venzen
Short

Single trade opportunity short to support

BITSTAMP:BTCUSD   Bitcoin / Dollar
372 8 7
A minimal chart: price is below its 4hr 200MA (also descending), MACD is descending below zero as well as its signal line.

Fib extension targets at $620, $580 and an overlap near $540 with horizontal S&R at the previous corrective low.

Based on similar bearish indications at the 1day and 3day timeframes, and confirmation in the 1hr chart: Short at Max position size with max leverage.
Trade active: a 1hr MACD signal - crossover below zero has opened the 4hr TF trade
Comment: https://www.tradingview.com/chart/qIzqqYDj/
Comment: Trade Update:

Just to show the 1.618 retracement posted in the previous update comment as well as the current 1hr upside reverse divergence (15h00 UTC) that implies downward trend continuation.

snapshot
Trade closed: target reached: The decline exceeded the $540 target by dropping to resistance-turned-support at $465.

This is the level that capped advance during the earlier part of 2016 (blue arrow in the chart below).

There may be additional downside, but price has reached its 1-day 200MA, a long-term S&R level, so: Profit is profit. Monster short trade closed.
Comment:
snapshot
What about going long? Same mMACD BB setup here:
snapshot
Reply
venzen spinte7
The critical indication of MACD is that we watch for it to cross its signal line from low volatility. The other significant indication is that MACD crosses its zero line.

So, crossing above its signal line while already above the zero line - as you circle in green - is bullish.

However, at the present chart juncture (not showing in the chart you attached) we have MACD crossing below its zero line *and* below its signal line, which is bearish. These are the primary indications of MACD.

The similarity in Bollinger Band alignment between the present instance and the instance you highlight seems merely incidental. If price were now to reverse to the upside and MACD makes a bearish cross-over of its signal line and zero line - *then* we'd expect price to advance until it hit that upper BB - maybe - depending on the stage of trend.
Reply
venzen venzen
correction to the above: "If price were now to reverse to the upside and MACD makes a _bullish_ cross-over... " (not bearish)
Reply
Yep, I know what you meant to say.
We'll see how it goes ;)
Reply
I think that it's still early and we need more squeeze.
We'll eventually reach this part :

"If price were now to reverse to the upside and MACD makes a bearish cross-over of its signal line and zero line - *then* we'd expect price to advance until it hit that upper BB - maybe - depending on the stage of trend."
Reply
Seems an upward correction (wave 2) is unfolding - upside target should be $664 (Bitstamp) at the overlap of the 1hr 200MA, 50% retracement, and a 1.618 Fib extension of wave A from the low.
Reply
Good one, gratz!
Reply
venzen spinte7
thumbs up, @spinte7 !
Reply
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