CMF, Stoch RSI and ADX indicators suggest there is a strong bullish action on the market. After a surge yesterday, CVC is developping a pennant on decreasing volume which is an indication of a possible breakout. Conservative buyers should look for the resistance to be broken on high volume with the sell target at 0.000155-0.000165 BTC.
Thoughts are welcome. Please point out any mistakes in my analysis. Have I overlooked something?
Comment
⋅
To all those still watching this, the pattern hasn't been broken yet. The shape of the flag and the volume do not preclude a possibility of an upwards movement. However, watch out for the previous resistance line (current support) to be broken as it has approached it once already. If broken, I would still watch it but be a lot more skeptical.
RSI seems a bit high for another breakout. Look at how low the RSI was yesterday as the wind up that helped power yesterdays surge up. Now, it looks like there's some consolidating to do to get that RSI down again, no?
HumbleDumbell
⋅
@jeremyalain, It's a good question. Stoch RSI is also high on the 4h chart (low on 2h and 1h)
I did some research. In short, high RSI in an uptrend actually seems to be a good thing - more buyers, more price going up. As long as it hovers over 40+ for now, I would consider RSI bullish - just like stoch RSI.
Also, per se, RSI doesn't help the price to go up. Volume does. RSI is a ratio between high and low closes and it goes higher up as the gap between highs widens upwards. It is more of a confirmation indicator in this scenario with some predictive power for possible corrections, but not trend reversals. Trend reversals usually happen due to other factors, and RSI only confirms them.
Correct me if I am wrong. Maybe somebody can explain it better. I am no expert.
jeremyalain
⋅
@HumbleDumbell, I'm still trying to fully grasp how RSI works. That's a very helpful explanation, thank you!
jeremyalain
⋅
@jeremyalain, Also, I forgot to check the diff time charts...
HumbleDumbell
⋅
@jeremyalain, No problem. I am learning too. You may want to check Wikipendia's article on RSI. They have a good summary of what it can help you with. You may want to look for extra examples of what they are talking about on the charts here or in other educational sources because they don't have a lot of examples there.