GWaves

Basic Trend Lines For BTCUSD Weekly Chart

BITSTAMP:BTCUSD   Bitcoin / Dollar
My first stab at posting a chart over looking the big picture of BTCUSD             .
Support at 160 held strongly
Reply
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 PRO 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.
Reply
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.

snapshot
+1 Reply
GWaves PRO 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?
Reply
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).
Reply
GWaves PRO 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.
Reply
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:

snapshot
Reply
ChartArt ChartArt
I shared this chart and https://www.tradingview.com/u/Daedalus/ 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:


snapshot
Reply
ChartArt ChartArt
And then other people see this using other lines....
snapshot
that's why I never draw lines and instead rely on indicators.
Reply
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
中国
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out