ENA/BTC.D
Markets can be deceiving. Often you need to look deeper than just price action and combine indicators to help tell a better story. I've found divergence and convergence between price and various indicators, particularly volume-based metrics and oscillators fairly successful. Remember it's all about supply and demand. Find imbalances and deviations.
I've found order flow and auction market theory useful when navigating the markets.
By the way, can you spot the divergence? Let's see if the volume and open interest support the current move. If so, we should see a continuation in price action (until proven otherwise IE conformation or rejection moves in trends). This concept can be deceptive as we need to consolidate movement amongst whatever fancy indicator you like using. I'm specifically looking for deviations in market structure (higher highs and lower lows etc.) By observing changes in market structure amongst different indicators. It paints a better picture around buyer and seller pressure. Observe to see if the receiving side can absorb the pressure or not.
I've found order flow and auction market theory useful when navigating the markets.
By the way, can you spot the divergence? Let's see if the volume and open interest support the current move. If so, we should see a continuation in price action (until proven otherwise IE conformation or rejection moves in trends). This concept can be deceptive as we need to consolidate movement amongst whatever fancy indicator you like using. I'm specifically looking for deviations in market structure (higher highs and lower lows etc.) By observing changes in market structure amongst different indicators. It paints a better picture around buyer and seller pressure. Observe to see if the receiving side can absorb the pressure or not.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.