Using the classic 10/21 EMA crosses once again, we can see that when it starts to rain, it certainly pours. If this continues downward, will it take a 40-50% price hit like before? Someone better phone the bulls and tell them to wake up or it certainly will.
Going back to basics and using classic 10/21 EMA crosses / touches. Will they successful predict a larger move down now?
* The warnings listed are for larger trend change.
07/28/14 - Looks like they strike again!
This is a follow up to a previous chart I had posted many months ago.
As expected, the price was unable to advance past the upper trend line. However, the price has been holding fairly strong and not decreased by so much. At this time, it looks like a re-test of the upper trend line is to be expected. RSI/STO troughs tend to be a good indicator of recent price...
Analyzing recent RSI troughs and STO on the 1HR shows that things tend to break upwards at about this point, which will once again test current resistance levels (~657).
* There are two circles on STO as I shared this chart via chat yesterday stating the same thing with first circle.
** Intraday focused chart
Assuming we follow a ABCD type pattern and the descending triangle quietly forming for some time (as seen on the daily) breaks down, bitcoin most likely will be in for a ride.
If you have been following me in chat for sometime, you might have heard me say to exit in the upper 600s (due to a H&S-like pattern/pitchfork/etc.). If not, you can see some of the...
When examining 1W/1D charts, it appears STRS is approaching overbought in addition to meeting an upper trend line that has so far held well for two prior touches. Pattern may play out into ascending triangle or maybe even a rising wedge.
* I wouldn't say the angle of the blue line is necessarily that steep however.
**** Scroll down for a less crowded picture ****
Since I get quite a few requests for an explanation of how to use this, I thought I would publish a chart with a few tips and explanations.
Heiken Ashi Candles + EMA (2) + EMA Offset (2) + SAR
To use this method for trading, imagine that the 2-EMA (yellow line) job is to "hold" the candle as the price goes up....
Although we are in a current downtrend channel (and reaching the tipping point might I add), Parabolic SAR, Stoch, RSI, and MACD are all saying we are going to have a little ride up on the price.
Nonetheless, get ready, it's about to be bumpy one way or the other.
Everyone seems to think that bitcoin is going to drop down into 300s any day now, but what if the rate of deflation is much different? Then those orders and perhaps even those in the low 400s would never be filled.
I believe the daily correction has taken its toll. I know this is a bit dangerous to say right now and many are probably thinking the same; considering RSI has not bottomed out just yet. However, I am keeping in mind that bitcoin has a slight bullish bias.
Key resistance levels are still 760-780ish range and I still believe we need to clear 810+ to fully confirm.
Could we be forming a rising wedge long term? Historically on smaller time frames, bitcoin tends to break sideways or continue upwards even though statistically a rising wedge should break downwards. I wonder if that will translate on a much larger time frame; only time will tell (later part of December).
Looks like a possible inverted cup and handle is forming. If you zoom out on my chart a bit, you should be able to see the previous one I pointed out for others.
For a healthy correction, we should continue down closer to 1000 (with ~850 max), but this is bitcoin and you never know!
Bottom line: Correction not over.
It appears that an ascending triangle formation is taking place. If you're in, probably best to hold BTC, however if you're not in then you might be able to catch a lower price before it breaks out closer to the apex. As always, I try not to state "short" or "long" because I am in neither position very long.
Appears that a rising wedge is forming. If we breakout downwards, the price target ranges from $182 to $193; depending on if it comes soon or closer to the apex (1.5 days or so from now).
If you like to stay on the edge and believe that the price will continue to move towards the apex, money can still be made. Additionally, bitcoin doesn't always follow the most...
Based on prior patterns, I believe we are entering a pivotal point. Even if we breakout upwards past the line, we will be testing the previous lower trend line and eventually the upper trend line, which I am calling the "Battleground" since two opposing forces will be heavily concentrated. Therefore, I feel going up will meet much resistance and shorting is a...
On my prior chart regarding big buys coming soon, I believe I had the time frame wrong. When looking at a bigger timespan, we can see big buyers (whales) have already got back in.
I believe one of the great things about BTC is the ability to predict buys based on previous sales. Generally with normal securities/commodities/etc., if you sell, you may flip your...
If we continue to trend upwards, those that sold off during the last major sell off, will have to buy back in to take a profit or to minimize loss.
On the other hand, if we continue downward, cannot pin exactly the threshold before a purchase is made.