Get started

Btcusdshort

BTC: Bullish and Bearish Divergence Cheat Sheet - Trading 101Almost all forms of technical analysis involve the use of lagging indicators, as they are a great way to find the overall direction of the price action in either the immediate or medium term ahead. There are very few indicators that use any type of leading analysis due to the nature of the market psychology. That is because we don’t know what will happen - we can't predict the future, but we can most definitely try and find a way to understand how the market behaves and make a certain judgment off of this theory. All we can do is interpret what kind of future behavior may occur based on past events – this is the basis of all psychology and significant portions of medicine: we can only predict future behavior by analyzing past behavior. Now, just because most of the tools and theories used in technical analysis are lagging in nature – it doesn’t mean that there is no method of leading analysis. Divergences are one method of turning lagging analysis into leading analysis – it’s not always 100% accurate because of market situations on a daily basis, but divergences can detect anomalies and differences in normal price behavior based on supply and demand of prices. Divergences are useful in identifying when a significant trend may be ending or when a pullback may continue in the prior trend direction. Let’s review some of those now. Divergences are easily one of the most complex components to learn in technical analysis - that's if you are patient and have a good disciplined setup. First, they are challenging to identify when you are starting because we always try to find bias within our trade setup. Second, it can be confusing trying to remember which divergence is which and if you compare highs or lows. It is essential to know those divergences themselves are not sufficient to decide whether or not to take a trade – they help confirm trades, and if you have other indicators that are implying a buy or sell signal, these divergences can increase your trade setup by three folds. When we look for divergences, we are looking for discrepancies between the directions of highs and lows in price against another indicator/oscillator. The RSI is the oscillator used for this lesson. We are going to review two of the main types of divergences: Bullish Divergence - A bullish divergence occurs, generally, at the end of a downtrend. In all forms of bullish divergences, we compare swing lows in price and the oscillator. For a bullish divergence to happen, we should observe price making new lower lows and the oscillator making new higher lows. When bullish divergence occurs, prices will usually rally or consolidate. Bearish Divergence - A bearish divergence is the inverse of a bullish divergence . A bearish divergence occurs near the end of an uptrend and gives a warning that the trend may change. In all forms of bearish divergence, we compare swing highs in price and the oscillator. For a bearish divergence to happen, we should observe price making new higher highs and the oscillator making new lower highs.
BITSTAMP:BTCUSDEducation
by XForceGlobal
5
Why Bitcoin Is Directly Correlated to the Stock MarketHello Traders and Investors. Here I would like to shine some light on why the stock market is now currently the leading indicator (here we use the SNP500) against all commodities, assets, and tradable cryptocurrencies during and post the COVID-19 Crash. Although the Bitcoin market has been showing strength, the general public has been growing eerie about the current stock market situation and all eyes are currently on the SNP500 Index. It's important to note that when Bitcoin and the SNP500 is directly compared to each other from a visual perspective, we can see a strong correlation between the two in terms of price action. We have yet to see the decoupling happen in the near future, but due to the largely correlated price action since the recent COVID-19 crash, the SNP500 has brought down the price of Bitcoin with it, and also bring it up during it's recovery - and if current price action is suggesting that we may be in a correction, we can also assume that no matter how strong Bitcoin is in terms of technicals and fundamentals, we have to play with the market as is. This begs the question, "Where is Bitcoin headed?" We don't know; however, since we are seeing Bitcoin and the SNP500 achieving a historical correlation after the COVID19 Pandemic Crash, we can only assume that Bitcoin will also correct. There is currently a strong divide between two categories of people who trade traditional assets and cryptocurrencies: 1. Cryptocurrency Investors = Bitcoin is currently king and will outpace traditional markets, regardless of what happens - even if the stock market crashes. 2. Traditional Market Investors = We all more or less can agree that the stock market is overdue for a real correction, and Bitcoin will follow. From our observations, we believe the current correlation during this pandemic is more than enough evidence that we have to mostly agree with category #2 - where if traditional markets correct, Bitcoin will also correct. Bitcoin has historically exhibited almost no correlation to traditional assets since the introduction back in 2009, but since the market is now assumed to be as a matured asset class after trading for 10 years on the market, we can slowly assume that there will be more consistent correlations as the timeline grows. The SNP500 is one of the best indicators of how well America's top companies are performing and the valuation of the markets is impacted by many things, including economic