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BTCUSD H4/D1 charts (2/15/2019)Good morning, traders. Price is attempting to push its way through the descending wedge's resistance as H4 RSI is pushing through its own resistance. H4 MACD is curled up and nearing a bullish cross above centerline. As we can see, the green target, which is based on the height of the wedge, is near the previous swing high. Traders need to be cautious as price nears that area. A close above that swing high is what is needed. A wick above but close below prints a bearish SFP which will likely have price reversing. However, a close above that swing high opens up the targets I discussed yesterday as price begins closing above the pattern resistances. While anything is possible at all times, there is little-to-no reason to think price is ultimately headed down from here at this time. At the very least, we should see price move up toward $3900. A daily close above $3615 should make this much more likely as that gets price back above the daily pivot. I am still not a big fan of the possible IHS but have left it for those of you who are interested in it. BTCUSD Shorts may be finding a temporary bottom at the very least. More importantly, they are nearing the area where they have previously bounced and price headed down as a result. Just because it has happened before does not mean it will continue to happen, though, but it is something to keep an eye on. If Shorts happen to drop below that level this time around it may be an indication that the market is reversing. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
2
BTCUSD H4/D1 charts (2/14/2019)Good morning, traders. Price continues to consolidate within a flag/descending wedge. The target based on the height of the wedge remains, as it was yesterday, the ascending red "neckline" of the possible IHS. But, as I mentioned previously, we need to see increasing candle spread and expanding volume as the right shoulder is completed and price pushes through the neckline. If we see diminishing volume and/or small candle spread then the possibility of further movement up through the descending channel's resistance is significantly reduced. But we do have a few targets if demand shows itself. The shallowest target of $3730 will get price to the red line and is based on the height of the local wedge, $3970 is based on the height of the flagpole, $4100 is based on the IHS, and $4400 is based on the height of the large descending channel. A breakdown of this wedge has price looking for initial support around $3475-$3510 with secondary support around $3430. Currently, price has retraced almost 50% of the February 8th advance. H4 RSI continues to move within the descending broadening wedge it printed, but appears to be finding a possible floor as it flattens out around 45-50. MACD is also showing growing bullish momentum over the past two days. D1 shows price just below the daily pivot with decreasing volume the past three days and doji candles printing. This suggests that supply may be exhausting itself and, if so, we should see price move upward as demand takes over. Until it happens, however, this is just speculation. Traders should always look for confirmation of direction via pattern completions or breakdowns at the very least. The short green horizontal lines on the D1 chart mark the aforementioned targets. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
3
BTCUSD H4/D1 charts (2/13/2019)Good morning, traders. Price hit the red target yesterday and was $20 shy of the pink target. Other than that, it has continued to move sideways within a possible flag. However, generally, the longer this is drawn out the less bullish it is. That being said, there was a 9% drop in Bitfinex short interest in just over an hour earlier this morning prior to the U.S. open (most of it happened within 20 minutes suggesting that it was possibly a single entity unwinding). There was a simultaneous 3% drop in Bitfinex long interest (most of it happened within 5 minutes suggesting a single entity). In terms of actual numbers, shorts closed out about 2500 positions while longs closed out only 1000, causing the longs/shorts ratio to pop. There was no corresponding strong movement in price in either direction at the time but price has been moving up gradually since then. Generally, a significant drop in short interest like this means that price is expected to rise. The lesser the short pressure the easier it is for price to do so. Why did it happen this morning? We can only speculate, but there is the possibility that because the bears have not been able to push price back down, in spite of the dumps since the February 8th advance, larger position holders are cautious that price may advance more in the short term. There are a few people running around talking about a possible IHS on the H4. I have labeled it for you, but I'm not necessarily a fan of the idea. If it is, then there is the possibility that we could see a move down to $3500 before completion of the right shoulder. The neckline is denoted by the ascending red resistance line. If you've been following me for any length of time, you know that I am not a big fan of H&S or IHS patterns, but in this