Whenever I want to FOMO buy something that's gone way up, it's always a good idea to check out the acceleration of the advance.
An easy way to do this is to use rays to draw trendlines. If the trend has accelerated without retesting, forcing you to draw a new one, then that generally reflects instability. The more rays you have to draw, the more unstable price...
Using the RSI on Daily-sized candles has been an excellent tool for deciding when to close a trend-following position and start looking for a counter-trend play.
Key points to look for:
Bullish divergence has to reach the oversold range
Look for re-test of support before entering
Aim to close at major resistance
Ideally the open interest on Bitfinex would be in...
We have a confluence of factors pointing in the same direction. Here's the data points and anticipated targets:
-Swing Failure Pattern at yesterday's close on the daily candle. Good enough pattern to justify entering a small long on it's own.
-Bullish Divergence on the daily RSI. This has been followed by a 40% move every time it has appeared at the...
Bullish divergence is a great way to spot an exhaustion of selling pressure in a bear trend and a short term reversal. As you can see here, it's been spot on through the downtrend, and each time has been followed by a move of around 40%.
One thing to consider is that the entries aren't always perfect. Looking at June 22nd and the bullish div we had there, we...
Strong bearish divergence showing on the 4 hr. It's not really showing on the daily yet so I'm not expecting a big move.
But, shorting BTC here hedges my margin long alt buys. Both have good R/R's, so if one play stops out the other should still make enough to cover.
Targeting 6,880 for the short even though everyone says we won't get there... We'll see!
Evening Star candle on the daily, looks like there's a high probability we go down to test support.
Opened a small short to target the $6800 range, followed with a bigger buy to close position and long support.
Good R/R on both
Perusing the alt charts lately and this one in particular is shouting its message loud and clear for the big picture.
Notice the high volume bars, what do they have in common? A selloff followed by big buy action in the same candle. In fact, if we go back 12 months we see the same pattern. Biggest volume is always on the red candle. This means that price would...
Potential Head and Shoulder Bottom pattern forming:
Price Trend- down leading to pattern (+)
Shape- 3 valley pattern with middle valley below the others (+)
Symmetry- two shoulders should be near the same price (+, ->6300), same distance from head (-, not really, right shoulder about 7 days from head whereas left is bout 3 days)
The RSI is in general, not a tool that I'm a big fan of because its only valid when price is ranging. The exception being when it's showing a divergence from price action, as that is typically quite a powerful tool when in either an uptrend or a downtrend.
I copied this chart from @CryptoTrendy (he's on TradingView and Twitter- you should follow him), and it's...
AVT/BTC is super tiny (ranked 555 on coinmarket cap), has limited market exposure (on Bitfinex and OkEx and not much else, no Binance, Bittrex, Cryptopia, etc.), it's also basically been in a downtrend since it's ICO. It has a long consolidation period with little volatility. Recent uptick suggests it's waking up again.
ICO- oversubscribed, they reached their...
Still overall bearish until 3-5k, but am short-term bullish since conclusion of falling wedge from 11.7k to 6.5k and also looking out for a bull trap at this late phase of the bear. The flip of the ATR indicator and the close proximity of the log down trendline (light greenish blue line from $20k on down) gives two scenarios (A&B) that I think are most likely:...