@CryptoEngineering, nice analysis, love the 3 charts next to each other!
CryptoEngineering
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@AnotherAnalyst, The patterns do repeat themselves -- and with good reason. The stock market is governed by a set of two principles: supply and demand ; and fear and greed. Both are based on human nature, and human nature doesn't change. In a bear market, all stocks are taken down. Greed gives way to fear, and investors can't sell fast enough.
I also like your prediction, dude!
lucamodena
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Cool analysis. Could you describe which moving averages did you use?
AnotherAnalyst
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@lucamodena, Thanks! Yah, so the two bigger lines are weekly moving averages 200 and 50 (to put on daily it is 1400 and 350) and the two smaller ones are daily 200 and 50. :P nothing to crazy. red lines are 50 and blue lines are 200
lucamodena
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@AnotherAnalyst, so basically you agree with the PoopCannon analysis that the golden cross (intersection between daily 50 and 200 MA) will lead to a short-term retracement and only after that we will head north?
AnotherAnalyst
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@lucamodena, essentially yah, although i didn't get the idea from PoopCannon. I felt like the price could've been propped up artificially to make the golden cross happen. I've also noticed in my forex trading that these MA's tend to oscillate a few times before a new trend takes off. These "basic" trading strategies don't really work the way they are taught, but it is something a lot of traders watch so it's worth watching also. Just because this cross happened doesn't mean it's going to take off, in reality it show's you that the move up has "already" happened, since they are lagging indicators. Price should range sideways for a little bit, while traders try to make up their minds. I'm more interested on how price reacts to the weekly MA's because it has shown reactions in the past.