case volume has been expanding in what would be the right shoulder (as we expect in this pattern) which means we can't automatically discount it. Price is finding support around the 21 EMA, at the bottom of the local TR. I have readjusted the descending channel/flag to compensate for yesterday's spike in price and the target based on the height of the channel/descending wedge would be around the neckline of the proposed IHS. RSI continues to print a descending wedge and has found support, so far, as the previous symmetrical triangle's resistance. Price is also printing a possible ascending channel which should have traders cautious about a possible double top forming around $3700. D1 shows yesterday's increasing volume resulting in a long-legged doji, just below the daily pivot, underscoring the strength of the current battle between bulls and bears at the $3500-$3700 level. Today's candle is currently signalling more of the same. We can see rising volume since mid-January but less follow through from the bears. Does this signal a shift in sentiment and a reversal of price? We can't tell yet, but it is something that all traders should be watching. High levels of effort resulting in less result often indicate that reversal, and that's currently what we are seeing. Yes, ultimately volume is still decreasing, but at a much slower rate than it has been, hence the need to watch the current volume advancement for follow through and continued increase. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
BTCUSD H1/D1 charts (2/12/2019)Good morning, traders. Price has continued within the flag and bounced off the 38.2% retracement on the D1 chart as I mentioned I was watching for yesterday. H1 is printing a short-term double bottom with a target of $3620, once price closes above the swing high of $3586 which would confirm it. H1 RSI is just under neutral at 47.3 and butting up against resistance, while H4 RSI has finally retreated to 52 as it bounced off the previous resistance area and is printing a descending broadening wedge, suggesting price may be readying itself to resume its upward momentum soon (as long as it holds). D1 RSI is holding bullishly around 52 while retesting resistance as support at this time as well. Price is sitting on the H4 21 EMA and just below the 21 EMA on the H1 while volume has been picking up in this area. This also puts price just below the daily pivot, so we need to see D1 price closing above that pivot to signal continued bullishness, though I really want to see price closing above the D1 TR's EQ of $3645. The more convincingly price can close above that level, the more bullish it becomes. However, if this level does not hold, I will be looking for the $3450/70 area to provide support. The pattern-based targets remain valid at this time. Ultimately, I am watching price within the pink descending broadening wedge. A move through the wedge's resistance provides a target above the flag's resistance which signals increasingly bullish likeliness if price can follow through beyond that target. That target happens to align with the D1 TR's EQ. However, a drop through the wedge's support signals, at the least, a test of the bottom of the local flag/EQ of the D1 descending channel. I see a lot of traders forcing entries right now. Don't. You should be waiting for price action to tell you which way to trade, not enter just to be in the market. The latter is the easiest way to lose money right after FOMO. BTCUSD longs and shorts are currently rising as a result. Volatility has also dropped off after the surge in action four days ago. Visible orders across the major spot exchanges and Bitmex show dominant demand right now which is a good sign if we can see an influx of buying. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
1
BTCUSD H1/D1 charts (2/11/2019)Good morning, traders. Demand continued to flow into the pair over the weekend with supply attempting to assert itself yesterday. Up looks much more likely than down, in the near term at least. The D1 chart shows price sitting on the daily pivot after being rejected around the 50% retracement of the December 15th low to the December 24th high, but we could see it retreat as far as the 38.2% level before heading up. The target for the break of the green descending wedge is around the 61.8% retracement, as shown, which is also the descending channel's resistance. Currently, price is printing a pennant/flag, and if that breaks bullishly then the target would be the 78.6% retracement based on the height of the flagpole. This takes price through the descending channel's and symmetrical triangle's resistances leaving targets of the R4 pivot around $4380-$4420 and upper supply zone around $5200, respectively. However, in reaching this latter target, price would necessarily move bullishly out of the large descending wedge which has been printing since the ATH and signal a target of $14,000+. Be aware that absolutely none of that is guaranteed. What we are looking at is pattern-based targets that only become active once price leaves the pattern. Traders should be watching the previous swing highs at all times because a failure of price to close above them signals weakness. H1 RSI appears