Constance Brown talks about these all the time in her books...I don't see them very often in Bitcoin (I gather they are more common in indices and bonds) so when I see a 'Gap' in the Bitcoin chart and especially, at such a critical point for Bitcoin, I think it must be significant as they apparently signify a strong market sentiment. It carries with it failures at the 50 MFI line, formation of a downward channel and cross down of MACD From what I have read, Gaps carry a high probability of price range reaching the same distance above as well as below the price they occur, so I am treating this as a signal that 600 will break and 580 is in range. MACD as I write appears to want to turn up and I see the 3 green bars have coming up off of the bottom around 610...their decreasing size and a shooting star however, suggest to me that they are a response to the dump and will fail at the upper blue line. Let's see if I'm wrong...again ;-)
Comments
frisby
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This is probably a bug in TV charting than a real gap. Take a look at the other charts.
johnrfraser
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Hi thanks for that...you're right, it's gone! In fact the set of bars has completely changed since! wtf?!
That changes things as we seem to have found support at the bottom of the big red bar that's now there, rather than a no-cross resistance line at the top of what used to be there :-/
How often are the charts changing after the point????
johnrfraser
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PS sorry, I have 2 machines with the same chart on...one with Candles and one with Heikin Ahsi (didn't realise they didn't update on chart upload).
So the chart hasn't been changed :-/
So I wait to see if the gap line plays out with any significance.
Thanks a lot
johnrfraser
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This seems to fit pretty nicely now though don't you think?