Tone Vays (Tom DeMark Indicator) Beginning To Show Positive SignWhile I love Tone Vays, I do not always agree with his predictions. Tone uses the Tom DeMark indicator and has modified it.
Today’s Daily Chart has us at a Red 8 so far. Using the traditional indicator states that after a Red 9, you should look for a reversal in direction. However, lately in bitcoin, the reversal has begun when a Red 8 has appeared. We seem to be encountering this today with the reversal showing a strong green candle and a pop to the upside of over $400 so far.
It should be stated here that one upward candle does not a chart make, so Tone would say wait for the candles to turn into a Green 1 and then if the next one opens above the daily close of the previous candle (a green 2), you can enter a long position with appropriate stops.
We need to watch that next daily candle on this chart. If history holds, then the Red 8 will mark the beginning of the rally as this has lately been the turning point. We “could” get a red 9 and then a following couple of downward candles without number counts, but this is just a signal of exhaustion should this occur. In summation, we are strongly encouraged to look for prices to turn in this area, and today’s green candle and red 8 are very much in the bullish category. Utimately a green 1 and green 2 will signal a good upward move is commencing if the green 2 opens above the green 1.....I am just calling it earler, and albeit cautiously, that 8 is the turning point.
In addition to the Red 8 and Green Candle, we see that MACD shows momentum is changing to the upside, indicated by the first moving average beginning to slant up. I’d like to see the histogram go above Zero to signal bias has shifted from down to up. Usually that is when we will see an acceleration.
Stochastic has also turned to the upside after being oversold for quite a while.
The SAR indicator (line of blue crosses) is also very close to triggering a reversal. This happens when the candle closes “through” the ever adjusting indicator itself. SAR stands for Stop And Reverse. It is one of my favorite indicators for day trading and has been very useful on daily bitcoin charts. Once we penetrate this indicator, that should confirm we are moving upwards as it aligns with all the other ones put together for a nice picture of trend reversal. SAR can give false starts but when combined with MACD and Stoch it is very strong and one of my go to predictors.
And lastly Gann timing indicators begin strongly June 1st, and for most of the month, with the Summer Solstice on June 21st 2018. I recently said in the beginning of May that Gann showed a rocky month. It looks like that was a correct prediction. June however seems to be showing the opposite with it being a good month, and last year June was the springboard that launched us all the way to December with higher and higher prices.
We aren’t quite out of the woods yet, but me likey a lot right now, a LOT Lot.
Targets and resistances....look for resistance at the 50 day moving average and the 200 and also the $10,000 mark where got stopped the last time. Breaking through $10,000 and holding above it with a close above $12,000 will bring in FOMO taking us to new All Time Highs by year end. In addition, I think we can safely say more bulls will take charge between 9000 and 9200. Watch all of these prices closely.
HODL
