But, what on earth is "Crazy Bought"?
Before, it is hard to explain and let people understand "Crazy Bought".
After two days' pump and dump, it should be easier now.
Crazy Bought is a new term defined in "9 Seasons Rainbow Multiple Time Frames Pattern" Indicator, which is one of the 9 Seasons: Bull (Green), Bull Pullback (Light Green), Resistance / Overbought (Yellow), Crazy Bought (Lime), Neutral (White), Bear (Red) , Bear Bounce (Light Red), Support / Oversold (Blue), Crazy Sold (Fuchsia).
Definition: Crazy Bought (Lime): Price is going up in a high , could be a valid breakout, or a Bull Trap.
Definition: Resistance / Overbought (Yellow): a , may become a Top, or be broken through.
Evolution of Crazy Bought(Lime):
- When the resistance is broken through, Resistance / Overbought (Yellow) becomes Crazy Bought (Lime);
- When the price stays above the range area, it is a successful breakout, Lime extends;
- When the price rises to a new level and stays there, Crazy Bought (Lime) becomes Bull Pullback (Light Green);
- When the price falls back into the range area, it is a fading breakout, Crazy Bought (Lime) turns back to Overbought (Yellow).
The value of Crazy Bought Signal for trading:
- When Lime appears in shortest-term time frame, Long at once.
- When Lime appears in medium-term or long-term time frame, wait for Long Signal in short-term time frame, whose ribbon becomes green, or using traditional , , , etc.
- When Lime becomes Yellow, close Long Position, or do Short trade.
- Lime in single ribbon is weak signal, Lime with specific Pattern has high probability for a profitable trade. (Please refer to other Tutorials about Pattern)
- Stop Setting: set Stop under the upper border of the range, leave some space from it.
Market is complex, High Risk comes with High Reward. (For 90% of time)
Resistance / Overbought (Yellow) normally means Bull is exhausting on that time frame, so it is reasonable to Short; however, some hidden whales can manipulate/affect the price suddenly, esp in small time frame. When a short position is open with Yellow signal, always be ready to close it when Yellow becomes Lime.
Crazy Bought (Lime) normally means a breakout, so it is reasonable to Long; however, a breakout can be fading, so always be ready to close it when Lime reverses to Yellow.
I should have listened to the indicator, instead of my feeling.
My latest idea "BITCOIN IS WALKING BESIDE A CLIFF", should be renamed to "BITCOIN IS WALKING under A CLIFF". However, according to my theory, it is reasonable to open short position, because the indicator gave Resistance / Overbought (Yellow) signals in 85minute & 170minute time frames.
The problem is that, me, as the author of the indicator, didn't listen to the signals given by the indicator "9 Seasons Rainbow Multiple Time Frames Pattern".
One hour before the 1K pump, Yellow became Lime on both 85minute & 170minute time frames. While I chose to ignore it, because my feeling controlled me:
- That day, I heart at least three experienced trader mentioned they were for Bear, which became a part of the source of my decision system;
- It was near mid-night, I was tired and want to sleep, so I was lazy to reverse my point of view;
- I believed altcoins move before Bitcoin , which is correct often, but not always.
In addition, Crazy thing is good example of "High Risk comes with High Reward".
For details of the other 8 Seasons, please refer to the indicator page:
If you find this idea reasonable, please like it, I appreciate your thumbs up. People who like can ask for Three-Day free trial of "9 Seasons Rainbow Multiple Time Frames Pattern STANDARD Indicator" within 10 days since idea is published.
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This is only a personal opinion and does NOT serve as investing NOR trading advice.
Please make their own decisions, carefully assess risks and be responsible for your own investing and trading activities.
Tuto List: https://9seasonsrainbowindicator.blogspot.com/search/label/tutorial