Evening everyone. I'm long the HODL bag (what else is it for?) and out of trades. Using the 5 RSI method from my first post netted 30% profit. Looking forward to another one after this shake out.
Top to bottom on the chart:
-Daily close in the .382 BB channel. Good for trend re-entry unless the RSI is under the mid-line. See below.
-$9.5k marked @ 50 daily wma – price has bounced here several times since April. This serves as my buy/sell line for trade direction.
-$7.7k marked @21 weekly sma – this was a reliable support level in eight corrections during the 2016-17 bull market. I’m looking to add to the HODL bag here.
-Solid close on the bottom of the 5 RSI mid-line – definite momentum shift.
Notice the downward trend in the RSI the last couple cycles. Noteworthy that this one was much steeper and faster than before. Don’t want to read too much into it but I’ll be less surprised if this correction goes to the 21 weekly instead of stopping at the 50 daily.
A quick look at a weekly chart shows the RSI has headed upward since December 10th. Nearly seven months of positive momentum so we’re due for a break if this is the early stage of a healthy bull run.
Remember that markets move to equilibrium. All the lines we put on here are just for us to rationalize in hindsight. Price = honey badger. Doesn't give a f*ck.
Please share ideas and critiques in the comments.
Top to bottom on the chart:
-Daily close in the .382 BB channel. Good for trend re-entry unless the RSI is under the mid-line. See below.
-$9.5k marked @ 50 daily wma – price has bounced here several times since April. This serves as my buy/sell line for trade direction.
-$7.7k marked @21 weekly sma – this was a reliable support level in eight corrections during the 2016-17 bull market. I’m looking to add to the HODL bag here.
-Solid close on the bottom of the 5 RSI mid-line – definite momentum shift.
Notice the downward trend in the RSI the last couple cycles. Noteworthy that this one was much steeper and faster than before. Don’t want to read too much into it but I’ll be less surprised if this correction goes to the 21 weekly instead of stopping at the 50 daily.
A quick look at a weekly chart shows the RSI has headed upward since December 10th. Nearly seven months of positive momentum so we’re due for a break if this is the early stage of a healthy bull run.
Remember that markets move to equilibrium. All the lines we put on here are just for us to rationalize in hindsight. Price = honey badger. Doesn't give a f*ck.
Please share ideas and critiques in the comments.