BTC/USD – Important MA's for intermediate term price action
Updated
In this chart I would like to show the influence of 3 important exponential moving averages on the intermediate price action in BTC – in order to develop a dynamic trade view based on Fibonacci analysis.
This chart is a follow-up on my previous one on the Fibonacci Speed Resistance Fans & Fibonacci Channels. I have left the Fib fans out in the current presentation, because otherwise the chart would become too dense. But they are all meant to be present in one chart – which is how I have it on my own computer.
So, for the purpose of a clear presentation, I have split the analysis up in two parts, and this is going to be “part 2”, again a 4-hour chart, in which I have included 3 important exponential moving averages, shown here in pink.
The current price action in March 2018 is capped, in my opinion, by the daily 144-EMA (which incidentally roughly equals the weekly 21-EMA – because 7 days in a week, 7 times 21 makes 147, which is roughly equal to 144).
And the current price action is supported, in my opinion, by the weekly 55-EMA.
Now, in the current falling market, both the daily 144-EMA and the weekly 55-EMA are still rising, and this may explain the current huge volatility in the BTC price action.
However, in my opinion both these EMA’s may not be rising much longer. And then when the price action enters another phase, when it starts making lower lows, other moving averages may come into play.
And do you know how you can plot a weekly moving average on a 4-hour chart? I’ll try to explain it here.
Let’s start with the daily 144-EMA. We have a 4-hour chart, and there are 6 4-hour periods in one day. So, the daily 144-EMA “translates” as a 4-hour 864-EMA (because 144 times 6 makes 864).
And the weekly 55-EMA is similar to 4-hour 2310-EMA (because there are 6 4-hour periods in one day, and 7 days in one week: 6 times 7 times 55 makes 2310).
I hope this may give some further insight. Best of luck with your trades.
This chart is a follow-up on my previous one on the Fibonacci Speed Resistance Fans & Fibonacci Channels. I have left the Fib fans out in the current presentation, because otherwise the chart would become too dense. But they are all meant to be present in one chart – which is how I have it on my own computer.
So, for the purpose of a clear presentation, I have split the analysis up in two parts, and this is going to be “part 2”, again a 4-hour chart, in which I have included 3 important exponential moving averages, shown here in pink.
The current price action in March 2018 is capped, in my opinion, by the daily 144-EMA (which incidentally roughly equals the weekly 21-EMA – because 7 days in a week, 7 times 21 makes 147, which is roughly equal to 144).
And the current price action is supported, in my opinion, by the weekly 55-EMA.
Now, in the current falling market, both the daily 144-EMA and the weekly 55-EMA are still rising, and this may explain the current huge volatility in the BTC price action.
However, in my opinion both these EMA’s may not be rising much longer. And then when the price action enters another phase, when it starts making lower lows, other moving averages may come into play.
And do you know how you can plot a weekly moving average on a 4-hour chart? I’ll try to explain it here.
Let’s start with the daily 144-EMA. We have a 4-hour chart, and there are 6 4-hour periods in one day. So, the daily 144-EMA “translates” as a 4-hour 864-EMA (because 144 times 6 makes 864).
And the weekly 55-EMA is similar to 4-hour 2310-EMA (because there are 6 4-hour periods in one day, and 7 days in one week: 6 times 7 times 55 makes 2310).
I hope this may give some further insight. Best of luck with your trades.
Trade closed manually
It is all Fibonacci.
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