BNB Retesting 604BNB is likely to retest the $604 resistance. Closing above it with two 4H candles could means a continuation to a bullish trend.
Bollinger_bands
ETH Refuses to Enter Bullish TrendETH is moving below the weighted Bollinger Bands again, erasing the small bullish movement yesterday. Yesterday could be considered as a retracement for short sellers. However, as long as ETH is above the 40k price, the general sentiment is quite bullish. Breaking below the the 40k will confirm the bearish wave of the bands.
ETH is starting the bullish trend!On the 4-hour chart, we can see that ETH has successfully broken above the weighted Bollinger bands, marking the start of a bullish trend. If the price can break above the resistance line, we will then have a confirmation of a full bullish trend.
BTC is not bullish yetFrom the daily chart, Bitcoin is not bullish yet. The upward movement has not broken through the upper bands of the weighted Bollinger Bands. Short term movement will indicated bearish trend. We can expect bullish trend when the price breaks above 63,130-ish.
Bollinger Bands Explained, All you need to know Hello everyone, as we all know the market action discounts everything :)
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In today’s video we are going to be talking about the Bollinger bands , How are they constricted and how to use to try to identify trades in different financial markets.
Some people think about the Bollinger bonds as a complicated indicator but after you watch this video you will see how easy it is to use.
Lets start with the theory before we see a real life example :
The Bollinger bands were developed by a man called John Bollinger, so no surprised where the name came from.
So the Bollinger breaks down to a Moving average and some volatility bands around that, What we have first is a moving average and on the top and bottom of that moving average we have our bands and they usually are located 2 standard deviations away from the Moving Average.
The idea here is to describe how prices are dispersed around an average value, so basically, these bands are here to show where the price is going and how it's moving for about 95% of the time.
So how do we use this indicator :
1) The first way people use this indicator is when the market price reaches the edges of the Bands, The upper end for example shows that it's possible that the market is overextended and a drop in price will happen, if the price reached the lower end then the market will be oversold and a bounce in price is due.
2) The second way to use this indicator is called Targets, It simply allows us to set up targets for the trade, if we buy near the lower Band then we could set a target above the Moving average or near the higher Band.
Because these bands are based on price volatility they won't stay at the same place from the MA, That means if the volatility drops then the bands will get tighter (Squeeze) , and if the volatility goes up then the bands will go further away from each other (Width).
People use this method to try to understand what's going on with the current trend, so basically if the bands are really far away then it’s a sign that the trend is currently ending, and if they are really close then we could be seeing an explosive move in the trend
IMPORTANT
I always say that you always need to use different indicators when you analyze any chart, this way you will minimize your risk and have a better understanding on how the market is currently doing.
I hope I’ve made the Bollinger Bands easy for you to understand and please ask if you have any questions .
Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI and The MACD, links will be bellow
BTC - Be prepared to adapt to different scenariosBTC Daily Chart Analysis: (Unbiased & just telling it how it is)
BTC is still ranging sideways within its massive sideways channel. Note that even if BTC drops back down to $30K, it will still be considered ranging sideways so you should be prepared for this because it will become more of a possibility especially if BTC continues failing to break ABOVE and more importantly CLOSE a daily candle ABOVE its Sideways Channel Resistance.
BTC has found strong resistance from its 2 resistance levels.
BTC has found some support from around its $38,355 support line area.
BTC is sill above its Volume Profile Visible Range (VPVR) Point of Control (POC) for this charts visible range.
IMPORTANT: Since the big volume spike on the 26th July, Daily Volume has been DECREASING and note that the yesterday’s Volume Bar closed BELOW its Volume 20 Period Moving Average. We shouldn’t have been shocked by today’s drop, it was inevitable because you can clearly see the Divergence between the previous 4 days Candles and the Volume Bars because it was indicating a rising Price but diminishing Volume.
Note that BTC is still safely above its WEEKLY 50EMA.
BTC is still above its Bollinger Bands Middle Band Basis 20 Period SMA. Note that the Upper and Lower Bands have started to curve sideways and that this daily Candle is now back inside the Upper Band. Decreasing volatility is to be expected especially after the last few days of increased volatility.
The Moving Average Convergence Divergence (MACD) is indicating upwards momentum is weakening with the MACD Line (Blue Line) curving slightly sideways and notice the green histogram has lightened and decreased in height which is a sign of weakening upwards momentum. The day isn’t over yet so this may change. A very bad sign for longs on the daily will be if the MACD Line (Blue Line) crosses back Under the Signal Line (Orange Line) which would be a major sell signal for most traders.
