Basic Trend Lines For BTCUSD Weekly Chart

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
My first stab at posting a chart over looking the big picture of BTCUSD             .
Support at 160 held strongly
Went to $152 on Stamp, but I agree bthere is a lot of support in this area. I covered all my shorts at $185 and bought at $180 literally in my sleep. That was a nice surprise to wake up to. :)
+1 Reply
GWaves MoonTrader
Very nice. I covered my short at 208 and increased my account size at 171 on coinbase. It's interesting to see where price action will go from here. Was looking for a big rally but now am not too sure.
When you draw lines in such a large time-frame it's necessary to be very precise and watch the details. Here is my version drawing the lines only using the candle bodies and not using sometimes the candle shadows and sometimes the candle bodies.

You can see that Bitcoin is in a downtrend since May 2014 (blue line) and that the very large uptrend since 2012 has not been broken, yet. That could only happen between January-March 2015.

+1 Reply
GWaves ChartArt
Thank you for the feedback! When drawing lines the way I did, one starting at the body of the candle connecting to the shadow of another candle, does that invalidate the trend line? Could I draw such trend lines in a smaller timeframe say the H4?
ChartArt GWaves
"When drawing lines the way I did, one starting at the body of the candle connecting to the shadow of another candle, does that invalidate the trend line?" Common knowledge is to either connect all trend lines with the candle shadows or to connect all trend lines with the candle bodies, but not to mix both approaches.

I also never draw trend lines, because as you can see with this single example two people easily came to two different conclusions and you don't know what the rest of the market thinks. Doing so in a 4 hour chart is even more risky, if you ask me.

The only trend lines I 100% obey to are horizontal support and resistance lines using the lowest low and highest high price, and if you want to be 120% safe to see the same uptrend or downtrend as everybody, then use candle bodies and not shadows to draw these horizontal lines. I then mainly use bars not candles (equal to OHLC on BitcoinWisdom).
GWaves ChartArt
I will keep this in mind as I continue to develop my skills. I am beginner in the technical analyses world so feedback is always welcome. Thank you sir.
ChartArt GWaves
I'm also a beginner and I'm still learning and can only tell you what I learned myself so far the last months while trading (and not reading books). Here is what I mean with the horizontal lines. If you pick the right lows and highs a breach of those lines represent very hich chances that the trend will continue in the direction:

ChartArt ChartArt
I shared this chart and said the sell line is risky (and I have to agree). The following low line would have less risk, because it's a stronger pivot price point. These are maybe not trend lines, but important price areas to watch:

ChartArt ChartArt
And then other people see this using other lines.... that's why I never draw lines and instead rely on indicators.
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