to have found a bottom, so traders should be watching for a push through its resistance. Price's move through its own resistance should have it targeting the top of the local TR and flag/pennant resistance. As shown, a bullish push through that resistance should set a target near the top of the descending channel at around $3780. So we have multiple targets based on multiple TFs and patterns for traders to choose from depending on what TF they are able to trade and their level of risk aversion. Obviously, a breakdown of price below the local TR support should have traders cautious about a possible move to the bottom of the flag/EQ of the large descending channel. Failure of that area to support price opens up a possible move to the bottom of the descending channel. D3 RSI is sitting bearish at 40, and has been ranging for almost two months, but another strong move up would rectify that for the bulls. Last week's W1 candle printed strong bullish engulfing as well as tweezer bottoms, which should signal further upward momentum. Weekly RSI is sitting at 36.5 and, like the D3 RSI, has been ranging for almost two months but is nearing its descending channel resistance. Looking objectively at the W1 chart, it appears that an accumulation TR may be developing with an expected move toward $4300-$4400 which aligns with the D1 descending channel's pattern target. Failure of price to continue upward from there, through the ATH resistance line would signal an expected move back to the bottom of the TR to print an ST in Phase B as I have discussed previously in multiple daily live streams. However, based on the structure of the larger patterns and the current TR, if it is accumulation and price follows this path back down then it becomes increasingly likely that traders may not see the Spring they all are waiting on. Rather, the pair could just print an LPS due to significant demand in the $3000-$3500 area. If so, then we could realistically see price above $6000 by the end of Q2. A February close above $3693.85 would print the first higher monthly close since July 2018 (which is the only higher monthly close we've seen since the ATH). All this being as it is, there is also the chance that we could see a continued move up into the $6000s from where price currently sits as well. Accumulation doesn't just happen horizontally, though most of the time that is the case. So be careful of anyone promising you that price MUST do something particular. If you think you are going to "catch the bottom," be realistic and understand that there is very little chance of you doing so (and if you do it will result from luck, rather than skill). Understanding what is happening with price action and committing to buying near the bottom will be a lot more effective in the long run, but that also means that you most cannot jump in with 50%-100% leverage. The fact is, you will not get rich overnight and the more you attempt to do so the more likely you are to lose everything. Of course price could also always head lower, beyond the 2018 low, as well. While this seems increasingly unlikely, the potential for it to do so remains as long as price sits below $6500. A close below the daily S1 pivot, especially on the D3 chart, is what I would be watching for in regards to a possible move down and resumption of accumulation below $3000. Otherwise, any price move below that level, especially after a move up to $4300 first, would most likely be nothing more than the ST and Spring which indicates a move back up to the top of the blue TR in both cases. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
BTCUSD H4/D1 charts (2/8/2019)Good morning, traders. Price action just got interesting this morning. H4 and D1 RSI are breaking bullishly through their resistance and volume has picked up noticeably. As a matter of fact, H4 RSI is now bullish at 56. Obviously we need to see follow through, and there is still another 2 hours left in this current candle, but volume is already nearing the same level of the previous candle's volume and price is attacking the green descending wedge's resistance. A successful breach through that green resistance, and continuation, provides a $3865 target. That is also at/near the top of the descending channel. As always, traders must be mindful of previous swing highs. We need to see candles closing above them, not wicking up and then closing below. This latter scenario results in a bearish SFP which should be an indication that price will reverse for a short time at the least. The 15 minute through H1 TFs are overbought signalling that we may see a bit of a pullback before further advancement but it's not guaranteed. Price's current location has the potential to result in strong FOMO that could keep those TFs overbought for a while. At this point, the two most important thing to watch are the H4 and D1 RSI levels. We want to see them both closing and remaining above their respective resistance levels because they are longer term resistance. I have added a few price range target tools to give traders an idea of targets based on patterns that are breaking bullishly. As long as they continue to do so, each target should continue to lead to the next higher target. Failure of follow through should have traders watching the bottom of the blue TR and the two dashed lines below it. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