trends and geopolitics. In the end, charts are nothing but lines explaining what has happened in the past, but the lines of the past three months may be suggesting to the general public as a fair warning that a correction may be in again for Bitcoin. How far? Only time will tell. One possible explanation for the Bitcoin correlation with the stock market is the amount of people who are attempting to be risk averse as much as possible in times of hardships. For investors who have been offloading their equities, the last thing they want to do is to take their capital and buy Bitcoin again, only to lose it all. Even though interest rates are currently unenthusiastic and inflation is a risk because of quantitative easing, many have been favoring cash. This is why we want to make the point that holding cash is also not a bad thing in times of hardships. Another theory is that the Bitcoin correlation to stocks strengthens whenever this cryptocurrency faces stubborn levels of resistance. One threshold that BTC has repeatedly struggled to smash through over the years is $10,500 – and in the second quarter of 2020, there were a number of failed attempts to crack this price zone, and now it is facing the same resistance once again. It’s also worth keeping in mind that this results in a much directly correlated market between crypto and the stock market. A massive increase or decrease in Bitcoin prices tends to have an effect on hundreds of other alt coins. Many crypto analysts (category #1, as stated above) are hoping for an “uncoupling” that breaks the correlation between Bitcoin and the stock market – meaning that the cryptocurrency treads an independent path and isn’t swayed by macroeconomic factors such as interest rates, inflation and unemployment. Although there have been some similarities in the past few months, the evidence of Bitcoin correlations to the stock market is far from conclusive - this write up is only an observation and not a conclusive test result. Prior to the coronavirus pandemic, when investors were being spooked by the looming threat of a US-China trade war, some developments that suggested tensions between Washington and Beijing were worsening actually appeared to help Bitcoin surge. As we can see, this is a perfect example of why we may not currently understand the real historical correlation we are having with Bitcoin at the moment. This leads up to our next point - Diversification. There’s a reason why Bitcoin correlations matter: diversification. Pro investors often try to invest in a multitude of equities and financial instruments that aren’t influenced by the same factors, helping to mitigate losses in the event of a downturn, also known as hedging the market. If crypto and the stock markets rise and fall in tandem with one another, this could create unwelcome exposure for a poorly balanced portfolio. But with Bitcoin currently facing similarities to the US stock market, Bitcoin for the past few months can be considered by many a lucky draw since it recovered similarly to the SNP500. When it comes to Bitcoin and the stock market, some experts also believe that the correlation will inevitably increase in the years to come. We believe this will happen as well as previously stated above, the market has been trading for almost a decade and is now known to the general public. The cryptocurrency market is doing its best to keep its clear distinction as a unique asset class by offering new forms of phases in technology (ICO phase, DEFI phase, and so forth). It’s a well known fact that institutional investors are intrigued by Bitcoin – and through the rollout of derivatives such as futures and options from 2018, it is becoming increasingly possible for people to acquire cryptocurrencies for the first time. Some experts believe that maturity in the crypto markets will only serve to strengthen the bond with stocks. As a final conclusion, we would like to conclude on one question: Will the stock market crash? Assuming that there is a Bitcoin correlation with stocks, here’s the main piece of advice I would love to give to our users: Gaining intelligence about any stock correlation can help you make your decision about positioning in the market. Bitcoin has been one of the best introductions to mankind since sliced bread. Some analysts fear that a bubble is about to burst – especially in indices such as the Nasdaq 100, which has recovered all its losses and actually reached a new record high even as COVID-19 cases in the US continue to rise with anger. The uncomfortable question now is if, and when, such a crash would occur. It could be weeks. It could be months, even years. Correlations with the stock market come and go, but COVID-19 remains a massive unknown that could affect Bitcoin just as much as the S&P 500. BTC has been trading within an incredibly odd trading range, meaning it’s rapidly becoming a spring that is coiled up and ready to burst any moment. Irrespective of whether it moves upwards or downwards, the jump is set to be a big one. Trade Safe. X Force
BITSTAMP:BTCUSDEducation
by XForceGlobal
7
The difference - Double Top & Head and ShouldersHello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** What Is Double Top and Bottom? Double top and bottom patterns are chart patterns that occur when the underlying investment moves in a similar pattern to the letter "W" (double bottom) or "M" (double top). Double top and bottom analysis is used in technical analysis to explain movements in a security or other investment, and can be used as part of a trading strategy to exploit recurring patterns. $$$ What Is a Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.
