My charts aren’t pretty, but my analysis is of the highest quality where time and effort is taken to explain my reason for my conclusions. I explain why I use an indicator without the presumption that everyone just knows why certain indicators work together. In fact, I rarely use indicators because there really is no need unless the chartist is going to explain what the indicator is telling the consumer of that information why that indicator is practical for that analysis.
So why do you chart on TV, Biff?
Life has been good to me, and I enjoy charting cryptos because the price action is driven by pure emotion, fake news, celebrity hype, but most importantly, I chart cryptos because I believe the blockchain is here to stay and while most cryptos will be history in the years ahead, some will remain and become mainstream and widely accepted as a real store of value. I want to be where the action is and try my luck. I want to see new charting techniques, and new indicators being scripted to reduce the risk of loss.
Enough with the lecture – I am sure this will get about 100 views but if 1-person is enlightened by my words and begins to learn, on their own, from some of the great chartists on TV, then the time invested in typing these words will be worth it. There is no magic bullet!
BTC on the 4-hr, a deeper look into my last chart of BTC on the daily:
BTC is trading in a trend channel with the Orange dotted primary base still intact (4-data points), and probability suggests it may hold as support.
The upper green has been breached, so it is now a resistance reference. I give it less weight when they have been breached.
I noted a formation with two solid at the upper level of the channel. This is a perfect example of how a specific price distribution can be interpreted as , or ; nonetheless, if you follow me you would have noted the squeeze and may have predicted a move. Notice the price action was driven higher to stop out long positions and they reversed to stop out short positions to clear the boards for the coming price action. This is a common price action play to allow big money to dig in too long or short positions. Never rule out manipulation. Remember someone can see where the stop losses are, and where the buy orders are – JPMorgan can see that information not available to retail commodity traders who trade precious metals so JPM can “clear the boards” to scare the retail investor away. This is common knowledge to PM investors and prevents us from overnight PM trading.
If you follow me on Twitter you received a tweet indicating I was calculating the first 4-hour move on a run of about $130.00. The squeeze on the two extended red candles amounts to about $125.00, while not part of the move, I was able to calculate the move with some accuracy. This is not a secret, and ANYBODY can do this. If you follow me, you are learning how and why this happens, what formations to look for. This can help you make better decisions on your current position or decide to hold off on an entry or exit. I have successfully predicted moves MANY times in the past, in some cases within a few candles of when they occurred.
BTC is still on the daily, even if the price falls to $37XX. XX or trades to the orange Dotted primary and it holds as support. I also noted in a Tweet that the last 2 moves happened around 8 days indicating if this is institutional buying and past proves future, we should see another move by Feb 26-28. Since the current trend is a continuation, probability lends itself to a move.
My gut tells me we stall at $4400 if we go north. Color me skeptical. I am concerned about the recent red candle extensions. It portends we can go either direction in the short-term, or we continue to see a nice price distribution sideways to lower and another move.
I am not a BTC investor. I find it easier to manage my altcoins, and the only reason I cover BTC is that the top alt coins are so heavily correlated to BTC and, therefore, I must follow it.
If you enjoy hearing real analysis and want to hang with Biff, consider following me on Twitter , and giving this chart a Thumbs up so people new to charting can hear the truth about charting and maybe some long-time chartist can enlighten me on what technique, or information they possess to make calls like, we have reached bottom, or we have reached top. I really would like to know, in fact, I will pay for that kind of knowledge.