The Average Directional Index (ADX DI) is indicating Positive Momentum has dropped with the +DI (Green Line) dropping to 31.67, note we also have increasing Negative Momentum with the -DI (Red Line) moving up to 14.62. The ADX (Yellow Line) is starting to curve sideways at 29.17 and the 9 Period EMA (White Line) is pointing upwards at 27.06 so if the 9 Period EMA (White Line) crosses back above the ADX (Yellow Line) then we may see a continued weakening of trend strength on this 1D timeframe.
The Chaikin money Flow (CMF) is indicating accumulation has dropped slightly with the CMF (Green Line) dropping to 0.16. The CMF (Green Line) is still above its Least Squares Moving Average (LSMA) (Blue Line) which is at 0.08. You do to want the CMF (Green Line) to cross under the LSMA (Blue Line) on this 1D timeframe.
The Relative Strength Index (RSI) is indicating a big increase in downwards momentum and the RSI (Purple Line) has dropped out of the Overbought Zone for this 1D timeframe. We can expect more downwards trajectory if the RSI (Purple Line) crosses below the 9 Period EMA (Yellow Line) which will be further confirmation of increasing downwards strength on this 1D timeframe.
Potential scenarios if BTC continues failing to CLOSE a Daily Candle ABOVE its Sideways Channel Resistance:
1: BTC drops back to its Bollinger Bands Middle Band 20 Period SMA level as potential support.
2: BTC drops back to its WEEKLY 50EMA level as potential support.
3: BTC drops right back to its Sideways Channel Support at around $31K - $29K levels as potential support.
4: BTC continues to flop around $40,951 - $36,970 ranges.
5: BTC continues to flop around $40,951 - $38,355 ranges.
Obviously this is all my opinion and BTC could be at $64K by tomorrow lunch time ;-) but NOT if it continues failing to CLOSE a daily candle ABOVE its sideways channel resistance ;-)
I hope this is helpful with your trading and hodl-ing.
ADA - Let's have a look at the 4hr chartADA 4hr chart:
ADA is above its 50EMA for this 4hr timeframe.
ADA is back above its Bollinger Bands Middle Band Basis 20 Period SMA.
ADA is still above its ascending support line.
ADA is above its Volume Profile Visible Range (VPVR) Point of Control (POC) for this charts visible range.
ADA is above its Volume Profile Fixed Range (VPFR) Point of Control (POC) for this charts fixed range i have selected.
Volume has been increasing and note that the Volume Bars have been above the Volume 20 Period Moving Average for the last 6x 4hr Bars.
The Moving Average Convergence Divergence (MACD) is indicating we may see the MACD Line (Blue Line) may cross back above the Signal Line (Orange Line) which would be a potential buy signal for most traders who use this indicator. Note that the Red Histograms have turned lighter and are decreasing in size.
The Chaikin Money Flow (CMF) is showing a sharp rise in accumulation with the CMF (Green line) rising to 0.10, back in the accumulation zone and back above its Least Squares Moving Average (LSMA) (Blue Line) which is at 0.02. Note that the CMF (Green Line) has dipped a bit on the start of this new 4hr candle.
The Average Directional index (ADX DI) is indicating Positive Momentum is sideways with the +DI (Green Line) at 27.65 and way above the -DI (Red Line) which has dropped to 15.18. The ADX (Yellow Line) is at 28.56 but still below its 9 Period EMA (White Line) which is at 29.44. Note that the ADX (Yellow Line) is starting to curve upwards so we may see the ADX (Yellow Line) eventually cross back above the 9 Period EMA (White Line) which would be a sign of good upwards trend strength if the +DI (Green Line) stays above the -DI (Red Line).
The Relative Strength Index (RSI) is indicating upwards momentum has increased with the RSI (Purple Line) back above its 9 Period EMA (Yellow Line). Note that at the moment of typing this, the RSI has dipped slightly indicating a weakening of upwards momentum.
All in all ADA is looking quite strong on this 4hr chart and looks even better on the Daily and Weekly charts. Obviously we need to keep an eye on what BTC is doing and whether or not BTC can successfully break upwards from its sideways channel. If the MACD Line (Blue Line) crosses back above the Signal Line (Orange Line) then we should see increased upwards momentum.
Again my charts are not price prediction charts but more educational explaining what the indicators i have selected are actually indicating so i hope this is helpful with your Trading and Hold-ing.
AAPL- Triangle Breakout, Bullish- Have been watching AAPl for quite some time now (see the previous chart).
Finally approaching the end of this triangle, has bounced off the bottom trendline multiple times in addition to holding & bouncing off its 200day EMA.
- On top of approaching the end of this triangle, AAPL is squeezing on its daily chart between the AVWAP of the previous high and low with its Bollinger bands squeezing as well.
