BTC: LSMA Confirms Bear Trend.
LSMA (Least Square Moving Average) is a great tool to predict and confirm market trends. When using LSMA 32 from multiple timeframes on the BTC chart we can see that price action has fell way below the weekly and daily lines. The general rule for LSMA is that when price action crosses over the line it begins a bull trend. When price action crosses under it sparks a bear trend. When price travels on or close to the line you can expect plenty of sideways action. The direction of the line suggests the trend and its strength so while the price action may crossover the LSMA line it is not confirmed until the line points upward in bull direction. This is the one hope for BTC... The weekly LSMA 32 is still pointing in a bull direction.
Example of LSMA:
A sneek preview into the future...
By applying a "zero lag" formula on the LSMA line we can get a glimpse of the future. This line shows the linear regression of price action with close to zero lag. Sometimes when using this line "live" traders can see a change in trend before it happens.
The zero lag LSMA shows us that BTC has been building into this bear trend for quite some time now and like its laggy counterpart it also shows the weekly line pointing in bull direction. While the weekly lines have not confirmed a bear market the daily lines suggest that Bitcoin will be travelling down far enough to complete phase D of the Wyckoff Distribution Schematic. If this is the case we can expect a price target around 30k
Example of LSMA:
A sneek preview into the future...
By applying a "zero lag" formula on the LSMA line we can get a glimpse of the future. This line shows the linear regression of price action with close to zero lag. Sometimes when using this line "live" traders can see a change in trend before it happens.
The zero lag LSMA shows us that BTC has been building into this bear trend for quite some time now and like its laggy counterpart it also shows the weekly line pointing in bull direction. While the weekly lines have not confirmed a bear market the daily lines suggest that Bitcoin will be travelling down far enough to complete phase D of the Wyckoff Distribution Schematic. If this is the case we can expect a price target around 30k
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.