Guys, I hate to be the bearer of bad news but this chart looks ugly. When I zoom out to the Weekly chart the RSI looks hideous with lower lows but the rest of the chart is illegible because of price spike so I just want to look at this daily chart. Looking at the price, we see compression on the support of the thin trading zone, where price has moved through quickly. This type of compression doesn't look like a bottom and the rising RSI channel isn't conducive to bottoms generally, yet mostly serve as a continuation flag for the next move down. Looking at the ADX trendline, we can see our trend has been compressing for many months and is coiling below 20 presently, which means a new big move may be imminent. Price could hold here and this could be a nice bottom. However, everything to me says this is going lower and while I see it as a stretch to hit .01, it's entirely within the realm of possibilities. I realize what this means for ethereum and probably most altcoins, but I am still a long term bull. The market just seems very overbought and the prevailing mentality is just buy any time they are down and you will profit, that can't last long. I'm sitting in cash besides this short to weather the upcoming storm, but I am ready to buy back ASAP. Good luck out there.
Looking further at the weekly indicators we can see while price has been flat DI- has been getting hammered with lower highs and lows while DI- does the opposite.
KarloMaySottoManiacup
⋅
@jamiecassels, im a newbie, can i ask what does DI mean?
jamiecassels
⋅
@KarloMaySottoManiacup, Hi, the DI-, DI+, and ADX all make up the Directional Movement Indicator. It's my 2nd favorite indicator after RSI and is used to measure the strength of a trend as well as if the trend is expanding or compressing. If you use it with RSI and price trendlines you can tell when a move is shaping up to be a big one. You can read more about it the indicator here, thanks for checking out my charts. tradingview.com/wiki/Directional_Movement_(DMI)
jamiecassels
⋅
@KarloMaySottoManiacup, Sometimes I like to break down the indicator and just look at one part at a time, it helps make it clearer for me. Here is the daily chart of ETHBTC and we can see DI- is forming what looks like a bottoming pattern.
jamiecassels
⋅
@KarloMaySottoManiacup, then we can look at the DI+ and see it has formed a bearish flag and looks to continue falling (still daily ETHBTC chart).