fomo volume follows price after critical level breakouts
DCFreak
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@elshanti, Read the conversation I had with Iamcryptowolf below. Zooming in into daily volume shows you more details.
elshanti
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@DCFreak, weekly Macd cross first time since october 2016 ..
a comparison with 2011 bottom..
IamCryptoWolf
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same for the 27 th march, in full bull market. rising price and falling volume and we went up. this is not enough to justify down movement imo
DCFreak
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@IamCryptoWolf, This is the weekly candle, 27th of March, or the entire month of March, the volume was very low and mostly was sideways.
DCFreak
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@DCFreak, my bad, was looking at March 27th 2016 lol. March the candles were red, and it was going down, meaning the selling volume was decreasing, then turned green as the buying volume started increasing, nothing to compare here. In fact, decreasing sell volume (lower red volume candles) and then green candle is a bullish sign
IamCryptoWolf
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@DCFreak, yes I know it’s the weekly. Look at what happened starting at the end of march 2017. Rising price and falling volume is not enough. Look at the weekly RSI (we bounced from 40 never entered bear territory). Weekly MACD cross. Weekly stoch RSI cross.
DCFreak
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@IamCryptoWolf, Weekly RSI its at a support region that held well for 3 times but also broke previously and was a resistance from Sep 14 to June 15.
Weekly MACD cross can be easily rejected as in the 23rd of July
And as in the daily MACD on the 7th of Jan and the 29th of Jan (Cross up, then a huge drop in both cases)
Daily stoch RSI is crossing down.
So these can be used as either bullish or bearish based on the frame and how you look at them.
All comes down to the money flow. On the 22nd of Aug we had the highest red volume candle since the 24th of April.
On the 24th of April when we had the huge sell candle the price dropped from 10k to 5k a few days after.
Whales don't panic sell during the fall off, they are way ahead of how the normal people react. So a huge sell-off, followed with a rise with a declining volume ( showing weakness ) is a pretty good indication that the money flow was out of the market, and the interest in the buying volume is declining.