8H & Daily SnR banding, tight! which way will it break?Looking at the 8Hour and Daily Heffae Cloud, using shorter chart TimeFrames to show how price interacts with the Predictive SnR paths and RealTime paths with more detail.
Heffaeclouds
Trade like a BOSS, Heffae Tip for Perfect trade entries & TAPro-Tip on getting a better view when there is an interaction with Heffae Clouds.
Reduce the chop and set tighter stops that are hit less often.
Shaded cloud & intercloud paths are drawn 124 Hours (5.1 Days) in advance with 4H timeframe.
Heffae's clouds is not a "moving average" indicator... the paths are discrete adaptive support and resistance, where price interaction with the paths determine the probability of future price movements.
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In this example,
Left is 15Min chart with Heffae Cloud set to the 4 Hour Timeframe. The right chart is set to 4 Hour matching the indicator Timeframe.
You can see that within a single 4H candle, the price is interacting with the 4H paths in a obvious "validation - conformation - invalidation" way, with the 15min candles.
This view lets you make precise entries / exits on path interactions like this one. Instead of waiting for the candle structure on indicator timeframe to confirm the path interaction, this strategy allows you to see how the price is dancing with the indicator in a much more detailed way. Using this strategy will completely eliminate false signals, as a trade entry from path conformation can be quickly reversed if that path is violated.
The v1.02 update maintains the cloud path geometry as well as predictive (leading) offset when "Use Chart TF" is turned OFF:
Enter the timeframe Heffae Clouds should indicate in "Non-Chart TF" - This must be done in minutes, so 240 = 4H, 360 = 6H, 480 = 8H and so on.
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RT Supports HOLDING 4H+8H Heffae Clouds; Long with TIGHT STOPBitcoin's ability to maintain bullish momentum comes down to a few lonely support lines.
Let's look at the Rejections and the bearish case first:
Daily had another rejection on the SAME LINE that had been rejected before on the cloud:
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However, we know that when the same resistance or support path is hammered over and over, as long as price has close supports underneath for refueling another move, that resistance / support will be violated and price will push past it, sometimes re-testing the inverse (Support if Resistance etc.) Another thing to note is that the daily path that has been hammered is MOVING UP QUICKLY at this time, so even if it continues to be resistance, that level is much higher.
The 4 Hour has a massive series of rejections on the bottom of the cloud, which is a CLASSIC Heffae Cloud signal to get heg'd:
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All of the 6 Hour Real-Time supports have been violated and now function as resistance, as well as an offset 6Hr cloud rejection:
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The 8 Hour has a wick through realtime additive high (thin green line that becomes relevant):
HOWEVER! Now we start to see supports show up on the 8Hr realtime. Look at the below chart
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Now, for a more bullish case, the 2 Hour has support on the bottom of the cloud, which also aligns with realtime low support:
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Finally, the 3Hr gives us the most bullish of neutral outlooks of all time-frames. Broken support on the cloud, but realtime support holding as well as a re-emergence into the cloud as support. Note that once a cloud path has been violated, it's local strength is weakened.
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Make sure to give a thumbs up if you appreciate the analysis!
The Level to watch, 1D Heffae Clouds1D Cloud has been finding resistance on (thick) predictive inter-cloud line repeatedly after breaking through cloud bottom.
Now we are retesting this line and I believe we will break through / close above. This is a major line to cross, as it has been massively valid (price rejected!!) and price finding support on this line will be a major signal for continued uptrend.
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See 2Hour cloud support (top of 2Hour cloud is where I got long)
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Try setting Heffae Clouds Custom timeframe to 1440 (daily) and chart to 2Hour, 3Hour in order to identify when price crosses over this line and starts wicking / closing as support!
Heffae Clouds -1D Chop Zone, If close > SnR, 6880- 7190 TargetThe cloud shape and color change on the 14th indicate a big move based on the color change and upward turn of cloud shape.
After blowing through cloud bottom, it looks like the Daily cloud paths was fairly invalidated.... However, two things I failed to see when I posted the last idea "Possible Bottom of Daily Cloud Support" are fairly important and mean there is potential for the Daily Cloud to come back as a major price influence:
The inter-cloud paths were spread out, not tightly consolidated. This indicates a weak path-fitting and that price is less likely to find support/resistance on these paths.
The cloud color was weaker during the candle that dropped through, also indicating a weaker cloud path-fitting.
Currently it looks like the inter-cloud paths are functioning as tight SnR, so there will likely be some consolidation in this area.