2
BTCUSD H4/D1 charts (2/7/2019)Good morning, traders. After the recent drop and immediate reversal price has continued to move sideways adding to traders' already pessimistic attitudes and boredom. But don't let the market lull you to sleep. These are precisely the times traders need to be extremely aware of what's going on as sudden moves often do happen and catch sleeping traders off guard. Bitmex supply side order book looks much less aggressive than it has for the past week and its buy side is stacking up once again. Bitfinex order book continues to be the leader for the spot market with demand spikes currently showing 1070 BTC at $3410 with 500 more at $3350 and another 611 at $3300, while supply side is showing 801 BTC at $3800. What we have is a continued slow drift downward within a descending wedge near the bottom of a descending channel on the D1 chart. D1 RSI also remains within the descending wedge that it has been printing and MACD remains flat with possible bullish divergence printing across November 27th til January 31st. We need to see MACD curling up before we can confirm this though. H4 RSI continues to print a symmetrical triangle which could lead to a break up. But in order to do so, demand must overcome supply. The higher RSI lows show demand increasing, but the lower highs indicate that supply is still pressuring the pair. In other words, as I have been saying, demand and supply are fighting hard for position. The weekly 200 MA is sitting at $3314 currently with weekly volume near the lows seen just before price dropped through the $6000 floor, so I wouldn't be surprised to see a retest of that MA. An objective look at what's going on, especially if you compare it to 2015, suggests that we should get a bounce off the 200 MA area, followed by a move toward the top of the TR and the descending ATH resistance, then a move back down to the bottom of the TR for a Spring followed by a move up and out of the TR. I'm not telling anyone to change their minds about moves toward $2000 and lower, only reminding them that price has continued to set up this particular move and it aligns with the weekly look at the 2015 correction. Switching from candles to line view makes the picture much clearer and I will take a look at that during this morning's live stream. Remember, my goal isn't to convince you that you are right, wrong, or otherwise, only to help you keep your emotional bearishness in check so that you trader smarter and protect your capital. At the end of the day, we are still in a corrective market until proven otherwise so the trend is down. The key is to pay attention to what's going on so that you can notice potential reversals setting up and keep from getting caught in the wrong direction when the market does reverse. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
2
BTCUSD H4/D1 charts (2/6/2019)Good morning, traders. Overnight saw Bitcoin finally falling through the bottom of the ascending channel. As I have been warning, failure of follow through on a break through resistance will likely result in price continuing to head lower. That strength into the end of the daily candle yesterday printed a bullish cross on the MACD which has since turned into a potential bearish cross today. I say "potential" because we need to wait for the daily candle to close in order to confirm it. Furthermore, there was no follow through on the bullish SFP that printed as well. Price is now printing a symmetrical triangle after the $100 drop, but it looks weak suggesting a further move down. In terms of a TR, we have potentially only seen the beginning of this one with the January 28th low marking the lower bounds and the January 30th high marking the upper bounds. This is the blue channel and is something I discussed as a possibility about a week ago. Is this trading range a shorter-term redistribution or accumulation? There's no way to know at the moment. The expectation should be a further drop toward the bottom of the blue TR, likely around $3300 (or, with enough FOMO on the drop, potentially $3260 to tag the bottom of the larger descending channel), and print an ST. Ideally, we will see a bullish SFP print at that time and have price pushing back up toward the top of the TR. If price moves as such, but doesn't break yesterday's high, then it is much more likely to be redistribution and we will be looking for price to head lower after that, once it breaks the swing low. However, if it is accumulation, then we will see a target of $3640/90 and the greatest likelihood of that lower low being the second bottom in a double bottom pattern. A further breakdown a-la redistribution threatens the larger descending wedge that price has been printing since the January high and signals a likely retest of the 2018 low. But a move up via accumulation in this local TR would signal a clean bullish break through the green descending wedge's resistance and create a target of $3950, at this time, which is also the major resistance holding back a possible move up to the low-to-mid $5000s. H1 RSI is hugging oversold and the MACD is curled up toward the signal line attempting to push toward a bullish cross. H4 RSI is just a bit above oversold which means there's still room for that above-mentioned drop in price. So far, this recent drop's H4 volume has been significantly less than the volume on the SC leading into the blue TR. Daily volume is rivaling yesterday's and we still have more than 1/3 of the day left. Daily RSI remains within the descending wedge it's been printing since December. We are going to take a look at BTCUSD shorts, longs, and volatility during this morning's live stream, as well as USOIL (which is following the path I outlined a few days back), DJI, and maybe even some FOREX. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