- MAs are curling while price action reclaims them (not pictured) with a huge symmetrical-triangle on its weekly chart
The bigger the base, the bigger the breakout
PT1 - $129.5
PT2 - $130.5-$131
Long Term PT $135 + Breakout.
Previous chart-
ADA - Longterm food for thoughtCrypto drops like the one today can look devastating on the lower timeframes, but if you take a breather, step back, zoom out and look at higher timeframes like the weekly, you’ll soon see the bigger picture.
ADA is still well above its Bollinger Bands Middle Band Basis 20 Period SMA on the weekly chart.
ADA is still well above its 50EMA on the weekly chart.
ADA is still well above its Pitchfork Hagopian Line on the weekly chart.
While ADA is below its 2nd Pitchfork Median Line, notice that ADA is still well above its 1st Pitchfork Median Line.
Notice how the Bollinger Bands Lower Band has risen up indicating decreased volatility on this weekly chart. As you can see, ADA is still in a longterm uptrend, scan back on this chart and see what happens when the Bollinger Bands Lower Bands move up after a period of strong upwards volatility…… there will possibly be sideways ranging…… then another period of increased volatility and looking at the ADA chart it’ll more likely be upwards.
ADA is still in a longterm uptrend, and that will not change until ADA drops and closes below $0.63 which is below the 1st Pitchfork Median Line and the Pitchfork Hagopian Line. Periods of sideways ranging and drops are good fro the market and entice new buyers to buy ADA at a cheaper price.
Yes there will be more drops and sadly BTC still controls the market direction but if there is one crypto that has shown true individual strength & said “meh” to the Bitcoin crypto market manipulation drops and recovered quickly, it is ADA.
You can check my older post when ADA was below $1, i posted many time saying “accumulate more ADA before ADA gets to $1”, now i’m saying “accumulate more before ADA gets to $10”. If you're longterm, then any drops with ADA should be used to accu…………… well, you know what to do.
I hope this is helpful with your trading and hodl-ing.
Bollinger Bands - Contraception for your Price ActionSo i thought i’d do another educational post, this time on the Bollinger Bands. I’ll try and keep this as a brief introduction to the basics of Bollinger Bands so you can do your own research to fully understand what the indicator is doing and showing, there is no point putting a fancy indicator on your chart if you have no idea what it is showing you. Bollinger Bands measure, Price & Volatility, potential Support and Resistance, & it can also give you a sense of if an asset is Overbought or Oversold, although its best practice to use another indicator to get confirmation of being Oversold or Overbought because the price can walk the Upper and Lower Bands for extended Periods. The Standard Bollinger Bands is composed of a 20-period Simple Moving Average (SMA) which is its Middle Band, it also has an Upper Band & a Lower Band which envelopes the SMA. The outer bands are a +/- 2 Standard Deviation (StdDev) of the 20-period SMA in whatever timeframe you are in. A Simple Moving Average (SMA) is an unweighted average of the Previous 20-period Values in whatever timeframe you are in, so for the 1min chart, the SMA period will be an unweighted average of the previous 20 mins, for the 1hr chart, the SMA period will be an unweighted average of the previous 20 hours, for the Daily chart, the SMA period will be an unweighted average of the Previous 20 days and so on and so on. You are able to change the SMA to any period you want, some trading sites also allow you to change the SMA into an Exponential Moving Average (EMA). Changing the timeframe from the standard 20-period SMA to a faster SMA like a 10-period, will allow faster entry into possible buy & sell points but could be prone to false signals, because of this, most people keep the SMA at the Default of 20-periods to avoid possible false buy/sell signals. You can change the StdDev settings, but you must know what you are doing as you cannot just add any number for shits and giggles, for example, a 20-period SMA is 2 StdDev, a 10-period SMA is 1.5 StdDev and a 50-period SMA is 2.5 StdDev as default. For those interested, & from my understanding of it, the Population Standard Deviation used in the Bollinger Bands system is a measure of the +/- dispersion/variation of the mean or the sum of a collection of values, the values being the 20 periods, so a +/- deviation value away from its Midpoint Basis in whatever timeframe you are in. I won’t go into the calculations because everyone will stop reading & it’ll also hurt my head because i cannot even count. So the + is the Upper Band and the - is the Lower Band. So looking at the Bollinger Bands, we now know that the Middle Band is the basis & the Upper and Lower Bands are +/- Standard Deviations of that Middle Band Basis in whatever timeframe you are in. With Low Volatility, the closer the Upper and Lower Bands are to its Price & Middle Band Basis. The more volatile the Price action is in either direction, the further away the Price will move from its Middle Band and move closer to its Upper or Lower Bands depending on if it’s Bullish or Bearish. Along with the Price, the Upper and Lower Bands will also expand outwards and move away from its Middle Band. With extreme