BITSTAMP:BTCUSDEducation
by Saeed966
8
Ascending Channel & Descending ChannelHello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** One of the best methods of technical analysis at the beginning is to know the direction where it is heading Including the ascending channel and the descending channel pattern When drawing an ascending or descending channel, the tops of the bottoms are greater than the peaks and bottoms behind them, and usually there are three peaks or troughs, and then the break comes after To properly draw the pattern, link the tops and bottoms of each other so that the pattern is formed This in a nutshell
BITSTAMP:BTCUSDEducation
by Saeed966
10
BTC: How to Trade BTC Right Now - Smart and Disciplined StrategyHere we would like to suggest to you a breakout strategy that we know that can bring guaranteed profits for any trader. This is the most safest strategy that bring the highest rewards, lower risk, and still expose you to the market in a time of volatility. First things first, making a position with zero discipline is a recipe for disaster. We all would like to take a position right now and hope that it will go the anticipated direction of our long or short. No one knows where the market will be heading to, and although the market is in a considerably bullish state, it doesn't mean that it will just shoot straight (although we love for it too!). The best possible way to approach the current rising wedge we are seeing at the moment, is to make sure and buy or sell on the BREAKOUT. The breakout doesn't mean, "it's breaking out, I should get in!". It's simply, a retest of the breakout. A retest of the breakout almost ALWAYS occurs unless there is some kind of anomaly in price action (impulse wave) - but even this, is always followed up with some form of follow up pullback. Another interesting thing is we are trading below the legacy trendline from the log chart on the daily: Please let us know, are you bullish or bearish?!
BITSTAMP:BTCUSDEducation
by XForceGlobal
10
BTC: Market Cycle Psychology - Where Are We on the Timeline?Bitcoin is currently at crossroads for the adjusted market cycle psychology theory. As we were not able to secure 12K, it seems like the bears have taken control for the short term; however, Bitcoin is argued by many that we may be on to new highs. Keeping in mind with our incredible recovery from the COVID19 crash, is this merely a bull trap? We have seen a 200%+ return within a short amount of time and we are not too sure if this trend will continue. If Bitcoin is able to keep this recovery rate going, we will need an incredible amount of volume and power not only from large institutions, but the general public on a global scale - but we aren't seeing any evidence for that when we pull up the Google Trends keyword, "Bitcoin." We continuously see smaller bull and bear cycles within on our timeline, which can be a good or bad thing. With that being said, our continued advice for all traders is to wait for the clear break down or breakout to the upside. For all we know, we may be increasingly on a sideways cycle which may suggest further evidence for the lengthening market cycle theory. We would love to know your thoughts in the comments below! Trade Safe. X Force.
BITSTAMP:BTCUSDEducation
by XForceGlobal
8
The Only Trading Strategy You Will Ever Need - How to Trade!Here is a clear representation of the X Force trading strategy that requires only one thing from every trader out there: discipline. Now, the most important question that new traders entering the market is, "when should I buy?" If you look at Bitcoin, or even the NASDAQ, Dow Jones Industrial Average, you will note that all of these charts have one thing in common when looked on the monthly time frame: it's a never ending BULL market. As a human, we all have emotions attached to the market which in return creates the whole market psychology of trading - this is why we as humans love trying to maximize what we have in our pockets by trying to trade the small swings from day to day. With that being said, we have simplified trading into the most simplified, easy strategy that even the most advanced traders can take note of this. The market cycle is simply divided into three phases: 1. Bull market - In the bull market, you want to of course be in a position if you are considering spot buying. We never recommend leveraged to a rookie trader. 2. Neutral (consolidation) - This is considered an accumulation phase where buyers and sellers will try to establish common grounds for price, most notably at previous resistance turned support. 3. Bear market - The most unruly of all and is emotionally factored in most, if not all trades. A bear trend is usually followed by a blowoff top after a bull market. A lot of external factors and catalysts such as a global recession or strong driven news will take into play for a bull market. While Bitcoin is now about to retest certain levels of resistance, it's important that this may be a time to buy if you are a swing trader, and enter upon another breakout in preparation for a new bull market cycle. In the case of a failed break, this can just be another continuation of the consolidation phase we have mentioned and drawn above in our charts. Trade Safe. X Force.