2
BTCUSD H1/D1 charts (2/5/2019)Good morning, traders. The big news yesterday was potential proof that the Mt. Gox trustee was selling Bitcoin on the BitPoint exchange, rather than OTC, through the first half of 2018 (www.goxdox.com). If so, it could help us understand why price failed to rally strongly enough off the $6000 level and ultimately fell through, after that level supported price for most of the year. But I'm not here to take a side or convince you one way or the other. That's up to you to decide. Instead, we are here talking about price today and it's not looking terrible at this time. Bitcoin's price bounce off ascending channel support overnight and is now attacking local resistance. There has been a significant fall-off of visible nearby supply on the orderbooks as well. However, we need to see a close above the February 4th swing high of $3439.46 on the H4. After that, we then need to see a close above the February 2nd swing high of $3485. Doing so will open the gates for a run toward $3570 and, of course, the January 25th swing high of $3657.89. If we can see price close above those swing highs, then the next step becomes the January 19th swing high of $3774. That's the step-by-step look for the shorter TF traders. The H1 chart continues to show volume picking up in the $3385-$3435 area. I am watching for a move through the descending blue local resistance to signal a long target of the $3465 level which is just below the EQ of the ascending channel that price has been printing since January 29th. However, this doesn't mean that price will reach that level. Demand appears to be weak so traders that intent to trade this level are going to have to be prepared for a lack of follow through. RSI is printing a nice ascending channel, so traders can also watch for a move outside of that channel to suggest price direction. The weekly 200 MA continues to show the support level just below price at around $3300 right now. This TF and the D1 also shows a clearly defined triangle which price bounced off of last week and, with follow through this week, we should be expecting to see a move up to the top of it around $3900-$4000, depending on how long that takes. The D1 descending wedge suggests a breakout to the upside as well. That breakout would provide a target of the top of the triangle, so there is good confluence on that move. A successful push and continuation through the triangle's resistance provides a target of $5200-$5300 based on the width of the triangle. Currently, this is close to the daily 200 MA, again another strong confluence area as it is also a supply zone that was created during the fall from the $6000s. Finally, if price were to hit that supply and remain strong, that would have it above the long-term resistance that dates back to the ATH. Such a move should then indicate a target of just over $15,000 based on the HTF descending wedge that began at the ATH. The D1 RSI has a lot of room to run as it is currently bearishly under neutral at 41 and is attacking descending resistance. It was also most recently strongly oversold (the lowest recorded daily RSI at 9.4) and has yet to return to overbought as we generally expect RSI to move. Interestingly, MACD is also showing signs of bullish divergence between November 27 and January 31, if price can continue to push up from here to confirm that January price point. The monthly chart is interesting. We can note the large drop from the $6000s in November, however we saw even greater volume in December but a very small candle spread and good lower wick. January saw volume comparable to this past summer, but again small candle spread. This appears to be suggesting that demand continues to show up and while it hasn't been enough to send price higher just yet, if it holds then supply will continue to get eaten up and we could see price moving higher and catching most traders off guard. The M1 wedge is the dominant pattern at this time and based on prior movement suggests that price should be moving sideways/up to challenge the pattern's resistance. This would give price another alternating touch of support and resistance thereby confirming the pattern. If that were to happen, then my expectation continues to be what it has been in that we would see price test that resistance, retrace a bit, and then push through the resistance. Looking at the daily chart, the move toward resistance isn't unthinkable. None of this guarantees that price will move up, and there is room within the local D1 descending wedge to drop once more. Because the D1 triangle hasn't seen a good rebound off the bottom other than the initial move, price dropping to the bottom of the small local descending wedge doesn't mean a bearish break of the triangle. Rather, it could just be signalling that the bottom is at that lower point if we see a strong move back toward the triangle's resistance. Ultimately, any move below $3300, and prolonged stay there, has me feeling much more bearish. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
