ChartArt

Bitcoin's Future Could Be Decided in March 2015

BITSTAMP:BTCUSD   Bitcoin / Dollar
990 11 11
Using only two Gann squares it's possible to detect some interesting area of Bitcoin price decision in Spring 2015.

Gann square             1:
2012: $9.50 low
connected with
2013: $259.34 high


Gann square             2:
2013: $1163 high
connected with
2014: $339.79 low
ChartArt
2 years ago
I highlighted the wrong line. This purple line of Gann square 1 crossing the green line of Gann square 2 in 2015 is the interesting area:

snapshot
Reply
Yolos
2 years ago
Hey ChartArt, I'm interested in learning more about Gann's indicators and TA theories. Do you know of any resources that would help me? Maybe a book or some online references? I tried to research the Gann Fan indicator yesterday and found very little information about it.

As it relates to your idea, I don't know how the Gann Squares are relevant to bitcoins current trend (which is why I want more information about them) but I am skeptical that they alone could make a reliable prediction.
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ChartArt Yolos
2 years ago
Honestly, so far I have only read the Wikipedia article about the inventor William Delbert Gann after I noticed that the Gann fans really show some interesting price areas. My approach is basically: spray and pray (and see what sticks). As it later turned out, obliviously the Gann fans have some use, as impressively demonstrated last time here:
Bullish Bitcoin Bottom or Bearish Bull Trap? Watch The Pink Line
. All I do is that I search in the chart for fractals (strong pivot points) in the price movement and connect them with a Gann fan. Later I discovered that it's possible to type in the settings of a Gann fan the exact prices which you want to connect with each other to make the Gann fans even more effective than just approximately aligning them by hand.

If it turns out in 2015 that this price area in March was really of high interest for Bitcoin I'm definitely going to read a book about his theories. So far this is just another experiment, like the many Fibonacci circles I started to use in my first charts (which are also great). Honestly my account was never intended to be serious, but about ongoing innovation in chart analysis. Reading books about this stuff is still ahead of me after I have chosen which topics of TA are worth my time to explore them deeper. I just started chart analysis with learning by doing in Q1 2014 and TradingView offers an awesome toolbox to play around. So far I hadn't tested the Gann square even once. I expect it to work better in long term charts, that is why I used it in a weekly chart now that Bitcoin is in another make or break price area around $275-$325.

http://en.wikipedia.org/wiki/William_Delbert_Gann
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Yolos ChartArt
2 years ago
Thanks for the help. It seems Gann himself left little explanation of the technical indicators and tools he developed. From what I understand so far, the Gann Fan is supposed to show the rate at which a trend is developing, which in turn may lead to "support" or "resistance" levels once the trend slows down. It is hard for me to see how the rate of a trend ties into the psychological construct of support and resistance, but I only just started researching it yesterday, after seeing you and some others using them. I also am going to research those other Fibonacci structures, like the fib circle, because they seem very interesting.
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ChartArt Yolos
2 years ago
And if you hadn't found it so far, here is an explanation of Gann angles by James Hyerczyk for Investopedia. When I find a good video explanation I'm going to share it with you.

http://www.investopedia.com/articles/trading/08/gann-indicator.asp
Reply
DanV MOD ChartArt
2 years ago
Well I have looked at both charts. Specifically the one with Gann fan lines from low. It seem very convincing that it appears to work. If so then now we are blow one of the significant one and that could now become resistance to the upside but it is slanting up. The other one below that is too far away. So it would take long time for either of these now to be truly any guide and the space between then is so far wise and getting wider, there in is the limit of this approach in my view. Unless it collapse and drop the one lower in which one to watch. So I am not really gone on this. However, there are several other Gann's approach which could be very useful when applied in conjunction with other traditional TA. But that is not to say it does not work ans would not wish to discourage you from developing further understanding and application skill. It is juts my view and opinion. Thank you for asking and hope it will help.
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ChartArt DanV
2 years ago
I agree. I also noticed that the downside of this approach with Gann fans is that it sometimes lacks detail when the next Gann fan is very far away, as you wrote as comment to my long-term chart (https://www.tradingview.com/v/mbeChoQL): "So it would take long time for either of these now to be truly any guide and the space between then is so far wise and getting wider, there in is the limit of this approach in my view."

Maybe we can get a better understanding in my next iteration of that chart when I apply 100% precise price and date from the actual MtGox low and not only some average from the "BTC pre-historic" price layer. Speaking of this, I already applied the actual MtGox pivot points on a newer chart where I also drew Gann fans, see:
Bitcoin Winter 2014/2015 Outlook: Important price areas to watch



On this previously mentioned more precise chart Bitcoin the price is also below a very long-term Gann fan (pink line), but much closer to it with a chance to get back above it:

Bitcoin Winter 2014/2015 Outlook: Important price areas to watch
Reply
DanV MOD ChartArt
2 years ago
Yes I agree. we need that low established in order for the price to attempt to reclaim that pink line but will continue to get herder as it too is rising.
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rivet.popper
2 years ago
Any update on this using 4 months later using Gann Squares? Uptrend seems to be confirmed.
Reply
DanV MOD rivet.popper
2 years ago
Thanks for your question. ChartArt might be able to reply. In the meantime just an observation that various trends regardless of direction are relative and at different degree. So what might appear uptrend now might just be a retracement of the previous decline. I fell this one reason why many get into needless debate as their perspective and view points are on different degree.
Reply
zmm20
2 years ago
Wow, direct hit
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