BITSTAMP:BTCUSDEducation
by XForceGlobal
Bitcoin (BTC) vs. US Dollar Index (DXY) - BTC Drop Incoming?X Force provides quality content provided by experienced traders who would like to make charting more simple for the general public. If you love our content, please make sure to give us a 'like', we would highly appreciate it! The US Dollar and Bitcoin price correlation is almost sinisterly close to each other when we count the bull and bear runs from the years 2017-2018. Bitcoin and the US dollar has been almost playing opposite of each other, where if one rises higher, the other goes lower, and vice versa when we see opposite price action occurring simultaneously. We have drawn a clear map of what we have observed from those years and why the US dollar might be potentially seeing a bounce from current levels (or slightly lower) and also see a retrace for Bitcoin. In addition, this can be a rather healthy thing for Bitcoin to do once we see the retrace occur because we still have a void at 9.7K for the CME Gap. There are a few things to consider when we look at Bitcoin's price action. For example, one of the most important visual observations we can make at the time of writing is that Bitcoin is heavily diverted away from the US dollar price. We are seeing a massive drop in the US dollar possibly due to many geopolitical factors such as the presidential elections, COVID 19, and many more issues. As the US dollar is heavily sensitive to price action since it is a global currency, Bitcoin has more or less remained as a store of value asset for many - and profit taking is always going to take place at crucial levels. Another factor that we have to keep in mind on why we might see Bitcoin retrace from current or slightly higher levels, is that the US dollar has always historically been great at respecting major support levels. Technical reasoning behind the above chart: 1. From the years 2017-2018, we have seen Bitcoin rise parabolically, and the US dollar to drop. 2. From the years 2018-2020, we have seen Bitcoin do small cycles of bear and bull runs, while the US dollar remained a steady rise (this can be known as the consolidation phase). 3. The COVID19 crash has essentially made the US dollar rise incredibly fast, while the Bitcoin's price dropped massively. 4. The current bull run on Bitcoin is now making the US dollar value go down. What we can speculate: Bitcoin may be very close to seeing a retrace due to the US dollar dropping rapidly fast. We would assume that since the US dollar index has been respecting minor and major support levels, we would assume that Bitcoin's price would also retrace as the US dollar rises temporarily. We also believe that in conjunction with our previous theory on CME Gaps, we believe BTC has one more opportunity to fill the void at 9.7K, where the CME gap still remains unfilled. Here is a previous editor's choice post that we have done on CME gaps, and why we think the CME gap might fill:
TVC:DXYEducation
by XForceGlobal
14
Bitcoin: Two Possible Scenarios Simplified (How To Trade)X Force provides quality content provided by experienced traders who would like to make charting more simple for the general public. If you love our content, please make sure to give us a 'like', we would highly appreciate it. Bitcoin is currently painting two different possible scenarios and we would like to break down both the bullish and bearish case via easy technical patterns that everyone can understand. Bullish Ascending Triangle: - Bullish ascending triangle usually means Bitcoin might be in a continuation pattern and continue a measured move up to newer highs. - The pattern completes itself when price breaks out of the triangle in the direction of the overall trend. - This pattern indicates that buyers are more aggressive than sellers as price continues to make higher lows. - A breakout and retest of the upper trend line is considered a BUY signal by bulls. Bearish Rising (Parallel) Channel: - An upward Price channel pattern occurs when the price makes a series of lower lows followed by a series of lower highs. Typically the price should be contained inside the lines that connect these highs and lows. - This is usually considered a consolidation phase and pressure will be put on top of the channel by sellers, and buyers on the lower. - A Rising Parallel Channel usually leads to a breakdown, which is considered the SELL signal. Trade Safe. X Force.