2
BTCUSD D1/M1 charts (2/4/2019)Good morning, traders. Bitcoin continues to trade sideways with no significant increase in visible supply or demand on the order books. While Bitmex has continued to show stronger supply, spot exchanges are showing stronger demand. Traders should consider both but give more credence to spot exchanges as Bitmex's swap system and 100x leverage draw to it the gamblers (those with a stronger "casino" mindset) which means they are generally short-profit driven which leads to constantly jumping between buying and selling. Spot exchange traders tend to have a more definitive outlook and as such aren't prone to as much flip-flopping. Again, this is speaking in generalities. At this point, price has printed a perfect descending channel on the daily. The daily RSI has printed a descending wedge whose apex it is nearing, and volume has continued to drop as price has consolidated, which means that we should see a strong push by price in either direction sooner rather than later. Price is also treading along, just under, the steeper red resistance. I have outlined the horizontal resistance levels in blue as well. Currently, my expectation is for price to target the supply EQ around $4500 as noted once it moves through the channel's resistance. Traders must watch for price to target the channel's EQ and then its resistance before thinking of the supply EQ, however. These more local levels give shorter-term traders ideas of where to watch if going long or short in the near term. Yesterday's candle was very low in terms of volume and today's candle is already almost even, yet the candle spread is very small so far. This is something traders should watch through the end of the day. Based on the steep red resistance line, a successful move beyond it should have price targeting the January 19th swing high around $3760/80. We would need to see the candle closing above that swing high to protect price from a bearish SFP and signal further advancement. A successful close below the January 29th swing low at $3322 would have price likely targeting the $3200 area and failure for that level to hold puts $3000 on guard. The monthly chart is interesting. We can note the large drop from the $6000s in November, however we saw even greater volume in December but a very small candle spread and good lower wick. January saw volume comparable to this past summer, but again small candle spread. This appears to be suggesting that demand continues to show up and while it hasn't been enough to send price higher just yet, if it holds then supply will continue to get eaten up and we could see price moving higher and catching most traders off guard. The wedge is the dominant pattern at this time and based on prior movement suggests that price should be moving sideways/up to challenge the pattern's resistance. This would give price another alternating touch of support and resistance thereby confirming the pattern. If that were to happen, then my expectation continues to be what it has been in that we would see price test that resistance, retrace a bit, and then push through the resistance. Looking at the daily chart, the move toward resistance isn't unthinkable. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
1
Falling and Rising WedgesOne of the first things to know about rising and falling wedge patterns, is that they’re a great indicator of an upcoming reversal. Much the same as other wedge patterns, they’re formed by a consolidation period representing either distribution or accumulation. While both rising and falling wedges can form over a period of any length, typically the longer the consolidation period, the more explosive the breakout will be when it eventuates A Falling Wedge is a chart pattern within the context of a downtrend composed of two downward sloping and converging trendlines connecting a series of lower swing/pivot highs and lower swing/pivot lows. The power of a Falling Wedge can be greater after a moderate downside move due to the possible decrease of overhead resistance as the pattern is formed. Falling Wedges can be stronger when the series of lower swing/pivot highs and lower swing/pivot lows that formed the pattern narrow down into a point/apex as bears become less interested in selling. 2)A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows. The power of a Rising Wedge can be greater after a moderate upside move due to the possible decrease of underlying support as the pattern is formed. Rising Wedges can be stronger when the series of higher swing highs and higher swing lows that formed the pattern narrow down into a point/apex as bulls become less interested in buying.
