BITSTAMP:BTCUSD Bitcoin / Dollar
Much of the reasoning behind my future price action speculation can be found in the chart itself, yet I will include some further details below. I first drew the Fibonacci levels in order to find the levels given the range of price we are already in. Notice how many times the price crossing that level correlated with the price going upwards afterwards. Once I had the Fibonacci levels in place, I set up the , a tool I use when determining future levels after a sudden drop in price. Notice how the price action respects the lines, especially the 1:3, 1:1, and 2:1 lines. The next thing I placed in my chart was an , due to it's tremendous capability in forecasting the amount of resistance and support at a given time, 26 periods ahead. The thickness of the cloud represents this very well, and in the chart, we have found great support in order to even enter the cloud; yet a true run would not be supported by the until both the price action and the Chikou span are both above the cloud. The , and retracement both follow their principles in the chart, and I used a known line to demonstrate how the waves may react at that particular level. And finally after this major run to roughly $380 concludes, we'll most likely retrace, either for another leg up, or back down for a potential .