BITSTAMP:BTCUSDEducation
by XForceGlobal
Bitcoin: Understanding CME Gaps - A Full Perspective and GuideX Force Global Analysis: If you find our analysis to be helpful, make sure to support us by dropping a ‘like’ ------ In this analysis, we take a look at Bitcoin's rather peculiar tendency to fill CME gaps. What are CME gaps, and why do they occur? First of all, Bitcoin does not trade 24/7 on one specific market, which is the CME market. This means that at a certain point in the day, the market closes and trading stops altogether - just like in traditional stock markets. When looking at these CME gaps, an investor might conclude that they will be filled quickly within the next few days. And based on this reason alone, many traders will take a long or short position based on the gaps produced. If a gap is produced while price is moving up rapidly, a trader might conclude on taking a short position with the notion that the gap will eventually fill. While this is fundamentally true and a good trade setup because gaps have traditionally filled 100% of the time via Bitcoin's history, it can be still dangerous if the trader does not know how to execute the trade properly, especially if the trader is in a leveraged position. A basic understanding of major trend shifts, then taking CME gaps into the trader's strategy is a recipe for success. From a technical stand point, when a gap appears within the charts, it removes the immediate support or resistance and creates the tendency for most traders to notice this, which may be the reason why the new tradition of 'gap filling' has been a part of Bitcoin's price action since the introduction of the CME market. Either way, if price action moves further away from the gap, the higher probability of a stronger drop/pump will be, which may or may be bad for both bulls and bears. For our viewers sake, we have done the calculations to show 2019's high to current price on how long it has taken to fill. The average has been 63 days. Will Bitcoin's CME gap be filled before we reach new highs? Or will we see the gap fill, then run towards new highs? We leave that up to you. How to trade CME Gaps? Trading CME Gaps can be very tricky, especially if you take a position too early. As we have stated earlier, all of Bitcoin's CME gaps have been filled 100% of the time. This current gap we are seeing may be no different. It's a matter of WHEN, not IF. With that being said, the best possible way to trade this is to understand basic support and resistances. We are currently facing strong resistance at 12K, and if broken, we face the possibility of a longer wait time for the gap to be filled. This can be a good or bad thing: Good: BTC will be breaking major legacy resistances, and show sign of growth in the immediate future. Bad: BTC will be further deviated away from the current CME gap below major psychological resistance at 10K, and may further put bulls in disparity once the gap does fill. Bitcoin has retested major trend support technically twice, and it may desirable to retest it a third time before we can show true strength in BTC's trend. This can mean a longer accumulation phase and an possible impulse waves that will make Bitcoin's drop more severe based on our CME gap theory. Trade Safe. X Force.
Editors' picks
BITSTAMP:BTCUSDEducation
by XForceGlobal
42
BITCOIN Fibonacci So the impulse move acts as if it's taking a big breath in, and then the retracement is the breath out. This collection of impulses and retracements then leads to higher highs etc.. all being formed, creating our trend. In this case it is the retracements we are concerned with, and Fibonacci is a tool used to figure out areas in the market where price may stall or retrace to before continuing its course. It can be seen as a sort of support and resistance. It is based on 'the golden numbers' that are seen in all of the universe, not just in forex. These numbers are ranging from 0-1; 0, 0.236, 0.382, 0.5, 0.618, 0.786,1. So we are looking for a key level at which we think price will reach before continuing a new impulse. Fib is a pretty simple tool to apply to your chart. Depending on what way the market is trending, will depend on where you drag your tool from. So If we are in an uptrend like above, are are going to drag our fib tool from one Low to the next High. So when you drag the tool, the fib levels will appear. Now we don't know what level it will definitely bounce off of, but it gives us a clue as to the likely possibilities. Certain currency pairs will favour certain levels. You may find that the 61.8 and the 78.6 levels are good places to look, and currencies will favour these to rebound off more so than the other numbers. An institutional level is the 79.0 level and is not found on a normal default Fibonacci. You can edit the numbers in your fib by selecting settings and adding in the 79.0. This can give really accurate entries if used correctly along with other confirmations. INSTITUTIONAL - institutional is a style in which the banks and market makers trade. I learn a lot from my mentor!