COINBASE:BTCUSDEducation
by CryptoC77
The Simple Trick Making ME Money and Losing YOU MoneyToday's post is going to be a quick one but it is important. I think that understanding support and resistance levels is one of the most important things you can do as an investor. They are key indicators of market movement and they can be used in so many different scenarios. The biggest issue is that people use them incorrectly! I posted the other day talking about a support level for COINBASE:BTCUSD . I said that there was a support at $6000 USDT. Then the craziest thing happened...it dropped below it and actually bounced near 5858. Then I received a comment saying that my support level was wrong..... Guys! Support and resistance levels are ranges. They ARE NOT singular numbers. There is no magical book that says that the price has to bounce at a specific level! They are buying and selling ranges that form from people trying to break even. Understand this, there were people that wanted to buy COINBASE:BTCUSD when it went down to 6000 the last time but they were not able to. So they did what most people would do. Wait. They left there buy orders there so that they could get in on the action. Then when the price fell all those people that wanted to get in the last time were now able to get in. This is why support levels form over and over again and this is why they eventually break. When there are no longer buyers that want to get in near that level, the price ends up breaking through. So with that in mind, things are never going to be perfect. I can't really blame you for thinking that it is a specific number because almost every technical analyst uses very thin lines to describe these levels. This is not "wrong" but it also teaches some bad habits. An easy way to fix this is to start using rectangular ranges instead of thin lines. For example, you can see these ranges for COINBASE:BTCUSD that I have drawn above. Anything in the green is a buying range (or a support) and anything in red is a selling range (or a resistance). I draw these ranges by picking the extreme resistance as the top and then finding the next resistance underneath that for the bottom. I really hopes this helps you understand where market turns are most likely going to happen. These zone are key and I hate when people don't sell because they are so caught up on a specific number ranther than a range. Go out there and make some money. I am not going to lie, the market is tough right now. Be smart and always make a plan.
BITFINEX:BTCUSDEducation
by UnknownUnicorn1542001
2
Lesson 6A - Breakout Patterns - Falling Wedge (Bullish)Welcome back to Lesson 6 traders. I have something interesting for y'all in this lesson. This lesson is going to be a series on Breakout Patterns. I will be posting one breakout pattern at a time, so it is easy to understand, and clean enough to follow. The following lessons are going to be posted in lesser time. So in the Lesson 6 series, since there will be multiple topics for breakout patterns, I will be splitting them into Lesson 6A, 6B, 6C and so on.... In Lesson 6A, we will be going over the Falling Wedge breakout pattern. We will be looking over the criteria to qualify for this pattern, and what to look for in order to get a breakout confirmation. Falling Wedge is usually a bullish pattern most of the time. It usually is wide from the top and contracts as it moves down to the lower price levels. There are certain criteria for a falling wedge to qualify to be a reversal or a breakout pattern. Lets follow the chart above in order to get a good understanding of what I am taking about here. Actually I will post the above chart right here for you so it can be easier for you: So in the chart above we can clearly see TWO falling wedges, they both are for the same breakout that happened in TRX, so you can refer to any of them. We will go over the step again as a summary, but let us first go over the detail so you get a clear view on this. Whenever I am looking for a falling wedge patterns, I make sure the resistance line, which is the upper line of the falling wedge connects minimum of 3 candle sticks. Sometimes we can get away with 2 candle sticks, but when we have 3 connected candle sticks, meaning the price has pulled back after touching the resistance line at least 3 times, we can check off one of the criteria for a falling wedge. Now for the support line, which is the lower line of the falling wedge should at least have a minimum of 2 candle sticks touching the line, meaning the price has bounce at least 2 times after touching the support (lower) line of the falling wedge. This is considered the second criteria for the falling wedge. This just means that you have a close to accurate enough data to consider this as a reversal pattern for the selected time frame you are into. If we look closely at the chart, for the resistance line, the price has pulled back after touching it about 4 times, and 3 times for the blue support line. Notice how the price candles have not closed outside of the resistance or the support line. This is really important for a valid pattern. Since we have BTC movement effecting the altcoin prices, we can ignore the candles closing just a little outside the resistance/support lines, but mostly the price should be moving inside the wedge. Another criteria for a falling wedge is that, it starts out wide, and the wedge contracts as seen in the chart, as the price moves lower. Once we have these three criteria lined up, we have a confirmation that the price pattern is currently moving in a falling wedge. So now, all we need to do is wait for the breakout. Remember, this is very very important. In order to confirm this reversal, the price must breakout from the falling wedge to the upwards. If it breaks towards the bottom (support line), this pattern gets invalid. As we see in the chart above, the candle breaks out of the falling wedge, and the price start moving rapidly upwards. Thus, we can say that the falling wedge on the chart above is a valid falling wedge pattern. You must have understood this pattern by now. Make sure you do by reading what I have written above, and looking at the chart at the same time. Continue reading below......