The spacing of inter-cloud lines as well as the distance of Real-Time SnR indicate there will be CHOP for a few days, so I would hold off on taking positions until we are closer to the cloud influence prior to the 14th, or when you can start using Real-Time on shorter Time-Frames >>> (8H Real-Time LOW has been VERY STRONG!!!) <<< (be sure to look at prior interactions for trading ideas / rules... two consecutive 8H closes above Real-Time LOW would be a possible long signal)
Now that cloud color has changed to a stronger path-fit and inter-cloud paths are converging (somewhat) I expect to see valid interactions with 1D cloud.
Another possibility is breaking out cloud bottom, but then path-fitting cloud underside on an upwards run:
Keep a close eye on Real-Time SnR as well as shorter timeframes.
Message me for clarification on anything regarding Heffae Clouds.
* I am marking this idea as "Long" even though my entry depends on the price interaction with cloud paths...*
Possible Bottom of daily cloud support, Heffae Clouds DailyIf daily candle closes above cloud bottom, BTCUSD should find new support at this level on the bottom of the daily cloud at around 6480.
If this daily closes under, I would continue with a hedge or very low leverage short.
Need to wait for a candle close above cloud to long, and stop out / go short on any close under cloud.
I have closed all my shorts and am now SPOT LONG as well as taking spot positions in LTC, ETH, and XRP (why not :p)
If the daily BTCUSD candles close under cloud, I will close those positions, and look for short entry with a target of $5500
LONG TARGET (if close inside Daily Cloud) $7100
SHORT TARGET (if close below Daily cloud) $5500
Heffae Cloud TA / signal basics; cloud top violationCandle fails to find support on cloud path.
candle opening on other side of cloud top switches the path from support to resistance.
This Is not a short signal 100% of the time, but more often than not price will fall or have difficulty returning above after breaking that support path.
Sometimes, price will break through a cloud top path like the chart above, but then climb up the underside of it without breaking through the top. I call this "path fitting" and it makes interpreting signals difficult since the price continues to rise on the underside, cloud acting as resistance. When this happens, the direction price will eventually go depends on other factors, but cloud shape is the largest determiner of how things will play out. On a rising cloud path like the above chart, price rarely breaks out upwards to find support while the path is still rising.
usually, it will path-fit for a time and then break down. Always look to other time-frames for reference.
BTCUSD flirting with bearish path, Heffae Cloud 4H pathfittingCurrently 4H cloud top is acting as resistance. Price needs to close above 8190 (BitFinex) in order to emerge on the bullish side of 4H cloud.
In these situations, the price does tend to flip back-and-forth between channels before taking off strongly in either direction. |
NOTE -User pointed out that 4H cloud is GRAY meaning that it has very little influence on price.
4H Cloud top - Resistance until close > $8190 and then support - NOTE -User pointed out that 4H cloud is GRAY meaning that it has very little influence on price.
4H Cloud QRSI - Resistance (bounce zone) until close > $8323
4H QRSI - Support until close < $8100
The price break-down through 4H color-change was expected, but the strong inter-cloud support (also support on Daily real-time path) shows that the price is not necessarily resigned to the bearish channel. The next 8-12H are absolutely critical in determining which direction price will go long-term.
Keep an eye on the Cloud top, this is where the flirting between Support/Resistance will happen.
I AM FLAT right now!!!
Side Note:
It looks like market-making BTCUSD dominant influence shifting, different market influencers have gained an important leverage point in BTCUSD price movement. Recent path interactions show that the local trend in Bitcoin is now shifting and we should start seeing new patterns emerging in price over the next several weeks.
This means that trendlines, T/A and charting will be invalidated, predictive paths and cloud interactions will not be reliable until the predictive algo adapts to new price movement patterns. Hold on to your hats, I think crypto market is going for a ride!
qrsi supports, 4HR cloud interaction, fairly solid long setup.Looking at the upcoming 4HR cloud interaction & qrsi support levels, as long as the price stays above the 4HR cloud and above 0 on the qrsi indicator (4HR) this looks like a bullish continuation and I am fairly certain we will get another leg up from these levels.
If the price breaks underneath the cloud top and under 0 on the qrsi, the next support is -2 qrsi which will determine whether or not price continues in a bullish direction! I am in a position now, but will close very quickly if the price closes under 4hr cloud top.
UP WE GO FROM HERE, ACTUALLY (I was wrong)Using a different method for q-rsi discovery,
I added a predictive engine to the qrsi levels and found very interesting path fitting with totally different rules to the Heffae Clouds path fitting.
