Price will always be contained to the 1.25 stdev of the longest overexpanded period once compression begins.
Bitcoin, without a doubt, will revert to exactly the 50 MA the the 110 MA on the four hour chart before trend could even have a chance to continue.
Price will not leave the blue band until the reversion completes and the wave PM reading of the 110 period reads below 0.7.
In two days time, I will update this chart with exactly that scenario.
Bitcoin, without a doubt, will revert to exactly the 50 MA the the 110 MA on the four hour chart before trend could even have a chance to continue.
Price will not leave the blue band until the reversion completes and the wave PM reading of the 110 period reads below 0.7.
In two days time, I will update this chart with exactly that scenario.
Note
I went ahead and loaded up the higher resolution version of 3D wave PM on a shorter timeframe to more accurately represent the longest over expanded period. The longest over expanded period on the 1h chart is the 275 Period. A CCI roll down of the 27 period on the 1h chart will best identify the entry into the mean reversion condition.
More accurately than the previous listed value of the 4h 50 MA, BTC will now revert exactly to the 275 MA before trend continuation is possible.
Note
Price will trade laterally as defined by the longest over expanded period's 1.25 standard deviation as long as that period has a mass reading above the 0.7 value. You'll notice as soon as the volatility overhead evaporates and reads below the 0.7 value, price immediately begins to escape the 1.25 standard deviation, voiding the mean reversion condition. If the condition evaporates, you no longer expect mean reversion. Perfectly enough, price began its new trend the same candle that the 275 mass reading read below 0.7.
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.
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.