COINBASE:BTCUSDEducation
by Bearishness
W bottom BTCUSD SHORT We have yet another W bottom; certainly a common theme in the hundred and dozen or so publications I’ve done this far. Frustratingly trying to deal with this glitch that’s slicing my publications and rap as well as followers and all that stuff into two different accounts also preventing me from intraday trading on my pro account ironically so while they get sorted out (Check my chainl link publication for more info - Case anyone wondering why I feel the need to mention this is strictly due to the four or five people that actually read my publicationsCase anyone wondering why I feel the need to mention this is strictly due to the four or five people that actually read my publications so I did not want them to feel like I have been in them so rest easy loyal friends —- did not want them to feel like I have abandoned them, more like a temporary sabbatical while I sort this issue out. In the meantime I would implore you to check my Twitter/Linkdeln for any updates. I take it in this matter will be resolved within the week. W bottom signaling parabolic movement and time frame shows the short position I would take for anyone looking to dump before retracement and as always read horizontal represents the stop loss which is the figure you should always go for— Regardless of how bullish you believe the market is. Trade safely have a wonderful day and DM me if you have any questions or concerns. Happy birthday to my brother/best friend, Adam! Ll Peace & Love -@a1mTarabichi Disclaimer Market is extremely volatile so please keep that in mind do not FOMO or FUD and this is not financial advice. - Note: My main account just like all my other handles I. E. Twitter/ Linkdeln (among others) Is – a1MTARABICHI The glitch/duplicate account is identical just minus the M & 1 so “atarabichi” And so just pay attention to the same one that I’ve always been posting on there and that is the main one (Also the only one with the pro green badge) Hopefully does not cause too much confusion and will be fixed sooner rather than later Have a great evening once again -mT
BEducation
by UnknownUnicorn1445512
MAJOR TOOL YOU MUST HAVE IN YOUR TRADING TOOL BOX!COINBASE:BTCUSD SUPPORT AND RESISTANCE COVERED! It is so important that you understand support and resistance. It may seem so basic but this alone can make you consistent profits. Understanding where the market may pivot is an edge you simply can not afford to not have in your technical plan. If you have any questions or comments, leave them down below and i will get back to you! want a topic covered? let me know in the comments.
COINBASE:BTCUSDEducation
by Malika_Analysis
BITCOIN WHALES PUMP STRATEGY Exposed using this Indicator!ThunderLight indicator is used to catch accumulation from Whales and their entry points (hidden supplies and demands) before they pump or dump the index (forex, crypto, stocks). The trader can't see Whales accumulation on the normal market, but ThunderLight indicator exactly can track and detect before pump or dump happens. So the trader can't be manipulated by Whales, more and more. To use ThunderLight indicator it very simple and easy. members only needs to look carefully with spikes from the indicator. - if ThunderLight showing spike above 1 = it means "Strong Accumulation" for the pump, - if ThunderLight showing spike above 2 = it means "Very Strong Accumulation" for the pump. Note: ThunderLight's impact of every timeframes are different, the more bigger timeframe, more big impact for the pump, if the spikes are under 1 it means no accumulation more. correction is coming. on this example image above, if we zoom in, we can see ThunderLight has detected exactly whales entry point and then it goes pump +11.98% on this another example image above, ThunderLight has detected pretty big whales accumulation that affect big impact on ENJ coin pump for more information about this Indicator, feel free to send me a message. thank's a lot :)
COINBASE:BTCUSDEducation
by deSteyns
75
BTCUSD - New THE WALL swingHello Traders, As of few minutes ago US President declare National Emergency to build the Wall. Then I would like to declare new swing pattern call The Wall. Red diagonal line marking The Wall formation. This is the swing where corrections are less then 25% - very strong continues price move. Low and High of the Wall Swing are very strong support and resistance. We have significant important level which is 50% of that swing - this is balance Level between Bulls and Bears. As you can see price for long period of time remain above 50% of The Wall Swing. This is very important information that momentum remains strong to the upper side - Bulls remain in Power! The Wall Swing can be mark on price chart as well as on oscillator chart. I hope you enjoy new pattern. Cheers, Jim check in "Like Button"
BITFINEX:BTCUSDEducation
by jimmycdn
$BTC - #BTCUSD Quick trade - Day Trader ExplainsHello lads and ladies, I will be on a business trip in the next few days, which is why I will most likely not be able to upload the daily updates until Saturday. Nevertheless, I am leaving you with a way that I like analysing and basing on trades on smaller timeframes. Find a trend, look when the trend breaks, confirm it with indicators and then trade the break down or break out!! Cheers, TJ PS let me know in the comments which trades you have taken based on this strategy and how they worked out in the few days that I am off.