It will; take awhile to interpret these new-fangled indicators fully, but this paints a pretty damn clear picture right here.
I think we will shake-out some leveraged longs for a few candles, (day?) but this is looking Bull-Ish As Fawk
WhatchuThink???
Heffae Clouds + Heffae Quantum RSINew indicator in the pipeline, thought I would break it out for show & tell.
I am short.
COULD REVERSE AND CONTUINUE UP!!!
Qrsi stands for Quantum Relative Strength Index, and uses Heffae adaptive support/resistance maths as well as some other tricks to develop a "price theory" which functions as a type of relative strength within support and resistance channels.
How is this better than regular RSI?
Beacuse it shows support and resistance levels as whole numbers from -10 to +10. With discrete levels of overbought / oversold and the zero-point functioning as the basis of significant levels for the price, this can show divs more accurately than RSI could ever dream of.
How is this calculated?
The Qrsi uses the latest Pine-Script syntax update that allows optimized code to be ran on quantum computers at Oak Ridge National laboratory. ;p
The Quantum RSI you see here is plotted as candlesticks in order to have all four O,H,L,C values on the same oscillator without spaghetti. You can toggle between candles and a regular line for relative strength compared to support and resistance channels. Support and Resistance Values are QUANTIZED at levels 1,2,3,..5,7, etc.
Each whole number (1 thru 10) represents a calculated support or resistance value. You will see that the price often turns around on whole numbers, 4,5,7, etc.
Can also be used just like a classic RSI to spot divergances. It is MUCH better at showing divergences than a regular RSI.
Ground-breaking earth quaking awesome sauce.
In a nutshell, Heffae Qrsi displays the qrsi as the price level relative to the math, where Heffae clouds are the math displayed relative to price.
Now that I have this, do I need regular RSI anymore?
- No, not really. :)
I mean, is this really BETTER than rsi?
- Yes. Way better. It's complex, which doesn't necessarily make it better... but all the extra thinking compared to a classical RSI is so you don't have to.
Can I get the source code in order to see how it works?
- If you are a developer open to collab and willing to sign an NDA, PM me!
WAIT, WHERE IS THE LINK TO THIS INDICATOR?
- It's probably not done yet. lol. Look in the comments for links / updates, etc.
Bitcoin will try again- 8H Heffae Clouds analysis This is an analysis of Heffae Clouds on 8H chart.
All the lines drawn on these charts have already been painted and do not change. This is the predictive cloud matrix without selection and shading.
Let's have a look at the inside in a way that I've never posted before.
This is the cloud without shading or selection. These all predictive paths (no realtime)
Look at Feb 13th and the beginning of march.
Look at the fluctuations in some of the paths:
The memory of price violations in these areas impacts the likelihood of future price having the oppertunity to break through, or be influenced otherwise.
March 20th price was still influenced but not able to break through this channel
April 12th price found a way sideways in through most of the predicted resistance. It took a large volume pump to overcome this area.
I believe this is the same force we are currently against.
The last price drop fell along the predictive resistance, as it did June 3rd-4th.
Now we have the June 25th fluctuation, which could be the last chance BTC has for a good while of building any kind of strength.
However, I see this as a very good opportunity to get a hedge / short entry for the choppy waters ahead.
Lastly:
Crypto markets make you frown? Flip that Corn chart Upside Down!Crypto markets make you frown? Flip that Corn chart Upside Down!!!
Grab your flip flop's, sunscreen, and don't forget to pack your SHORTS!
Good Thing BitFinex rents scuba equipment for those qualified to dive!
Now, if we manage to get up and over this 8H Heffae Cloud Path:
To me, this means we have another shot at testing the Daily which we broke down from, right on the twist :/
If this 8H Cloud path stays resistance, down we go.
Bounce at 6.2K, and then we either get more bulltrap bullcrap just like the "double bottom " everybody bought at 12K, or, well, who knows... It's Bitcoin.
Trading the chop with zero drawdown. Heffae's Perfect Signals.The fundamental strategy for trading with Heffae Clouds is to use the real-time and cloud interactions as support / resistance.
All the colors, lines, and granular detail of the system is designed to assist in determining the validity of Support / Resistance drawn by the Predictive Clouds.
All paths drawn with default settings, the clouds are offset from real-time like Ichimoku. Basic Ichimoku comprehension carries over to trading with Heffae's clouds, however there are differences as you go deeper.
