What separates Great TA from Good TA is finding something nobody else has. Or at least the avg Joe. Seeing something they don't because they rely on others. This is why you MUST do your own homework.
Dash has not performed the way I anticipated. So I did what any trader would do went back over my charts and found an error in my count. There we go fixed. But wait, that still didn't explain the behavior. I felt like it was doing the opposite of bitcoin but I don't trade on feelings I want proof. At first I didn't see the correlation, then it suddenly appeared on my chart. How did I miss this before? Ahhhh there it is. Before I was comparing DASHUSD to BTCUSD and accidentally I hit DASHBTC to BTCUSD. There was the correlation I was looking to find for weeks now suddenly appeared on my chart and I wasn't even looking for it.
Now I want to be painfully clear. I AM ALWAYS LONG BTC FOR THE LONG TERM! I have mentioned in just about if not every article, I have a long term position in BTC that I do not touch. I also want to clarify when I say I am shorting BTC that means I am selling a little off that I must buy back (trading around a core position). My buddy Phil pointed out to me that I may be giving the wrong impression and I should be using the term "reducing position" in lieu of short. Being in the gold/silver trade for many years we use the term "short" if we reduce our position of sellable gold and silver, with the intent to buy back lower. So I apologize if this has led to any confusion by those that briefly read the headlines and think I am margined 3 ways to dixie shorting the market. For those that read and follow closely this has been clearly stated. On to the Analysis!
As I mentioned I had a mistake in my count, that is fixed and shown in the upper left chart. You can see the trend line from the 3rd wave that was support then resistance and was support for the 4th wave. Dash has been consolidating now and is poised for the final 5th wave. It's a very clean count. But shouldn't BTC be in the same count? This was the stumper. Then as I said by accident I fell upon the chart at the bottom. Now this may be confusing at first, but I trade DASH in BTC not USD, but I was comparing them to USD. I really don't care about increasing my USD as I'm long term BTC as it will inevitably outperform the dollar. You can see clearly from the chart that when BTC goes down vs the dollar, my wealth is preserved in DASH so I want to be long. When BTC is strong vs the dollar I want to DASH is weak in BTC so I want to reduce. Very similar to trading the gold silver ratio, or going to gold as a hedge to the market. Anyone that has done this will understand. Those that don't should google it.
Regardless of where you think BTC is going the graph is clear. Look at the two highlighted boxes, see a pattern? Look at the arrows, see a trend? Ed Seykota said "If you can hold the graph 10 feet away and see the direction of the line that's the trend that's how you should be positioned". Sean_Venegan responded "Hold the chart upside down and that's what it looks like from the guy/gal taking the opposing position. hmmmmm. When BTCUSD is in decline, DASHBTC goes up. I want to be longer DASH. When BTCUSD is going up, I want to shave a little off an convert that back to BTC. So why now did I add to my DASH position. The upper right corner shows the 2 Day graph of DASH. The slower HMA crossed up and through the slower, signaling maybe the start of an uptrend. The RSI had bounced an started a slowly increasing. ALL IN RIGHT! Hell no! We are not impulsive. I allocated 3/4 BTC for this trade. I bought 1/4 BTC on the first signal. I want confirmation of the slower moving average or a strong break to the upside to buy the second 1/4BTC. Upon divergent up sloping of the HMA's I'll buy the last. This is a longer term trade, and is another way to in my opinion Hedge vs BTC. The chart also validates are BTC should correct. Look at the August comparison.
Dash has not performed the way I anticipated. So I did what any trader would do went back over my charts and found an error in my count. There we go fixed. But wait, that still didn't explain the behavior. I felt like it was doing the opposite of bitcoin but I don't trade on feelings I want proof. At first I didn't see the correlation, then it suddenly appeared on my chart. How did I miss this before? Ahhhh there it is. Before I was comparing DASHUSD to BTCUSD and accidentally I hit DASHBTC to BTCUSD. There was the correlation I was looking to find for weeks now suddenly appeared on my chart and I wasn't even looking for it.
Now I want to be painfully clear. I AM ALWAYS LONG BTC FOR THE LONG TERM! I have mentioned in just about if not every article, I have a long term position in BTC that I do not touch. I also want to clarify when I say I am shorting BTC that means I am selling a little off that I must buy back (trading around a core position). My buddy Phil pointed out to me that I may be giving the wrong impression and I should be using the term "reducing position" in lieu of short. Being in the gold/silver trade for many years we use the term "short" if we reduce our position of sellable gold and silver, with the intent to buy back lower. So I apologize if this has led to any confusion by those that briefly read the headlines and think I am margined 3 ways to dixie shorting the market. For those that read and follow closely this has been clearly stated. On to the Analysis!
As I mentioned I had a mistake in my count, that is fixed and shown in the upper left chart. You can see the trend line from the 3rd wave that was support then resistance and was support for the 4th wave. Dash has been consolidating now and is poised for the final 5th wave. It's a very clean count. But shouldn't BTC be in the same count? This was the stumper. Then as I said by accident I fell upon the chart at the bottom. Now this may be confusing at first, but I trade DASH in BTC not USD, but I was comparing them to USD. I really don't care about increasing my USD as I'm long term BTC as it will inevitably outperform the dollar. You can see clearly from the chart that when BTC goes down vs the dollar, my wealth is preserved in DASH so I want to be long. When BTC is strong vs the dollar I want to DASH is weak in BTC so I want to reduce. Very similar to trading the gold silver ratio, or going to gold as a hedge to the market. Anyone that has done this will understand. Those that don't should google it.
Regardless of where you think BTC is going the graph is clear. Look at the two highlighted boxes, see a pattern? Look at the arrows, see a trend? Ed Seykota said "If you can hold the graph 10 feet away and see the direction of the line that's the trend that's how you should be positioned". Sean_Venegan responded "Hold the chart upside down and that's what it looks like from the guy/gal taking the opposing position. hmmmmm. When BTCUSD is in decline, DASHBTC goes up. I want to be longer DASH. When BTCUSD is going up, I want to shave a little off an convert that back to BTC. So why now did I add to my DASH position. The upper right corner shows the 2 Day graph of DASH. The slower HMA crossed up and through the slower, signaling maybe the start of an uptrend. The RSI had bounced an started a slowly increasing. ALL IN RIGHT! Hell no! We are not impulsive. I allocated 3/4 BTC for this trade. I bought 1/4 BTC on the first signal. I want confirmation of the slower moving average or a strong break to the upside to buy the second 1/4BTC. Upon divergent up sloping of the HMA's I'll buy the last. This is a longer term trade, and is another way to in my opinion Hedge vs BTC. The chart also validates are BTC should correct. Look at the August comparison.