added a Volume Profile Fixed Range VPFR and as you can see, BTC is above that Point of Control (POC).

Reason for adding the VPFR is that it gives a more clearer macro view of buyer and seller volume and where the key points are for the range that i’ve selected, whereas the VPVR gives you the amount for whatever length you have your chart set at which could be potentially misleading. Blue representing Buy Volume and Yellow representing Sell Volume .

Note that the last 6 4hr candles closed above its Volume 20 Period Moving Average.

The Average Directional Index ( ADX DI) is indicating a strong trend with the ADX (Yellow Line) at 27.02 back above its 9 Period EMA (Blue Line) which is at 22.64. The +DI (Green Line) is at 32.90 and has crossed back over the -D (Red Line) which is at 10.77 indicating that positive momentum is now stronger than negative momentum for this 4hr timeframe.


The Chaikin Money Flow ( CMF ) is showing that BTC is back in the Accumulation Zone with the CMF (Green Line) at 0.14 and back above its Least Squares Moving Average ( LSMA ) which is at 0.08 indicating renewed accumulation strength for this 4hr timeframe.


As i mentioned in a few previous BTC post, a very CRUCIAL level for BTC was the Weekly 50EMA, a few traders were posting on TradingView saying that BTC was going to sub $20K, they ignored the fact that BTC would FIRST have to CLOSE this weekly candle below the weekly 50EMA, BTC did wick below it, but it did not close a weekly or a daily candle below the weekly 50EMA level. For whatever timeframe you are in, especially longterm, it is important to remember the IMPORTANCE of where the CANDLE CLOSES. Otherwise…. you’ll just be wick-ing about! :-)

As you can tell, my post are not price prediction post as there are many more experienced traders on TradingView already posting their predications, my post are more educational, showing what these various indicators & squiggly lines that i use are showing me, so I hope this is helpful with your trading and hodl-ing.






Comment: Here is a closer look at the Volume Profile Fixed Range VPFR levels and Point of Control (POC).

Comment: Please note that in the above post the sentence saying "Note that the last 6 4hr candles closed above its Volume 20 Period Moving Average." is a rushed typo & should actually say "Note that the last 6 4hr Volume Bars closed above its Volume 20 Period Moving Average.

Cheers