Using Time-At-Mode Methodology on a daily time frame - you can see how the structure of the rally in Bitcoin developed and where the modes were and how the market acted around those modes as they increased over time.
The maximum time you can have at one price is 20, so Bitcoin was on its very last day when it accumulated a total of 20 days at the 240 level just prior to its rally that started on February 26. The various measuring sticks gave an incredible 100% range (the low of January to the rebound high in January was in excess of 100%, 152 low to 310 high, rounded off).
A more conservative range was to just look at the LOWEST HIGH of the decline and the HIGHEST LOW of the rally, which gives us a measurement of 19+%. Applying the 19% range to the end of the mode gave a projection of 285 which the market reached in 5 days and closed above after 11 days.
Since I did not publish this along the way, since you can see it takes some time and concentration to calculate these levels, I can only see that Bitcoin could pull back to the 240 area where the lift-off started from. That would provide the LOWEST RISK, HIGHEST REWARD possible trading level. The markets don't always give you those trades very often, so we can just watch and wait and see.
I think what I wanted to achieve by showing you this chart was to reveal the very balanced structure and the accumulation levels and how the market behaves around these levels as it develops in a rally. These levels are independent of trend lines and moving averages and as such, provides a VERY CLEAR reading of what position the market is in and what the potentials are.
I will look for a move to within 1 average range (11-bar avg range) of the mode at 240 and look for the daily range to contract. Then I would buy as long as the range of trading is not expanding to the downside. Use at least a 1-average range stop under the mode. Target is the 285-290 level from the 240-245 long-entry level.
Keep posted or message me to remind me to take a look at the chart as it approaches the "LOW RISK BUY LEVEL".
Tim
2:50PM EST March 18, 2015 267.30 last BTCUSD
NOTE OTHER TIME FRAME LINKS BELOW - WEEKLY AND MONTHLY
The maximum time you can have at one price is 20, so Bitcoin was on its very last day when it accumulated a total of 20 days at the 240 level just prior to its rally that started on February 26. The various measuring sticks gave an incredible 100% range (the low of January to the rebound high in January was in excess of 100%, 152 low to 310 high, rounded off).
A more conservative range was to just look at the LOWEST HIGH of the decline and the HIGHEST LOW of the rally, which gives us a measurement of 19+%. Applying the 19% range to the end of the mode gave a projection of 285 which the market reached in 5 days and closed above after 11 days.
Since I did not publish this along the way, since you can see it takes some time and concentration to calculate these levels, I can only see that Bitcoin could pull back to the 240 area where the lift-off started from. That would provide the LOWEST RISK, HIGHEST REWARD possible trading level. The markets don't always give you those trades very often, so we can just watch and wait and see.
I think what I wanted to achieve by showing you this chart was to reveal the very balanced structure and the accumulation levels and how the market behaves around these levels as it develops in a rally. These levels are independent of trend lines and moving averages and as such, provides a VERY CLEAR reading of what position the market is in and what the potentials are.
I will look for a move to within 1 average range (11-bar avg range) of the mode at 240 and look for the daily range to contract. Then I would buy as long as the range of trading is not expanding to the downside. Use at least a 1-average range stop under the mode. Target is the 285-290 level from the 240-245 long-entry level.
Keep posted or message me to remind me to take a look at the chart as it approaches the "LOW RISK BUY LEVEL".
Tim
2:50PM EST March 18, 2015 267.30 last BTCUSD
NOTE OTHER TIME FRAME LINKS BELOW - WEEKLY AND MONTHLY
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