RSI will be your undoing. Can MFI beat Skynet
Updated
Are we on an uptrend - even if it is short lived?
I've become a fan of MFI as I learn more about it - perhaps it will be a passing FAD as I continue to play with bb but in this world of HFT bots I need any weapon I can get our hands on to slay the Market Maker.
I've updated RSI and MFI to a length of 50 periods (instead of 14) as the pricing action is too erratic to draw valid trends at higher frequencies - this might also lose some of the more aggressive Skynet / High Frequency Trading Bot action but that is no bad thing (clear on 20 periods).
Identifying the confirmation GAP:
- I've noted the missing volume over the last few months that resulted in failed and successful breakouts.
-- Fail = the price and RSI indicate momentum but MFI suggests this is not volume driven and likely to collapse - which it invariably does. I think that sometimes HFTB are creating the trend, sometimes they are picking up on a trend and extending it to failure to draw in FOMO investment.
-- Real = the volume is there to warrant real momentum, RSI confirms momentum.
-- Oddity = I can't explain this yet. There is a spike in volume but the market then drops - this is the only instance I can find in BTC history (hence singularity)
Current status:
Despite the weird bot stuff, volume is coming in and maintaining levels even when price drops - I'm long short term. My mid-term target zone was hit (Long term/hope is 3k) but did not trigger my conservative stops so I have only dipped my toe in - no doubt a similar strategy for most level, retail and retracement folk so expecting a retracement down to hook us in.
Bots are eating this market alive and the whole thing is a trap. Best, John Connor... I mean Hard Forky ;)
- More on MFI in my previous ideas. Check out HFTB destruction on a video network of your choice.
I've become a fan of MFI as I learn more about it - perhaps it will be a passing FAD as I continue to play with bb but in this world of HFT bots I need any weapon I can get our hands on to slay the Market Maker.
I've updated RSI and MFI to a length of 50 periods (instead of 14) as the pricing action is too erratic to draw valid trends at higher frequencies - this might also lose some of the more aggressive Skynet / High Frequency Trading Bot action but that is no bad thing (clear on 20 periods).
Identifying the confirmation GAP:
- I've noted the missing volume over the last few months that resulted in failed and successful breakouts.
-- Fail = the price and RSI indicate momentum but MFI suggests this is not volume driven and likely to collapse - which it invariably does. I think that sometimes HFTB are creating the trend, sometimes they are picking up on a trend and extending it to failure to draw in FOMO investment.
-- Real = the volume is there to warrant real momentum, RSI confirms momentum.
-- Oddity = I can't explain this yet. There is a spike in volume but the market then drops - this is the only instance I can find in BTC history (hence singularity)
Current status:
Despite the weird bot stuff, volume is coming in and maintaining levels even when price drops - I'm long short term. My mid-term target zone was hit (Long term/hope is 3k) but did not trigger my conservative stops so I have only dipped my toe in - no doubt a similar strategy for most level, retail and retracement folk so expecting a retracement down to hook us in.
Bots are eating this market alive and the whole thing is a trap. Best, John Connor... I mean Hard Forky ;)
- More on MFI in my previous ideas. Check out HFTB destruction on a video network of your choice.
Note
MFI now dropping off - Bart looks like it is gonna drop
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