I would really look at how we have bounced from the 21 day EMA on weekly historically.
Once below the 11 day, we have always retested the 21 day (weekly tf). Now, if we can get a healthy bounce up from there, I can definitely see a much deeper correction.
Zulu_Kilo
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@zk8619, meant to say that if we CANT get a healthy bounce from the 21, THEN we get a deeper correction.
But we will for sure bounce again from the 21. Happens even in a parabolic run up, or a correction down.
ManongRico
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@zk8619, currently BTC is sitting just right above that 21 ema on weekly tf so yeah a bounce from it makes it look bullish as it indicates strong support area. But when it breaks from it and restest, I would consider it a declining phase with a downtrend most probably 7-6k usd priace area.
You might need to check your indicator settings because the 21 EMA on my weekly is that yellow line in my screenshot... The 11 day MA is the orange line we are right below.
Zulu_Kilo
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@zk8619,
ManongRico
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@zk8619, interesting. I'm not actually using ema's on my trading strat currently tbh but I will check it out