Range BoxRange Box Part 4 ( this really is the last video on Range Boxes this weekend ) I wanted to show you a trade that a scalper might have taken.
Boxes
boxesThere are a lot of new followers, and even the old followers need to review of how to draw boxes. Practice makes perfect. Part one.
RANGE BOXES4.4.20 I see that more and more people are following my videos, and I appreciate your interest and hope to provide value. There are certain things you must do for you won't find value from this. You will have a lot of questions when you open up a chart and try to reproduce my range boxes. This is a good thing, and if you persist you will draw these boxes perfectly fine before you know it. The fact that you would draw range boxes is a process that will give you subtle awareness that will benefit you in ways that will become apparent later. The trick is to start drawing the lines and to recognize that they will get better the more you use them.
Using Boxes To Understand Support & Resistance LevelsOn any given time period, you can place a box from a wick and span it across the chart. No interference of a price level usually means that outstanding orders still exist. Thus, buyers or sellers may be present at that level again to fight opposite of the trend since they were just pushing from those levels before.
It's a great gauge to understand how much price will struggle to pass through these distinct zones. For example, since Ethereum is bearish but found buyers at $89, $87, and $84, we can expect some support at these levels. The bigger the wick, the more it will struggle to pass through. This idea on its own does not indicate a bounce, especially because price failed to hold action above these levels. It just means it will fall less quickly in these areas, re-testing these same zones again.
I made the first level green because it should be the easiest zone to pass through; small wick, with small amount of buyers at that wick before price turned over again. The second level is yellow, because the wick is larger and had substantial buyers following that wick's action. The third level is red, because that wick is the largest in the series and had a very large amount of buyer's following it.
on to the next yellow box of ??? Gold still on the bearish trendMy previous "focus" yellow box was beared out "RED RED RED"
now on to the next focus box. keep your eye on 1155 level and the bear/bull fight at the 1172 area.
Trade safely!
Boxes of TrendsWhat I have generally been noticing on the price ticker on my phone is the lack of any big downtrends on the long term trends. For instance, the previous high we made this month happens to have made it all the way up a big chuck of the way. Not characteristic of what we had been in previously (blue box). So, for the moment it is a giant stability period. An equilibrium if you will; not too high (411) not too low (312).
On the frontier, quantitative easing (QE) has ended which may or may not be a good thing for Bitcoin. We will see within the coming weeks and months how we react to that.
Sentiment wise it has actually been much more silent than usual. I use it as a gauge to determine the volume without looking at the charts. It had been more exciting than this earlier. However, things have been calming down since then. In any case, it has gotten a bit too quiet for my comfort. Yet, I just don’t care that much. Buy in, wait, & sell. Sounds like a plan to me.
Indicators
• RSI – Classic RSI, telling me we have gotten just above the turbulent zone for now. I’d like to say it is showing a bullish divergence, but the price was much lower at the time of that low. So, it is inconclusive at the moment.
• ATR – It is looking semi promising to say the least. I have noticed how instead of going up when the price goes down that it now is going up when the price sort of goes up. What this means to mean is that we are in uncertain times. We have all the people who think there is going to be some news that will blast us off and others who think we will just follow the trend.
• PSAR – Has yet to change to a buy signal. Meaning there is a bit more left to this trend or else the price will just continue sideways and PSAR will switch. Either way there is nothing for sure saying we will go up.
Overall, I would say we continue to clip a little bit further down if we have any more push left on the sell side. There is a bit of wiggle room, and I would either like to see my other set of indicators start heading back up or bottom. So close to getter near zero. Lots of potential to the upside and not so much for the down.
Targets
Bull Target: $360
Bear: 318
Extreme Bull: 376
Bloody Bear: 303
On a side note, I find it funny that no one has used stability tag.