BITMEX:BTCUSD.PEducation
by KongTrading
1
BTCUSD Types of false breakdownsFALSE BREAKOUTS, BULLISH AND BEARISH TRAPS FALSE LEVELS BREAKOUT: TRADE, KINDS, PATTERNS Trading strategies using key support / resistance levels are among the most popular and often used in trading practice by most traders. However, behind the seeming simplicity of the trade of the rebound from levels, and their breakdown lies a lot of nuances, which are often the cause of an unsuccessful trade deal. One of them is a false breakdown of levels, which cannot be identified correctly identify on the chart by all traders. It is the trade of false breakdowns that leads in most cases to incorrect entry into the market. To minimize the risk of trading levels, let us study the concept of "false level breakdown", the logic of their formation, types and how to avoid mistakes in trading levels. So, a false breakdown is a situation where the price of the traded asset breaks the level, but it cannot gain a foothold above or below it and comes back. Schematically, this pattern and pattern are shown below. They are often called “bullish or bearish trap” in literature. You can come across them quite often in the upward and downward tendency, in consolidation, in figures of the graphic analysis on statistic and dynamic (movings) level. LOGIC OF FORMING FALSE BREAKDOWN At the heart of this price behavior there are two mechanisms. 1.The lack of demand or supply on the market. In this case, the price is actively moving to an important price level, but as we approach it, the size of bars (candles) begins to decrease, and volumes - begin to decline. This means that at these levels, the demand for the asset falls sharply due to a decrease in the volume of the traded asset or unwillingness of traders to buy / sell the asset at a too high / low price. And the output of prices beyond the important level (false breakdown) has no chance of continuation. In this situation, most often the market goes into a flat state. 2. Getting the position by a marketmaker / specialist due to small traders. As you know, when the price moves up / down, the marketmaker takes the opposite position, that is, he provides liquidity to the asset. When the important price level is reached, the activity of the participants decreases and the demand / supply falls. The marketmaker, in order to close its existing position and turn, needs to collect an asset at the prevailing price. Not being able to place his applications for the purchase / sale of an asset at one time, he performs manipulations (actions contrary to his intentions), provoking the “crowd” to sell / buy a trading instrument, that is, create additional supply / demand in this area. For this, he makes a false move beyond the boundaries of the resistance / support zone and most small traders, following the logic, buy / sell an asset to a marketmaker. Having gained a necessary volume and closed the current position, the maketmaker starts moving to the opposite side, and the crows loses money. It is a false breakdown, most often used by a marketmaker for these purposes. In this variant, the price is suitable and breaks the level with large-size bars and high volumes, but after the breakdown volumes fall sharply. This indicates the activity of market participants and requires knowledge of patterns for identifying false moving. TYPES AND VARIANTS OF FALSE BREAKOUT False breakout patterns can be different: single (puncture), double or multibar (tampering). Instant breakdown - the price makes a sharp move out of the channel by one bar / candle (puncture) and comes back, while the bar / candle closes below the resistance level and above the support level. Such a candle should have a high volume and a long upper shadow (pin bar). Breakdown of the level by two bars with the closing of the first step above the resistance level (fastening above the level), and the second - its return and closing under the support level and, conversely, for the support level. It is very important here that the volume of the candle return is greater than the volume of the candle penetration. Breakdown of the level with subsequent tampering over / under it (trade in a narrow range), return back. Here, the largest volume should have a candle breaking through the level and a return candle. On the chart, it looks like this: TRADING OF FALSE BREAKDOWNS: It is impossible to formalize all the rules for trading a false breakdown in a short article, but only the most important ones. First, the trading algorithm: •Never enter the market until the breakdown candle is completely formed (closed), ideally - it is not worth to enter the market at all in general. The beginning traders do this mistakenly as they emotionally react to the breakdown and are afraid to miss the move. It is necessary to make a decision after the formation of the next or several subsequent candles, depending on the type of the forming breakout pattern and the market context. Many traders take the sharply increased volume for a breakdown candle as a basis. But the reason for this phenomenon can be not only the entrance of new buyers, but also the banal demolition of stops, which is especially common in the breakdown of levels (boundaries) of price channels. Below is a schematic diagram of the algorithm for entering the market after the completion of the formation of false breakdown patterns. • after breaking through a strong level, carefully analyze the forming patterns, among them, often form reversal, which can tell you a lot about the current situation. The figure below, as an example, shows the situation on the chart with a false breakdown and several signals for a spread Always be very attentive: if the price matches the strong level the marketmaker will probably provoke the next false breakdown. And do not forget that level breakdowns including the false ones often happen as a result of strong news. And the last one, some traders avoid trading of such moves. This is completely in vain, since the trader loses the chance to enter into a deal at the best price with a small stop which allows to reduce the risk and easier to keep an open trading position.
