BerryBird7289

BTC Bart Pattern Trading Possibly the best way to spot it?

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
The bart simpson pattern is made of an initial green candle followed by consolidation that takes the form of sideways action, rising/dropping price consolidation. Here, on the 1hr time frame we can see how this pattern comes to be, on the Elder's Force Index .

The first green candle is met with great price action and volume , hence the spike. However, that price action is not backed by volume and gradually gets exhausted, hence usually falling back to the 0 line. This creates a bearish divergence since the price usually stays sideways or goes up, while EFI shows lower and lower volume .

Finally, to see if the next cycle of bart pattern would come next, checking whether EFI shows bullish divergence or not may be an indicator.

So far, the last few bart simpsons (or at least those initial large green candle waves) seem to be following the similar moves on EFI .

It's late now, so tomorrow I will go back to the past and dig up other example of Bart simpsons and see how valid this may be as an indicator.
Comment:

Now that we have dropped, now we look for possible bullish divergences.
Comment:

Looking at past examples, right now we have to show strength to be able to penetrate 0 line. If we do not, we may see a sharp drop.
Comment:

This may be another fractal we may follow.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Help Center Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out