I'll say this first thing... If you're a swing trader, or any kind of trader and aren't using the Heiken-Ashi in your charts in conjunction with MA and Continuation Modeling... This may change your trading life.
Keep in mind, I only use Heiken-Ashi as my main strategy, BUT only in conjuction with other methods like the 50/200 MA, Support/Resistance and Bollinger bands. (Even Parabolic SAR). I see too many people rely on RSI and MACD, and honestly I feel those are more oscillators than anything. It doesn't necessarily give you a good picture of trend.
So today I wanted to take a look at the overall picture of BTC through utilizing mostly Heiken-Ashi and Bollinger (since the 50/200 MA strategy I feel is more suited for small scale to intermediate forecasting). If you want to get a basic resource explaining the Heiken-Ashi strategy, this is a good place to start: tradingstrategyguide...eiken-ashi-strategy/ (or even just googling it).
In short, the strategy uses an average. Generally you're looking at solid columns for trends.
If a red bearish candle has no wicks on top, it will likely continue to go down. If a green bullish candle has no wicks on the bottom end, its a possible up trend. There are SPECIFIC rules, so please refer to my link for any detailed info.
On the BTC weekly chart, we see a pretty clear flag formation that we are currently in, with 14k being the second of the double tops inside the flag. So, what to expect next? As you can see with the parabolic runs from 4k to 14k, they practically were all bullish engulfed green candles without wick on their bottoms all the way up until the 14k candle. The next two green candles that week had wicks on both ends, meaning a possible reversal pattern (bullish).
The one thing to note is the full green candle last week that did not wick on the bottom followed by the current week that is red, but has no real price action towards a specific point which basically means the a reversal pattern is coming OR sideways action in a specific price-range.
There are two ways this can work out.
1) The weekly candle we are in is just a continuity candle, which means bullish action to come but just at a later time. (possibly over 12k at some point).
2) This is part of a reversal pattern and red bearish candles without wicks may be coming soon, indicating down trend from here. My personal feeling is that option 2 is the right scenario (at this point). We need to watch the next month's candle to see what it does to get a better idea of our uptrend continue or not. HOWEVER, Bollinger Bands are showing possible down side and it seems to go towards option 2.
If option 2 is in play, we are headed for a downtrend and a possible triple bottom on the triangle at 4-5k. Remember, 200MA is still around 4300 on the weekly which fits into my option 2 scenario.
In short, I do believe we are likely headed much lower, back into the 4/5k territory to scoop up some cheap BTC before trying to hit the triple top and breakout of the flag.
Let me know what you think. Leave your comments and your likes.
Keep in mind, I only use Heiken-Ashi as my main strategy, BUT only in conjuction with other methods like the 50/200 MA, Support/Resistance and Bollinger bands. (Even Parabolic SAR). I see too many people rely on RSI and MACD, and honestly I feel those are more oscillators than anything. It doesn't necessarily give you a good picture of trend.
So today I wanted to take a look at the overall picture of BTC through utilizing mostly Heiken-Ashi and Bollinger (since the 50/200 MA strategy I feel is more suited for small scale to intermediate forecasting). If you want to get a basic resource explaining the Heiken-Ashi strategy, this is a good place to start: tradingstrategyguide...eiken-ashi-strategy/ (or even just googling it).
In short, the strategy uses an average. Generally you're looking at solid columns for trends.
If a red bearish candle has no wicks on top, it will likely continue to go down. If a green bullish candle has no wicks on the bottom end, its a possible up trend. There are SPECIFIC rules, so please refer to my link for any detailed info.
On the BTC weekly chart, we see a pretty clear flag formation that we are currently in, with 14k being the second of the double tops inside the flag. So, what to expect next? As you can see with the parabolic runs from 4k to 14k, they practically were all bullish engulfed green candles without wick on their bottoms all the way up until the 14k candle. The next two green candles that week had wicks on both ends, meaning a possible reversal pattern (bullish).
The one thing to note is the full green candle last week that did not wick on the bottom followed by the current week that is red, but has no real price action towards a specific point which basically means the a reversal pattern is coming OR sideways action in a specific price-range.
There are two ways this can work out.
1) The weekly candle we are in is just a continuity candle, which means bullish action to come but just at a later time. (possibly over 12k at some point).
2) This is part of a reversal pattern and red bearish candles without wicks may be coming soon, indicating down trend from here. My personal feeling is that option 2 is the right scenario (at this point). We need to watch the next month's candle to see what it does to get a better idea of our uptrend continue or not. HOWEVER, Bollinger Bands are showing possible down side and it seems to go towards option 2.
If option 2 is in play, we are headed for a downtrend and a possible triple bottom on the triangle at 4-5k. Remember, 200MA is still around 4300 on the weekly which fits into my option 2 scenario.
In short, I do believe we are likely headed much lower, back into the 4/5k territory to scoop up some cheap BTC before trying to hit the triple top and breakout of the flag.
Let me know what you think. Leave your comments and your likes.