Hello everybody, here with another very insightful BTC update. Please keep supporting my work by LIKING and COMMENTING below so we can all improve each other in this space. Your feedback is so valuable in making sure this community always stays profitable. Thanks.
Last we spoke bitcoin had been trading at roughly the same price as we are today. On the outside we could say that she has been CONSOLIDATING at this range but we'll try dissecting to learn what's really going on beneath her skin.
To keep things short and clean we'll only use the Money Flow Index (MFI) indicator. For those new to it, this one considers both price action and volume to determine oversold and overbought conditions contrary to the Relative Strength Index (RSI) indicator which depends solely on price action. The creators of the MFI indicator themselves advice on using 90 and 10 as overbought and oversold respectively but we're gonna take it a step further and use 100 as overbought and 0 as oversold!
Pulling the 4-hour bitcoin chart, we're gonna use MFI 5 to determine oversold conditions (entry to Longs and exits to Shorts) and MFI 7 to determine overbought conditions (exits to Longs and entries to Shorts). This setup works in either direction but it's one I've admittedly been using for Long positions mainly.
Here it goes. When the MFI 5 touches 0, we wait until it just starts going up and the close of that candle is our Long entry. Conversely, when the MFI 7 shoots beyond 90, touches 100 and just starts moving down then we've got ourselves our lovely Long exit. This strategy works perfectly with trailing stop losses and that's not even the best part. You SHOULDN'T get an exit signal followed by an entry signal at a HIGHER price and also wouldn't find an exit signal following an entry one at a LOWER price!
But where are we now? We just moved up from 0 as indicated by MFI 5 that means we got another Long entry signal at the close of the current candle just below $9800. This tells us that although bitcoin has been currently slowly moving up (not consolidating) we're still not late Longing here for a short term trade. This is not financial advice to trade with of course but that's one way to always stay on the CORRECT side get money flowing trading BTC. I've traced the strategy as far back as January if you scroll through the chart to see how I've used it to catch awesome trades.
You can wait to see how this strategy plays out and check if it still holds. Also as it's now public, it's interesting to watch how the whales try to countertrade it ;)
Please this idea by pushing the LIKE button so that I might share more useful setups like this in the future. Regards.
Last we spoke bitcoin had been trading at roughly the same price as we are today. On the outside we could say that she has been CONSOLIDATING at this range but we'll try dissecting to learn what's really going on beneath her skin.
To keep things short and clean we'll only use the Money Flow Index (MFI) indicator. For those new to it, this one considers both price action and volume to determine oversold and overbought conditions contrary to the Relative Strength Index (RSI) indicator which depends solely on price action. The creators of the MFI indicator themselves advice on using 90 and 10 as overbought and oversold respectively but we're gonna take it a step further and use 100 as overbought and 0 as oversold!
Pulling the 4-hour bitcoin chart, we're gonna use MFI 5 to determine oversold conditions (entry to Longs and exits to Shorts) and MFI 7 to determine overbought conditions (exits to Longs and entries to Shorts). This setup works in either direction but it's one I've admittedly been using for Long positions mainly.
Here it goes. When the MFI 5 touches 0, we wait until it just starts going up and the close of that candle is our Long entry. Conversely, when the MFI 7 shoots beyond 90, touches 100 and just starts moving down then we've got ourselves our lovely Long exit. This strategy works perfectly with trailing stop losses and that's not even the best part. You SHOULDN'T get an exit signal followed by an entry signal at a HIGHER price and also wouldn't find an exit signal following an entry one at a LOWER price!
But where are we now? We just moved up from 0 as indicated by MFI 5 that means we got another Long entry signal at the close of the current candle just below $9800. This tells us that although bitcoin has been currently slowly moving up (not consolidating) we're still not late Longing here for a short term trade. This is not financial advice to trade with of course but that's one way to always stay on the CORRECT side get money flowing trading BTC. I've traced the strategy as far back as January if you scroll through the chart to see how I've used it to catch awesome trades.
You can wait to see how this strategy plays out and check if it still holds. Also as it's now public, it's interesting to watch how the whales try to countertrade it ;)
Please this idea by pushing the LIKE button so that I might share more useful setups like this in the future. Regards.
Comment:
If we fail to fix above $10300 in the next 10 days, this time we WILL go below $9200
Comment:
UH OOH!! WELCOME TO CRYPTO :D:D