BITFINEX:BTCUSDEducation
by EXCAVO
45
2 weeks BTC analysis After few analysis i decided one of the best timeframe to spot the primary trend and reversal for BTC is the 2 weeks timeframe. The 1 month timeframe is too high as the asset is too young and it wouldn't be sensitive enough to give us reliable signals of reversals top and bottoms. Certainly there are many similarities between 2014 and 2018 but we always need to bear in mind that the asset is really young and compare the assets later in the trend with their behaviour at their birth is not always ideal, as many factor can affect the market right now that are completely different from back then. with the first one being the type of investor in the market, their mind and psychology. As you can see from my analysis we can appreciate how the indicators have been reliable and quick to signal tops, bottoms and supports. Also WMA has been a good dynamic support. In 2014 BTC formed a "bull flag" culminating in an accumulation phase. the record volume showed after the accumulation sign the start of the next bull trend. Similarly and as expected BTC has formed another bullish pattern "bull pennant". The volume has started to expand which is typical during accumulation phases. I expect the accumulation phase to end November - December and the new bull run to start in January 2019. The range will be between 7k and 6350 - 6150. Bear in mind that the trendline will provide support in any move below the market structure. ROC showing a new support, similarly to 2014. In bull trend (primary trend) the indicators range on the north side and the ROC indicators is starting to migrate north again after the last parabolic blow off, typical mega overbought condition during the first phase of a young rising bull market. I'll keep my eyes open for any reversal sign and confirmation. Educational purpose only
BITFINEX:BTCUSDEducation
by CFcryptoTA
An analysis of current and past price action.For the very first time, the amateur shows two different perspectives on BTC. The chart on the left is the current daily chart for BTC. The chart on the right is the daily chart from back in June 2017. There is one massive similarity between these two, a fractal, outlined by the corresponding numbers on either chart. The left shows different trend lines I have drawn ranging from very slow/organic growth, to parabolic growth. There is a massive range BTC could hit by 2019, between $2,950 and $176,000.00. If we break upwards of $100k+ however, I can't see $176,000 being the top. My money is on $63k+. If you check out the RSI, it's very clear we are possibly starting a parabolic trend. Every single time frame is overbought, minus the weekly and monthly. On July 17th, the 4H RSI hit 90.3473, and we are STILL CLIMBING. The last time the 4H RSI has been seen like this, was on 6/12/2016, over TWO YEARS AGO. We just had 6 green daily candles in a row. This hasn't happened since November 30th, 2017. Prior to that, May 31st, 2017. Weekly MACD is about 1 or 2 weeks away from crossing bullish. Gee, what a convenient timing for the ETF to be approved/disapproved.. Weekly volume is already HALF of what it was last week, in just one day. www.tradingview.com Oh and did I mention, we D E S T R O Y E D the insane downtrend resistance from January 20th, that's held us from breaking $12k+? Oh and did I mention, the M A S S I V E bullish divergence that has been showing on the daily for some time now? Big players in this market are moving it for a reason. Prepare your moon suits bois. My name is MC_Peewee, but you can call me teh Salesman.
BITFINEX:BTCUSDEducation
by deactivatedaccount123
45