I made this educational analysis for someone that requested in this idea:
Well let’s start working down from the big-time frame chart to a smaller time frame.
The weekly chart:
First, you see that the price is moving above the 50 periods moving average, but the question now is: will the price stay above the 50 periods moving average. It’s kind of hard to answer this because as you see on the chart the price is close to the golden ratio Fibonacci line. If the price closes above the 61.8% line, then it is likely that the price will stay above the moving average.
There is a slightly higher chance that the price will stay above the moving average, because of the information on the MACD. As you can see the MACD line is still above the signal line and both are above the zero line. This means that there is still a strong momentum behind the movement.
What you should remember from this chart
- Price is at a point of indecision, the price can either go up, down or moving sideways
- There is a slightly higher chance that the bulls continue the trend.
Daily chart
The price has entered the ‘Daily – R1’ for the second time, which means that sellers have been absorbed in this area, this means that the resistance is becoming weaker because there are fewer sellers in this area.
The next thing is that the price is still in an uptrend because of the 200 periods moving average
On the MACD you see that the MACD line is below the signal line, but both are still above zero. This means that there is no momentum behind the movement, but it doesn’t mean that the price will go down. It can also go sideways and up again. But if the MACD line will cross above the signal line again in a few days, then there is still strong momentum
Summary
- Daily R1 may break
- Price is still above the 200 periods moving average
- No momentum anymore, the price can go sideways.
4H - chart
Price is still above the 200 periods moving average. On the MACD you see that the MACD and signal line is really close to each other and also really close to the zero line. If the MACD and the signal line are crossing above zero and MACD line > Signal line, then it is possible that on the daily chart the MACD will cross the Signal line. So it is smart to keep an eye on this on the daily chart, so it reconfirms your long position
Summary:
- Check out if the MACD and Signal line is going above zero
- Reconfirm long position on the daily chart with the MACD
Well let’s start working down from the big-time frame chart to a smaller time frame.
The weekly chart:
First, you see that the price is moving above the 50 periods moving average, but the question now is: will the price stay above the 50 periods moving average. It’s kind of hard to answer this because as you see on the chart the price is close to the golden ratio Fibonacci line. If the price closes above the 61.8% line, then it is likely that the price will stay above the moving average.
There is a slightly higher chance that the price will stay above the moving average, because of the information on the MACD. As you can see the MACD line is still above the signal line and both are above the zero line. This means that there is still a strong momentum behind the movement.
What you should remember from this chart
- Price is at a point of indecision, the price can either go up, down or moving sideways
- There is a slightly higher chance that the bulls continue the trend.
Daily chart
The price has entered the ‘Daily – R1’ for the second time, which means that sellers have been absorbed in this area, this means that the resistance is becoming weaker because there are fewer sellers in this area.
The next thing is that the price is still in an uptrend because of the 200 periods moving average
On the MACD you see that the MACD line is below the signal line, but both are still above zero. This means that there is no momentum behind the movement, but it doesn’t mean that the price will go down. It can also go sideways and up again. But if the MACD line will cross above the signal line again in a few days, then there is still strong momentum
Summary
- Daily R1 may break
- Price is still above the 200 periods moving average
- No momentum anymore, the price can go sideways.
4H - chart
Price is still above the 200 periods moving average. On the MACD you see that the MACD and signal line is really close to each other and also really close to the zero line. If the MACD and the signal line are crossing above zero and MACD line > Signal line, then it is possible that on the daily chart the MACD will cross the Signal line. So it is smart to keep an eye on this on the daily chart, so it reconfirms your long position
Summary:
- Check out if the MACD and Signal line is going above zero
- Reconfirm long position on the daily chart with the MACD