Tron TRX Daily Heikin Ashi MA BB RSI MAC
Overall Summary:
Overall the last 7 days (from the 25th to the 31st of January) were neutral and I am bearish for the next 7 days. After a two month uptrend, and the issuance of the BitConnect Token (BTT), I believe that we will see a significant medium term down trend.
Detailed Summary:
This chart uses daily Heikin Ashi Candlesticks with a custom trend bar indicator, Bollinger Bands, 4 MAs (20, 50, 100 & 200), RSI & MACD.
Heikin Ashi candlesticks are great for trend and swing trading. Heikin Ashi means ‘average’ in Japanese because these candlesticks ‘average out’ price action vs traditional candlesticks that are based on OHLC (Open High Low Close). By averaging out price action this candlestick style reduces ‘noise’ and generates a much smoother chart pattern. This is helpful for trend traders as it is easier to identify the key trend in the market and to ignore smaller price volatility.
During the last week the price has ranged by $.05, opening at $0.26 and closing at $0.26. The price has peaked over the period at 0.31 and the declined but is still in continuation with the long term pattern.
Moving Average are also used on this chart to help identify major areas of S&R and general price trend action. I prefer to use simple Moving Averages on the daily time frame. The 200 MA is red, the 100 MA is orange, the 50 MA is yellow and the 20 MA is green. The choice of colours helps me to read the chart and see if price action is bullish or bearish. For example, if the red is on top and the green is on the bottom, it is clearly bullish. It is also important to note that the longer the Moving Average period, the stronger the support and resistance.
During the last week the price is closest to the 20 Moving Average and during this period it has trended around the 20 Moving Average. The 200 Moving Average is currently acting as resistance while the 50 Moving Average is acting as support. The key Support area is $0.21, 0.18 and 0.13 and key Resistance areas is $0.35. I forecast in the next week that price will test the next support area.
Bollinger Bands are the two blue bands that ‘wrap’ around the security’s price. The top and bottom are two standard deviations away from the Moving Average. If the market becomes more volatile, the bands widen and vice versa. Historically 90% of the price action occurs with the Bollinger Bands, as the price oscillates around an equilibrium. There it helps us identify where the price is in the oscillating cycle so that we can identify entry/exit points and major price changes (on the 10% chance when price breaks through the Bolling Bands).
During the last week the Bollinger Bands have contracted 0.01 by $ from $0.07 to $0.06. The decrease in the Bollinger Bands width was due to decreased price volatility during the last week. The wicks broke through the upper band on 2 daily candles, lower band on 0 daily candles and stayed within the bands on 5 daily candles. I forecast in the next week that the Bollinger Bands will increase and overall trend is bearish.
Volume is a key indicator that I use to understand past, current and possibly future price action. Unfortunately a majority of the exchange volume is fake ‘wash’ trading so it is important to rely on data from reliable exchanges like Binance and BitFinex. Volume that supports price recent action helps strengthen my belief in a specific trend.
During this period volume has decreased in divergence with the recent price action. On a longer term time frame, the volume is below the 20MA volume line. I forecast in the next week that the volume will increase and this will support a decrease of price.
Volume Profile Visible Range (VPVR) indicator show volume by price as a horizontal histogram for the charts visible range. This provides additional insight over traditional volume indicators that are only based on time. By clearly seeing what volume occurred at specific price levels, I can more easily identify key areas of S&R. Two key things to identify are the: POC (Point of Control) which is the price level with the highest volume for a specific period, and the VA (Value Area) which is where 70% of the volume occurred. While VAH (Value Area High) and VAL (Value Area Low) are also worth noting.
During the period the VPVR POC was at 0.28 and the VA occurred between 0.26 and 0.28. Overall, the volume profile is bearish and is in convergence with price action.
The RSI is a popular momentum based oscillator that helps us identify what stage in the security’s oscillation cycle it is most likely at. So after identifying the key market trend we can then apply the RSI to forecast future moves in price action (in terms of velocity and magnitude). This indicator is useful determining entry and exit points, for trend traders like myself, it is used on longer time frames as it is much more reliable. Most of the significant price action occurs around the 30 and 70 areas and ideally what we are looking for is divergence between the price action and the RSI.
