A Road Map for the Bitcoin Bulls (at least for the Short Term)
The 2.5% surge yesterday has turned the sideways accumulation into a bull trend. We have lift off (at least on the 30 minute chart) from the 3 days of accumulation (fuel). How long will the rocket soar?
The Andrew's Pitchfork gives us a road map of when to buy more (bottom blue channel) and when to short (falls out of the pitchfork entirely). The price generally congregates around the center (white) line. When the price moves upwards from the bottom channel and hits the middle line, traders normally sell because the center line often acts as resistance when the price is moving up. When the price is falling from the upper channels, the center line can act as support. The best buys are often found in the lower blue channel, especially when the price bounces off of the bottom of the pitchfork (red circle).
How long will this short term bull trend last? Until the pitchfork is broken and the price falls out of it (shorting opportunity). You will notice the 100 and 200 period EMA's offer some support in the bottom channel. The 21 EMA offers some support in the 2nd channel. As I write this, the price has just broken upwards through the center line. For me personally I would not chase it here. I would wait for it to fall back into the bottom channel. I was hoping yesterday's vertical surge was forming another Bart haircut, but this morning the price kept moving up. If it does correct, the price should move back to the lower channel which is a buying opportunity. This is just my opinion. If you want to chase it when the price is above the center line then the price better stay above the center line.
Keep in mind this is a 30 minute chart and used primarily for short term trades. The longer this pitchfork lasts, the better the chances are the longer trends (daily) will follow suit. Keep in mind that if the price falls below the pitchfork, it is a strong sell signal and many traders would short it. So if you don't believe in this short term bull trend of mine, then wait for the pitchfork to fail and then short it.
I hope this road map helps you on your journey to profits.
(Don't forget to smash the like button before you leave.)
The Andrew's Pitchfork gives us a road map of when to buy more (bottom blue channel) and when to short (falls out of the pitchfork entirely). The price generally congregates around the center (white) line. When the price moves upwards from the bottom channel and hits the middle line, traders normally sell because the center line often acts as resistance when the price is moving up. When the price is falling from the upper channels, the center line can act as support. The best buys are often found in the lower blue channel, especially when the price bounces off of the bottom of the pitchfork (red circle).
How long will this short term bull trend last? Until the pitchfork is broken and the price falls out of it (shorting opportunity). You will notice the 100 and 200 period EMA's offer some support in the bottom channel. The 21 EMA offers some support in the 2nd channel. As I write this, the price has just broken upwards through the center line. For me personally I would not chase it here. I would wait for it to fall back into the bottom channel. I was hoping yesterday's vertical surge was forming another Bart haircut, but this morning the price kept moving up. If it does correct, the price should move back to the lower channel which is a buying opportunity. This is just my opinion. If you want to chase it when the price is above the center line then the price better stay above the center line.
Keep in mind this is a 30 minute chart and used primarily for short term trades. The longer this pitchfork lasts, the better the chances are the longer trends (daily) will follow suit. Keep in mind that if the price falls below the pitchfork, it is a strong sell signal and many traders would short it. So if you don't believe in this short term bull trend of mine, then wait for the pitchfork to fail and then short it.
I hope this road map helps you on your journey to profits.
(Don't forget to smash the like button before you leave.)
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