I created an indicator that lets you divide prices into equal segments (rainbow script). This allows me to apply quarters theory (made popular in forex trading) to smaller timeframes on BTC. Quarters theory is the idea that price action hovers around the quarters between whole numbers... 10, 12.5, 15, 17.5, 20....
I've divided 30,000 to 50,000 into quarters and looked at the smaller timeframes on the BTC chart. As quarters theory would predict, the price seems to "jump" up and down between "quarter" price levels consistently. It doesn't trade between levels, only at or around the quarter levels.
This wouldn't be particularly useful for swing trading, as this falls apart on larger timeframes, but it is useful in a very volatile market on smaller timescales. For example, if you were leveraging your position on a short.
If you think Bitcoin might be the future.... Well, I'm not 100% sure about that. Imagine the following scenario.
Using Bitcoin to buy and sell apples.
Customer: How much for this apple?
Vendor: .000064 bitcoins, sorry, uhmm... wait.. .000057 BTC, No, just a moment... That'll be .000073 Bitcoin
Customer: Here you go....
Vendor: Now, let me put you on a brief hold, while the BTC transfers to my wallet..... The estimated transfer time is 2 hours and 16 minutes... with 12 confirmations.....
Customer: I remember when we use to use cash, that is so yesterday's news, no?
Vendor: Yeah, cash, what a joke.... I'm glad we're not doing that anymore.
I've divided 30,000 to 50,000 into quarters and looked at the smaller timeframes on the BTC chart. As quarters theory would predict, the price seems to "jump" up and down between "quarter" price levels consistently. It doesn't trade between levels, only at or around the quarter levels.
This wouldn't be particularly useful for swing trading, as this falls apart on larger timeframes, but it is useful in a very volatile market on smaller timescales. For example, if you were leveraging your position on a short.
If you think Bitcoin might be the future.... Well, I'm not 100% sure about that. Imagine the following scenario.
Using Bitcoin to buy and sell apples.
Customer: How much for this apple?
Vendor: .000064 bitcoins, sorry, uhmm... wait.. .000057 BTC, No, just a moment... That'll be .000073 Bitcoin
Customer: Here you go....
Vendor: Now, let me put you on a brief hold, while the BTC transfers to my wallet..... The estimated transfer time is 2 hours and 16 minutes... with 12 confirmations.....
Customer: I remember when we use to use cash, that is so yesterday's news, no?
Vendor: Yeah, cash, what a joke.... I'm glad we're not doing that anymore.