During the period the RSI decreased by 9, from 65 to 56 and it is in divergence with the recent price action. It has demonstrated a bearish failure swing is when the RSI rises above 70 (considered overbought), RSI drops back below 70 then RSI rises slightly but remains below 70 (remains below overbought) and finally RSI drops lower than its previous low.
I forecast in the next week that the RSI will decrease and this indicates a decrease of price.
The MACD is a popular trend following momentum indicator that can help identify a security’s momentum, trend direction and duration. is a popular trend momentum indicator that can show us a security's overall trend. The core assumption of this indicator is that a security’s price oscillates around an equilibrium. Therefore by looking at the relationship between different MA calculations, we can identify what specific stage a security maybe of it oscillation cycle. This is why we have two lines, the first is called the MACD (26 - 12 MA) and the second is called a Signal line (9 MA). We also have a Histogram (MACD-Signal Line), which is the 1st thing I look at. Finally there is the Zero line, which is basically when the 26 and the 12 MA are equal. The MACD , that combines several indicators, is worth watching when one or more of the following happens: crossovers (MACD/Signal/Histogram and Zero line), convergences/divergences between price and rapid changes.
During this period the MACD has decreased in divergence with the recent price action. The MACD line crossed below the Signal line (on the 30th) which was a bearish trend in divergence with the price action. The MACD histogram crossed below the Zero line (on the X) which was a bearish trend in divergence with the price action.
I forecast in the next week that the MACD will decrease over the next week and this indicates decrease of price.
References:
Heikin Ashi summary - investopedia.com/trading/heikin-ashi-better-candlestick/
Moving Average summary - investopedia.com/terms/m/movingaverage.asp
Support and Resistance summary - investopedia.com/trading/support-and-resistance-basics/
Bollinger Bands summary - investopedia.com/terms/b/bollingerbands.asp
Fake exchange volume summary - blockchaintransparency.org/
RSI summary - investopedia.com/terms/r/rsi.asp
MACD concise summary - investopedia.com/terms/m/macd.asp
Overall the last 7 days (from the 25th to the 31st of January) were neutral and I am bearish for the next 7 days. After a two month uptrend, and the issuance of the BitConnect Token (BTT), I believe that we will see a significant medium term down trend.
Detailed Summary:
This chart uses daily Heikin Ashi Candlesticks with a custom trend bar indicator, Bollinger Bands, 4 MAs (20, 50, 100 & 200), RSI & MACD.
Heikin Ashi candlesticks are great for trend and swing trading. Heikin Ashi means ‘average’ in Japanese because these candlesticks ‘average out’ price action vs traditional candlesticks that are based on OHLC (Open High Low Close). By averaging out price action this candlestick style reduces ‘noise’ and generates a much smoother chart pattern. This is helpful for trend traders as it is easier to identify the key trend in the market and to ignore smaller price volatility.
During the last week the price has ranged by $.05, opening at $0.26 and closing at $0.26. The price has peaked over the period at 0.31 and the declined but is still in continuation with the long term pattern.
Moving Average are also used on this chart to help identify major areas of S&R and general price trend action. I prefer to use simple Moving Averages on the daily time frame. The 200 MA is red, the 100 MA is orange, the 50 MA is yellow and the 20 MA is green. The choice of colours helps me to read the chart and see if price action is bullish or bearish. For example, if the red is on top and the green is on the bottom, it is clearly bullish. It is also important to note that the longer the Moving Average period, the stronger the support and resistance.
During the last week the price is closest to the 20 Moving Average and during this period it has trended around the 20 Moving Average. The 200 Moving Average is currently acting as resistance while the 50 Moving Average is acting as support. The key Support area is $0.21, 0.18 and 0.13 and key Resistance areas is $0.35. I forecast in the next week that price will test the next support area.
Bollinger Bands are the two blue bands that ‘wrap’ around the security’s price. The top and bottom are two standard deviations away from the Moving Average. If the market becomes more volatile, the bands widen and vice versa. Historically 90% of the price action occurs with the Bollinger Bands, as the price oscillates around an equilibrium. There it helps us identify where the price is in the oscillating cycle so that we can identify entry/exit points and major price changes (on the 10% chance when price breaks through the Bolling Bands).
