Hidden Volume indicator no one talks about. Bitcoin!!
Hello traders,
Today, i will tell you some of my secret strategies for trading Bitcoin. When I trade Bitcoin, I use this indicator called Colored Volume Bars by lazybear.
The the colors are determined:
- If today’s closing price and volume are greater than 'n' days ago, color today’s volume bar green.
- If today’s closing price is greater than 'n' days ago but volume is not, color today’s volume bar blue.
- Similarly, if today’s closing price and volume is less than 'n' days ago, color today’s volume bar orange.
- If today’s closing price is less than 'n' days ago but volume is not, color today’s volume bar red.
The strategy is to buy green and sell when it turns the color. I only use this for entry and exit confirmation, but you can see from the chart that every time I follow this strategy, I can get sizable profit :) The default lookback period is set to be 10, but I change this number to 5 for daily. (6 for 4 hourly)
Today, we just see blue volume bar turned into orange/red. If you see from chart, majority of the time blue volume bar turn into orange/red bar, we saw some significant down trend (blue arrows), and I am just wondering if this is the first warning for the upcoming dump. It seems like Stoch RSI is starting to curl up, but if we have dump today, this can easily curl downward again. Today's candle will be very important for the Bitcoin direction in next 4-5 days.
Today, i will tell you some of my secret strategies for trading Bitcoin. When I trade Bitcoin, I use this indicator called Colored Volume Bars by lazybear.
The the colors are determined:
- If today’s closing price and volume are greater than 'n' days ago, color today’s volume bar green.
- If today’s closing price is greater than 'n' days ago but volume is not, color today’s volume bar blue.
- Similarly, if today’s closing price and volume is less than 'n' days ago, color today’s volume bar orange.
- If today’s closing price is less than 'n' days ago but volume is not, color today’s volume bar red.
The strategy is to buy green and sell when it turns the color. I only use this for entry and exit confirmation, but you can see from the chart that every time I follow this strategy, I can get sizable profit :) The default lookback period is set to be 10, but I change this number to 5 for daily. (6 for 4 hourly)
Today, we just see blue volume bar turned into orange/red. If you see from chart, majority of the time blue volume bar turn into orange/red bar, we saw some significant down trend (blue arrows), and I am just wondering if this is the first warning for the upcoming dump. It seems like Stoch RSI is starting to curl up, but if we have dump today, this can easily curl downward again. Today's candle will be very important for the Bitcoin direction in next 4-5 days.
Comment:
Let's do reality check here. Looking at the weekly chart, we see that Bitcoin is really running out of bullish momentum. We can see that Stoch RSI is about to cross. If we have red candle like I indicated in the chart, that will be a huge reversal signal and we can expect large sell-off.
