Don't Get Fooled by the Daily

POLONIEX:ETCBTC   Ethereum Classic / Bitcoin
264 8 6
The notes speak for themselves. This is a Weekly Chart. For those who may not know what that is; each candle is one week. I will work on the Daily for ETCBTC as soon as I post this update.

The Daily will explain why I gave this publishing this title.


Comment: Copying and pasting again as usual because the chart is scrunched up again in the initial publishing.

Comment: The above chart is NOT the Daily. That is coming up.
Comment: I believe everyone can see there is a BIG difference between the Weekly and the Daily in terms of where one might think Preliminary Support is located. If one believes it is located where the yellow line is located, they are incorrect in my opinion. It's possible we could end up having a red accumulation line relocated to where the yellow line is currently because accumulation lines can change on the fly while accumulating. Especially, after shakeouts and/or throwbacks.
Comment: We are still working our way towards our top of an Automatic Rally. Everything still looks good in the Weekly. This is the Daily just for a little more info of what's occurring each day to reflect our weekly candles.

what is the method used to determine the first red line at 0.00136 ? i don't see it cross any peaks . I am confused at how you set it. Thanks
@SamHuynh, First, let me say, ETC is in its infancy. So, waiting for preliminary support to rear its head took some time. I made a note on how to identify it by the long wick underneath a green candle in a bear (down) trend. Yet it continues down IN A SELLING CLIMAX afterwords to find SUPPORT ON THE BOTTOM END. PRELIMINARY SUPPORT is the goal the Composite Man wants to work towards.

FIRST, he needs to WORK on accumulating coins for quite a while before taking us back up to Preliminary support to take profits from all he has accumulated over a period of time. We are in the beginning stages of him WORKING along the red accumulation lines for the purpose of accumulating. He can switch back and forth (up and down) from one red line to another with Automatic Rallies (AR) and he can use shakeouts to go back down to TEST to make sure we still have SUPPORT on the bottom end. He doesn't have to use shakeouts to TEST for support on the bottom end. He can simply take a few days off and the market will go down on its own on low volume. Then, he can come back in the market and begin buying coins on the cheap that results in another automatic rally at times. Sometimes, he simply accumulates via swing trading on the upside and downside of a red accumulation line.

As far as the placement of those lines. An entire chapter in a book can be written for that and you can find that in many books. It depends on what time frame you are in as well. Yellow lines can be used on the upside and down side of the red lines to mark the ACTUAL support (bottom side of the red accumulation line) and resistance (top side of the red accumulation line) if one intends to swing trade along the red accumulation lines. I don't bother with those yellow lines most of the time cause I can just see them without plotting them most of the time. I simply move my cursor to see about what value (Dollar or BTC amount) support (bottom side) and resistance (top side) actually are.

Since ETC is in it's infancy, I would recommend for you to place a red line in the middle of wavy action on the daily with yellow lines (or whatever color you choose) on the up side and down side of the red line to determine support and resistance on each side of the red line. To know precisely where to put those lines when swing trading in smaller time frames, like the 4h and lower, I would recommend buying a book to teach you proper placement because it's not that cut and dry to explain. IT would take an entire chapter in a book to cover every detail.

Buy this book if you can, it's a damn good book that includes the information you seek as well as the methods I'm using for long term analysis to have a good idea of when to enter and exit. It trains your eyes on how to actually SEE TRADES.

+1 Reply
@SamHuynh, Since ETC is so young, we have only recently begun to get any kind of indication where the Composite Man wants to work for the purpose of accumulation in waves along a red line. It's like he TESTS for support and resistance while he's accumulating and the red line falls where it may. I've seen it change on the fly several times. It's rather tricky when making this determination on a coin just emerging into it's very first Wyckoff cycle to a spring.
ProwdClown ProwdClown
@ProwdClown, When I say, "... the red line falls where it may..." is because support and resistance can change on the fly. I usually just keep them where they are located in my charts to keep from confusing people.
@SamHuynh, When I say, "... the red line falls where it may..." is because support and resistance can change on the fly. I usually just keep them where they are located in my charts to keep from confusing people. For more detailed analysis on where those support and resistance lines fall on the upside and down side of a red line in the middle , you will have to go to lower time frames to find support (bottom end where buyers are dominant) and resistance (top end where sellers are dominating and pushing it back down).
ProwdClown ProwdClown
@ProwdClown, That's if you are trading in smaller time frames.
@SamHuynh, The main reason support and resistance can change on the fly is because volume, supply and demand can change on the fly.
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