Charting #weedstocks - Macro view 7 Feb 2019
New to #weedstocks, my experience is in trading crypto for 2 years.
I am charting the HMMJ as a macro benchmark of the whole #weedstocks market.
Experimented with a few different indicators here, the principle was to find indicators that would have been reliable over the last 18 months.
Settled on:
MA's (10 and 30), looking for crossovers to signify a change in trend
Good old RSI
Volume (not currently pictured)
Clean charts approach, I want to minimise distractions and focus on the big picture.
What I am getting from this:
- #weedstocks tend to yo-yo, with short bursts of uptrend followed by prolonged declines. Expect this to continue in 2019 - but the pace might be different this year, it would be a mistake to assume it will trend in the same time intervals
- I am looking for MA crossovers over a certain number of periods
- RSI was clearly oversold in the last few days, would have provided a great indication of the current correction
- As long as price is above the 10 MA, I think we're in bullish territory
Will be good to see if this is borne out by the next few weeks.
The ideal place to get in would be on support, at the point of a crossover. Yes, there have been fakeouts, this is where I'd look to employ leading indicators and look at their historical performance as a heads-up of the change in trend.
My honest hope? We go back to support and I'm able to load up at that level on the big weedstocks like CGC, assuming there's confluence on those individual charts.
I am charting the HMMJ as a macro benchmark of the whole #weedstocks market.
Experimented with a few different indicators here, the principle was to find indicators that would have been reliable over the last 18 months.
Settled on:
MA's (10 and 30), looking for crossovers to signify a change in trend
Good old RSI
Volume (not currently pictured)
Clean charts approach, I want to minimise distractions and focus on the big picture.
What I am getting from this:
- #weedstocks tend to yo-yo, with short bursts of uptrend followed by prolonged declines. Expect this to continue in 2019 - but the pace might be different this year, it would be a mistake to assume it will trend in the same time intervals
- I am looking for MA crossovers over a certain number of periods
- RSI was clearly oversold in the last few days, would have provided a great indication of the current correction
- As long as price is above the 10 MA, I think we're in bullish territory
Will be good to see if this is borne out by the next few weeks.
The ideal place to get in would be on support, at the point of a crossover. Yes, there have been fakeouts, this is where I'd look to employ leading indicators and look at their historical performance as a heads-up of the change in trend.
My honest hope? We go back to support and I'm able to load up at that level on the big weedstocks like CGC, assuming there's confluence on those individual charts.