Guys here we have the 15 minute chart on the left and 5 minute chart on the right side and I have placed the 20 50 and 200 averages. These averages are KEY. You must always put these into your charts as any type of charting without these really is more or less guessing and I don't even bother to look at anyone's posted charts unless they are using averages in their analysis.
Anyway... the point is that the 200 must be turned around here in order to ensure that the trend is moving higher and we can put in some simple trend lines which I have done here in blue to indicate the 50 and in black to indicate the base and then we can see that the failure to regain this 200 average (red circles) caused the the breakdown and so now we will try again to reestablish a move to this support area. You can start by watching the one minute chart then the 5 then 15 and one hour etc. right back up to the 4 hour.
In order to achieve this we must have some bullish momentum and in order to get the bullish momentum the 20 and 50 must be sold down below the 200 so that buyers can come in and buy the 2 averages up through the 200 which will signal to all the technical traders to jump in. Anyway some basic stuff to be watching.... the 200 is like a jumbo jet and will not turn around easily... it takes time... so be patient.
I have chosen BTCUSD to illustrate, but this theory applies to all tradeable charted assets.
Anyway... the point is that the 200 must be turned around here in order to ensure that the trend is moving higher and we can put in some simple trend lines which I have done here in blue to indicate the 50 and in black to indicate the base and then we can see that the failure to regain this 200 average (red circles) caused the the breakdown and so now we will try again to reestablish a move to this support area. You can start by watching the one minute chart then the 5 then 15 and one hour etc. right back up to the 4 hour.
In order to achieve this we must have some bullish momentum and in order to get the bullish momentum the 20 and 50 must be sold down below the 200 so that buyers can come in and buy the 2 averages up through the 200 which will signal to all the technical traders to jump in. Anyway some basic stuff to be watching.... the 200 is like a jumbo jet and will not turn around easily... it takes time... so be patient.
I have chosen BTCUSD to illustrate, but this theory applies to all tradeable charted assets.