Gaussian Channel: why its important (a BTC review)
First off, I highly urge any of you reading this to start using the Gaussian Channel as a "back up indicator" to test your hypothesis'.
Everyone wants "indicators that don't lag" - and what they're really trying to say is they want indicators that tells them what to do. That's not exactly how the trading game works lades and gents . There are no magical unicorn indicators that tell you perfect timing and price. There just isn't...
Second, the reason I like referring to the GC is exactly because it can be a very lagging indicator. So much so that it can give you a much clearer picture of the ACTUAL trend, and not just succumb to the spazziness of Bitcoin's price as it gives you a wider perspective than just what the good people at Tether that manipulate the living mess out of this digital currency want you to see. (Making traders look at their right hand, while doing something completely different with the other hand... Which is exactly what this 40% pump was btw).
You will notice on the main chart that the parabolic run after we corrected from 3k mostly began almost immediately AFTER the Gaussian daily turned green. Which is why I think that ALL of you should have it as an indicator (on the daily) to know when this correction is officially over.
Now........ There ARE CAVEATS TO THIS fully being the case, because as you can see, during our trip down from 20k, the Gaussian daily HAS turned green on its way down to 3k at least TWICE without the correction actually ending.
IMPORTANT RULE: IF the price goes under the median line of Gaussian Channel daily when the channel is green , NO BUENO MUCHACHO. Which makes that median line a perfect stop loss price region if you decided to go into a long wanting to catch the parabolic run. It also gives you the go ahead to immediately switch to a short position.
So let's get to the nitty gritty here folks. As you can see in the main chart, Gaussian Channel daily is STILL RED. This is why I keep telling people thinking we're going to 20k in the next two days to bet me their paychecks because *ITS*NOT*HAPPENING*PERIOD*. Not today, not tomorrow, not a week from now, not a month from now or even two months from now. We have a date with another (hopefully short lived) bear run.
The other thing I want you guys to notice if you decided to install the Gaussian Channel indicator is that both the monthly and weekly are still GREEN. So therefore, I suspect that whenever the daily decides to turn green, that should be a good signal for everyone to recognize as the correction more than likely being over.
Quick note: A lot of you that are on non-paid versions of TV can't see custom timeframes (i.e. 6 hours, 12 hours, etc). So I will tell you guys right now that the higher hourly timeframes up to the 10 hour timeframes are pretty much all green. The 12 hour timeframe is likely about to turn green at any time, which means that the daily turning green is going to be fairly close by. And when I say fairly close, I mean "fairly close" on a daily timeframe , which could still be 1+ months. This does mean though that price will have to stay above the daily median for it to turn green!
Please understand, we WILL go lower ultimately than where we are. The current situation shows us hugging that red median line on the Gaussian, and channel is STILL RED. We WILL retest at least the nearest support trend line again, which the closest one is Scenario A, although I'm starting to favor Scenario B (yellow trend line ) the more I look at which way the Gaussian channel is headed. I'm currently 50/50 on both Scenario A and B. The reason I can't discount scenario A support trend line is because of the heavy volume of support at 8300... Which tells me there is DEFINITELY heavy accumulation at that price range.
Once again, Gaussian daily is still not green. We will still dip further down from here (regardless of a bounce to test top of triangle in the next week or so), especially for the fact that we are currently hugging and seemingly failing below the daily median.
I am currently SHORT still for now. I plan to take profit on my short once we hit the aqua dashed bottom trend line in scenario A (roughly around 8300).
From there, I plan to go into a long position with half of my portfolio at a 5x margin, I will add the other half to that long position once daily Gaussian turns green OR we dip down to the yellow support trend line .
Stop loss if Gaussian daily turns green will be Gaussian median.
Stop loss if we hit yellow bottom trend line will be very tight, pretty much $50-$100 from below that trend line ... Reopen a long from bottom of the violet trend line if we fail below the yellow line.
Everyone wants "indicators that don't lag" - and what they're really trying to say is they want indicators that tells them what to do. That's not exactly how the trading game works lades and gents . There are no magical unicorn indicators that tell you perfect timing and price. There just isn't...
Second, the reason I like referring to the GC is exactly because it can be a very lagging indicator. So much so that it can give you a much clearer picture of the ACTUAL trend, and not just succumb to the spazziness of Bitcoin's price as it gives you a wider perspective than just what the good people at Tether that manipulate the living mess out of this digital currency want you to see. (Making traders look at their right hand, while doing something completely different with the other hand... Which is exactly what this 40% pump was btw).
You will notice on the main chart that the parabolic run after we corrected from 3k mostly began almost immediately AFTER the Gaussian daily turned green. Which is why I think that ALL of you should have it as an indicator (on the daily) to know when this correction is officially over.
Now........ There ARE CAVEATS TO THIS fully being the case, because as you can see, during our trip down from 20k, the Gaussian daily HAS turned green on its way down to 3k at least TWICE without the correction actually ending.
IMPORTANT RULE: IF the price goes under the median line of Gaussian Channel daily when the channel is green , NO BUENO MUCHACHO. Which makes that median line a perfect stop loss price region if you decided to go into a long wanting to catch the parabolic run. It also gives you the go ahead to immediately switch to a short position.
So let's get to the nitty gritty here folks. As you can see in the main chart, Gaussian Channel daily is STILL RED. This is why I keep telling people thinking we're going to 20k in the next two days to bet me their paychecks because *ITS*NOT*HAPPENING*PERIOD*. Not today, not tomorrow, not a week from now, not a month from now or even two months from now. We have a date with another (hopefully short lived) bear run.
The other thing I want you guys to notice if you decided to install the Gaussian Channel indicator is that both the monthly and weekly are still GREEN. So therefore, I suspect that whenever the daily decides to turn green, that should be a good signal for everyone to recognize as the correction more than likely being over.
Quick note: A lot of you that are on non-paid versions of TV can't see custom timeframes (i.e. 6 hours, 12 hours, etc). So I will tell you guys right now that the higher hourly timeframes up to the 10 hour timeframes are pretty much all green. The 12 hour timeframe is likely about to turn green at any time, which means that the daily turning green is going to be fairly close by. And when I say fairly close, I mean "fairly close" on a daily timeframe , which could still be 1+ months. This does mean though that price will have to stay above the daily median for it to turn green!
Please understand, we WILL go lower ultimately than where we are. The current situation shows us hugging that red median line on the Gaussian, and channel is STILL RED. We WILL retest at least the nearest support trend line again, which the closest one is Scenario A, although I'm starting to favor Scenario B (yellow trend line ) the more I look at which way the Gaussian channel is headed. I'm currently 50/50 on both Scenario A and B. The reason I can't discount scenario A support trend line is because of the heavy volume of support at 8300... Which tells me there is DEFINITELY heavy accumulation at that price range.
Once again, Gaussian daily is still not green. We will still dip further down from here (regardless of a bounce to test top of triangle in the next week or so), especially for the fact that we are currently hugging and seemingly failing below the daily median.
I am currently SHORT still for now. I plan to take profit on my short once we hit the aqua dashed bottom trend line in scenario A (roughly around 8300).
From there, I plan to go into a long position with half of my portfolio at a 5x margin, I will add the other half to that long position once daily Gaussian turns green OR we dip down to the yellow support trend line .
Stop loss if Gaussian daily turns green will be Gaussian median.
Stop loss if we hit yellow bottom trend line will be very tight, pretty much $50-$100 from below that trend line ... Reopen a long from bottom of the violet trend line if we fail below the yellow line.
12hr Gaussian Channel HAS turned GREEN today.