volatility the Price may even wick out or close a candle out of its Upper or Lower Bands. If there has been a period of Volatility which has come to an end, then you will see the Upper and Lower Bands start to contract inwards. You can use the Middle Band as potential Support and Resistance Levels depending on if the Price is above or below it. You can also use the Upper and Lower Bands as potential Resistance Levels, and also as potential entry levels for longs or shorts respectively. The Lower and Upper bands will point outwards and inwards depending on if the Price is contracting or expanding respectively. With normal volatility, if you use the default 20-period SMA & 2 StdDev settings, then the price action will possibly remain within the bands for roughly about 90% of the time. The Price will eventually move back in to the Upper or Lower Bands if there has been a period that the Price has been outside of the Upper or Lower Bands. What is great about the Bollinger Bands is that you can apply it to any chart and timeframe that has enough previous trading data, and use it to get a feel for the assets volatility over time. A key thing to look out for is the Bollinger Bands Squeeze, this happens when you buy latex contraception that’s too tigh……… sorry…… this happens when volatility has slowed & the Upper and Lower Bands contract, envelope and stay close to the Price & Middle Band so essentially Price action is trading sideways within a channel made up of the Lower and Upper Bands. The Bollinger Bands Squeeze Pattern can potentially end in a big breakout upwards or downwards. Bollinger Bands can also be used to see Bullish W-Bottoms or Bearish M-Top signals in the Price. These signals have 4 steps that need to happen for it to be considered valid but i’ll let you do your own research on that. The Price can also walk along the Upper and Lower Bands for an extended period of time depending on if the Price is Bullish or Bearish. It’s best practice to use complementary indicators like Volume, RSI, ADX, STOCH or MACD to try and get confirmation or any potential breakout. I actually use the Bollinger Bands on my charts in conjunction with the Ichimoku Cloud.
On a side note, having a grasp of the basics of the original Bollinger Bands crated by John Bollinger is the first step to really understanding it and properly using it to enable you to make wise decisions with your money/investments. If you have an understand of the original Bollinger Bands, then that can help you with understanding other price enveloping indicators like what David ‘WycoffMode’ Ward has created. David has created his own genius take on the Bollinger Bands called Bad Ass Bollinger Bands, which is quite fascinating because it shows multiple +/- Standard Deviations for whatever timeframe you are in. You could potentially use these as multiple Support and Resistance Levels for whatever timeframe you are in and also look for any potential cascading effect from lower to higher timeframes using these multiple +/- StdDev levels, he does state however that to get the best out of it, you have to use it with his Phoenix Ascending indictor, which from what I’ve seen, i think it complements his Bad Ass Bollinger Bands by showing Momentum, Upwards and Downwards Pressure & potential Trend Crossover, this agrees with what i have said above, about using other complimentary indicators with your Bollinger Bands like RSI or MACD. From what I have seen of David’s Bad Ass Bollinger Bands, one of the many benefits of having multiple +/- Standard Deviations, 8 in total, 4+ & 4-, is that you end up with a closer to 95-99% of the Price action staying within the Bollinger Bands for more accuracy. 99% because if there is extreme volatility, that may still cause a Candle Wick to poke its head out. This new indicator is potentially a real game changer. This is just my opinion from what i have seen of it, so i could be completely wrong & David could say it doesn’t mean anything that i've typed and he’s gonna hunt me down for typing complete bollox. Below is a pic to show you the differences between the original Bollinger Bands and the Bad Ass Bollinger Bands.
In any case, it’s best practice that when using your charts, you should have a range of indicators to complement each other, an indicator for Momentum, Volatility, Trend, Price, Volume ect. You do not need to add 4 indicators on your chart that show the same thing. If your using RSI then you don’t really need the STOCH, If you’re using MACD then you don’t really need ADX or Parabolic SAR.
If you’re interested in learning more about the Ichimoku Cloud System, please click on the below pic which will take you to an educational post i did about it.
I hope you have found this brief intro helpful & i hope it encourages you to do your own research to find the best trading strategy for you. Cheers 👍
Bollinger Bandit Trading StrategyThis trading strategy gives trading signals when price breaks through the 1 Standard Deviation Bands of a 50-period Bollinger Band. Buy signals are generated when price breaks through the upper 1 Standard Deviation Band. Sell signals are given when price breaks through the lower 1 Standard Deviation Band.
Buy signals are confirmed when the close of today was greater than the close of 30-days ago. Sell signals are confirmed when the close of today is lower than the close of 30-days ago.
