MrPalmTree
Education

DID YOU DRAW WRONG TREND LINES ALL THE TIME ?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Hi traders, jump right in the issue, Bitcoin . I see many traders said that we broke out the downtrend line and that is the bullish signal. And the line they drew is the red line of my chart, isn't it ? You also drew a trend line like that by connecting 2 high price points right ?

Hmmm... well, actually this method of drawing trend line is classic and sometimes helpful in stock markets. But this is Bitcoin , a high volatility market, it's easy to make some change in the market that can lead to false tops, false bottom and then false trend lines . As a... goldfish of this market, i know how easy it is to trick you by making small price change lol. That's why never 100% trust the top/bottom point of market.

So what am i trying to say here ? - In my personal view, we should draw a line that cross a lot of past tops and bottoms. As you can see the blue lines i drew in the chart, it's an example of useful line and i touch tops/bottoms price about 10 times. It's not too beautiful but it will be more effective in the market.

Remember, always use LOG SCALE in markets that made big change of price in recent years.

Above are some of my suggestion after wandering around this site. Enjoy!

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For any ideas or questions, tell me what you think in the comment section. I don't talk and explain much about my idea, i'm a type of man that THINK much, not talk much, so i'm really sorry for not explaining my idea clearly! Everything i brought you is the result of my hours of work.

If you want to learn something, these are some best source trusted by me:
- Technical Analysis: stockcharts.com, investopedia.com
- Fundamental Analysis: medium.com, bitcointalk
- Books: Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications, The Disciplined Trader: Developing Winning Attitudes

My predictions are accurate and helpful ? Follow me, i can help you define the market moves. Of course, no one can totally predict the future. But we trade smart, we trade differently. Always use the f*cking stop loss.

AS ALWAYS, SORRY FOR MY BAD ENGLISH AND SAFE TRADING EVERYONE!

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Who am i ? I'm a tiny cryptocurrency whale (or a goldfish), a swing trader and an emotionless chart analyst that you can trust lol.

- MrPalmTree

Comments

I agree, the more touches the better the trend-line. I've also used the open or close of the candle body rather than the pin highs or pin lows and it seems to help get a better picture of reality.
+1 Reply
Trendlines on log chart is working very well so far. Sometimes they work well on linear as well.

+1 Reply
@hkh222, agree. I cross check between log and linear regularly. I remember when everyone was screaming moon because it had broken the down trend channel at 11k... in linear. I am watching same trend line as you. It hasn't got to it yet. Probably around 7300 will be the touch and rejection.
+2 Reply
cI8DH Cryptopile
@Cryptopile, market plays tricks with log and linear. The double top around 11.7 k was made by linear first and then log one. Very interesting.
+1 Reply
cI8DH Cryptopile
@Cryptopile, See how both linear and log trendlines are working very well
+2 Reply
@hkh222, Nice catch. Didn't really register that myself, despite being obvious. Possibly 2 different trading groups with different signals, and/or market manipulators using this to their advantage.
+1 Reply
cI8DH Cryptopile
@Cryptopile, exactly. Just look at the 2014 BTC chart, it's full of these tricks. Spoofy was the king of the market and he did whatever he wished. Kept everyone in suspension for months. Just below the log trenline and above the linear one.
+1 Reply
Great concept. Thanks
Reply
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