Education
by MoneyChartz
7
Education: The ascending wedge. BNBBTC ExampleThe ascending wedge is a pattern in price action that has an uptrend with higher lows and higher highs, however the lines that connect the lows and the highs are tightening. This usually suggests that bull strength is running out, as every rally running toward the resistance is shorter lasting and moves less in terms of price action. Ascending wedges can break to the upside as continuation, or to the downside as reversal. However they don't usually reverse the underlying, longer term trend. The standard target on a bearish entry on the break of the ascending wedge is the starting point. You can see in the BNBBTC example that the price reversed up very close to the same level that marked the start of the wedge. Sometimes the ascending wedge will break bullish, to the upside, but the chances of that are lower as the support line is rising faster - what this means is that if the price traded sideways, it would eventually break the support line and thus the bears need less strength to break that support line than what the bulls need to break resistance. In this example the ascending wedge is going with the trend, as BNBBTC is very bullish on the daily and weekly, as such the expected outcome of the ascending wedge is not a trend reversal, rather it is a retracement back down to the starting level and likely continuation to the upside in the medium term. An ascending wedge during a downtrend is much more likely to be a continuation pattern, and short term bulls that played this wedge should make their exit as soon as there is a close below the support line.
Education
by pablo.lo.rivadeneyra
Every major chart pattern between 3/18 and 3/28!Chart patterns are great ways to anticipate reversals of trends. Other indicators like MACD and RSI can help you figure out more exactly when but identifying chart patterns are a great way to see a reversal coming. The first step is knowing how to draw trend lines. With these you can more easily see how the range of a certain move is changing. If the range is either tightening or widening, the likelihood is that a reversal is coming. Typically, volume will also steadily decrease throughout the pattern, ending in a climax in which the trend reverses. On the chart you can see several types of common chart patterns labeled, bearish in red and bullish in purple. I always consult Thomas Bulkowski's guide on chart patterns if I am ever in doubt. His observations were for stocks but work really well for cyrptocurrency trading as well. Especially because patterns tend to form a lot more quickly than traditional securities. Resources: (1) Rising (ascending) wedge (2) Bullish pennant (3) Falling (descending) wedge (4) Descending broadening wedge Peace and love, crypt0guy
BITFINEX:BTCUSDEducation
by crypt0guy
Perfect education for a breakout setup!This is a breakout out of the book! look how nicely it formed! we see a highest high to start from. And then it all goes according to what the textbook says: "Price will form higher lows and lower highs, until it all collapses and just breaks out." This is a pattern you should always keep in mind! It is sooo likely to happen, and more important, if you trade 10 of them, and 7 go wrong, but 3 will breakout like this one, you can still make money! Just make sure you have the SL positioned right, your loss will be small, and your win will be extraordinary! So, this is mainly what I am looking for, unfortunately we have billions of stocks around, and you just cant scan them all... ROCK ON! Comment if you like Give me some thumbs up!
XETR:HDDEducation
by Evan_Moe_Money
1