During the last week the Bollinger Bands have contracted 0.01 by $ from $0.07 to $0.06. The decrease in the Bollinger Bands width was due to decreased price volatility during the last week. The wicks broke through the upper band on 2 daily candles, lower band on 0 daily candles and stayed within the bands on 5 daily candles. I forecast in the next week that the Bollinger Bands will increase and overall trend is bearish.
Volume is a key indicator that I use to understand past, current and possibly future price action. Unfortunately a majority of the exchange volume is fake ‘wash’ trading so it is important to rely on data from reliable exchanges like Binance and BitFinex. Volume that supports price recent action helps strengthen my belief in a specific trend.
During this period volume has decreased in divergence with the recent price action. On a longer term time frame, the volume is below the 20MA volume line. I forecast in the next week that the volume will increase and this will support a decrease of price.
Volume Profile Visible Range (VPVR) indicator show volume by price as a horizontal histogram for the charts visible range. This provides additional insight over traditional volume indicators that are only based on time. By clearly seeing what volume occurred at specific price levels, I can more easily identify key areas of S&R. Two key things to identify are the: POC (Point of Control) which is the price level with the highest volume for a specific period, and the VA (Value Area) which is where 70% of the volume occurred. While VAH (Value Area High) and VAL (Value Area Low) are also worth noting.
During the period the VPVR POC was at 0.28 and the VA occurred between 0.26 and 0.28. Overall, the volume profile is bearish and is in convergence with price action.
The RSI is a popular momentum based oscillator that helps us identify what stage in the security’s oscillation cycle it is most likely at. So after identifying the key market trend we can then apply the RSI to forecast future moves in price action (in terms of velocity and magnitude). This indicator is useful determining entry and exit points, for trend traders like myself, it is used on longer time frames as it is much more reliable. Most of the significant price action occurs around the 30 and 70 areas and ideally what we are looking for is divergence between the price action and the RSI.
During the period the RSI decreased by 9, from 65 to 56 and it is in divergence with the recent price action. It has demonstrated a bearish failure swing is when the RSI rises above 70 (considered overbought), RSI drops back below 70 then RSI rises slightly but remains below 70 (remains below overbought) and finally RSI drops lower than its previous low.
I forecast in the next week that the RSI will decrease and this indicates a decrease of price.
The MACD is a popular trend following momentum indicator that can help identify a security’s momentum, trend direction and duration. is a popular trend momentum indicator that can show us a security's overall trend. The core assumption of this indicator is that a security’s price oscillates around an equilibrium. Therefore by looking at the relationship between different MA calculations, we can identify what specific stage a security maybe of it oscillation cycle. This is why we have two lines, the first is called the MACD (26 - 12 MA) and the second is called a Signal line (9 MA). We also have a Histogram (MACD-Signal Line), which is the 1st thing I look at. Finally there is the Zero line, which is basically when the 26 and the 12 MA are equal. The MACD , that combines several indicators, is worth watching when one or more of the following happens: crossovers (MACD/Signal/Histogram and Zero line), convergences/divergences between price and rapid changes.
During this period the MACD has decreased in divergence with the recent price action. The MACD line crossed below the Signal line (on the 30th) which was a bearish trend in divergence with the price action. The MACD histogram crossed below the Zero line (on the X) which was a bearish trend in divergence with the price action.
I forecast in the next week that the MACD will decrease over the next week and this indicates decrease of price.
References:
Heikin Ashi summary - investopedia.com/trading/heikin-ashi-better-candlestick/
Moving Average summary - investopedia.com/terms/m/movingaverage.asp
Support and Resistance summary - investopedia.com/trading/support-and-resistance-basics/
Bollinger Bands summary - investopedia.com/terms/b/bollingerbands.asp
Fake exchange volume summary - blockchaintransparency.org/
RSI summary - investopedia.com/terms/r/rsi.asp
MACD concise summary - investopedia.com/terms/m/macd.asp
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