If you are in an uptrend (use the daily) you are going to look for a few key identifying factors for re-accumulation.
One of the most useful ways to know the re-accumulation cycle ongoing is when an RSI set at 7 is below the axis level of RSI (50 level).
If you are familiar with Wyckoff you want to look for your spring below axis (below 25-30 level even better).
This is just one piece.
It's not only RSI below axis. We also want to see a convergence with at least one additional target. Targets being EMA's, FIB, lower half of trend channel, demand trend line and Support (or a combo of these).
We also need to see the appropriate volume to confirm initiation of re-accumulation. (stopping volume, climactic volume).
The current situation shows BTC playing around this 20K ish level. It looks like they are taking profit. Its still an uptrend so I am still looking for re-accumulation. Because price is pretty high I want to see what happens here and how the market handles 19-20K in addition to all the US politics,Holiday season, financial news ETC.
Not a bad tactic to keep the risk light when there is all this push and pull going on everywhere.
But if you are going for it... BUY LOW/SELL HIGH!
One of the most useful ways to know the re-accumulation cycle ongoing is when an RSI set at 7 is below the axis level of RSI (50 level).
If you are familiar with Wyckoff you want to look for your spring below axis (below 25-30 level even better).
This is just one piece.
It's not only RSI below axis. We also want to see a convergence with at least one additional target. Targets being EMA's, FIB, lower half of trend channel, demand trend line and Support (or a combo of these).
We also need to see the appropriate volume to confirm initiation of re-accumulation. (stopping volume, climactic volume).
The current situation shows BTC playing around this 20K ish level. It looks like they are taking profit. Its still an uptrend so I am still looking for re-accumulation. Because price is pretty high I want to see what happens here and how the market handles 19-20K in addition to all the US politics,Holiday season, financial news ETC.
Not a bad tactic to keep the risk light when there is all this push and pull going on everywhere.
But if you are going for it... BUY LOW/SELL HIGH!
Comment:
Mark-up phase will initiate below 50 on RSI.