Volume and Money Flow NOT confirming Price action
When my last chart pattern failed to follow-through as expected I decided to go back and hit the books to try to find out what is going on. Is this break out real? Is this it? Is this the big Head and Shoulders Northern run that EVERYBODY, GOD, AND HIS DOG have been talking about for the past month?
Maybe.
Maybe not.....
While reading Investopedia I started working with a short term volume signal called the "Chaikin Money Flow" indicator. From what I can see on the DAILY chart is a DIVERGENCE in what the BTC price is doing and what the underlying volume is doing.
What it is saying to me is: "Although the price has moved higher, we, the overall BTC market, is not that interested in supporting this current move"
What it might also be indicating is that a few BTC Whales are enjoying themselves buying the bid and pushing prices higher but the rest of the BTC fan base is waiting for something else entirely different.
At least I am.
Waiting for something entirely different that is.......... Then, at some point, I'll back up the truck.
Maybe.
Maybe not.....
While reading Investopedia I started working with a short term volume signal called the "Chaikin Money Flow" indicator. From what I can see on the DAILY chart is a DIVERGENCE in what the BTC price is doing and what the underlying volume is doing.
What it is saying to me is: "Although the price has moved higher, we, the overall BTC market, is not that interested in supporting this current move"
What it might also be indicating is that a few BTC Whales are enjoying themselves buying the bid and pushing prices higher but the rest of the BTC fan base is waiting for something else entirely different.
At least I am.
Waiting for something entirely different that is.......... Then, at some point, I'll back up the truck.
Trade active:
It is comforting to see that the divergence noted on the chart actually hinted to the price action about to follow. That was plenty of time to get out of the way for anybody that was long and watching that particular indicator. I'll have to keep that one in my tool box and check it from time to time. :)