9H BTCUSD Short opportunity, 8H Heffae Cloud interactionTrade pending on interaction with Real-Time support and resistance.
Price is about to interact with 8H cloud, which has shown positive correlation with price until being violated recently.
Stops 7850
TakeProfit 6500
Open hedge until next interactions
Heffae USDJPY - Cloud path-fitting; interactions & analysis. 8HrFollowing the publication of the "Heffae USDJPY" educational video, I wanted to provide an example of longer time-frame interactions using unchanged indicator settings.
Heffae Cloud interaction & predictive path fitting
Heffae USDJPY - Cloud interaction & predictive path fittingHeffae Clouds functioning as adaptive support and resistance in FOREX markets. High validity path fitting, cloud color provides granular detail on path validity, constitution of paths use default maths with a higher offset.
This demonstrates the flexibility and power of Heffae Clouds. The ability to automatically adapt and produce high validity path-fitting for many different asset classes.
Bitcoin resistance levels, multiple timeframes Heffae CloudsThe last Daily Heffae's cloud analysis of the Daily said that if we break up out of the cloud, we would need to come back and retest the top of Daily cloud to confirm a bullish trend going forward.
Now we have broken out, but are at very strong resistance levels on the 4H and 8H timeframes, as well as Daily cloud showing price at realtime resistance.
I expect a retest of the Daily cloud top, where I will be placing bids for wicks and cancel the trade / abort if the daily closes under cloud after retest.
BTC ENTERING GREEN DAILY Granular Ichi Heffae Clouds BIG MOVE^^^BTC is entering the first green cloud of 2018. Many indications of a big move coming soon. A large number of crypto assets are also encountering the same twist on the daily. This is a pivotal time for the entire cryptomarketcap!
Heffae Clouds, is a granular indicator that draws predictive clouds, or paths that the price may follow with realtime and predictive paths. It is similar to ichimoku, but the big difference between Heffae's clouds and Ichi is the path-fitting formula.
Ichimoku is a very simple indicator that was developed in order to calculate with pen and paper back in 1969.
Heffae clouds has over 250 lines of code and uses complex arithmetic that requires heavy computation.
The vision of the Ichimoku is alive more than ever with Heffae clouds, Heffae Clouds is essentially "Ichimoku Modernized" with elegant formulas that fit paths based on the past behaviour of the asset, Instead of a high/low average over a period of time (ichi default 9 candles). Heffae's functions are complex yet elegant and simple in implementation, this indicator is not over-complicated or noisy.
The daily is looking strong after a solid bounce from support on 5/18 and survival of the dark red color slice between 5/19 and 5/20
The next color on the cloud is a gray/green (very slight green hue to the gray color, grey/red has a slightly red hue) , which indicates a weakening of the cloud's path-fitting. Price is more likely to violate the Support/Resistance lines when the color goes grey. This could be up or down.
The grey change also indicates the location of a cloud twist. the twist of the daily to a green cloud is the first green cloud since january 2018, and the price interacting with a daily green cloud is a first for 2018. This is a big deal, a pivotal point in the market.
Support density has increased by the intercloud lines merging along the bottom of cloud.
A twist when price is within the cloud:
If price within the cloud, price can find SnR within cloud. Price usually needs to first emerge and then retest the broken cloud support to confirm.
Look to other time frames for indications of a direction when price is within the cloud.
There are bearish signs from the 8Hour looming cloud:
However this does not mean price is going down. 8Hr shows an immediate resistance of 9000 and decreasing as time goes on. by the 23rd, cloud resistances are 8600 (fast) and 8760 (low). The 8Hr cloud also has a color change to grey,m meaning that it would be easier to break up through the cloud in this area.
Happy trading!
ETHUSD Fighting for a BIG MOVE, Heffae Clouds interactionsShowing Heffae's clouds predictive prowess on ETHUSD.
ETHUSD is fighting to break through this resistance level which is visualized by Heffae Clouds predictive paths. The Daily cloud top is functioning as strong resistance, and intercloud support (tight bands) are dropping fast, with realtime LOW as an intermediate support @~650.
Heffae Clouds, is a granular indicator that draws predictive clouds, or paths that the price may follow with realtime and predictive paths. It is similar to ichimoku , but the big difference between Heffae's clouds and Ichi is the path-fitting formula.
Ichimoku is a very simple indicator that was developed in order to calculate with pen and paper back in 1969.
Heffae clouds has over 250 lines of code and uses complex arithmetic that requires heavy computation.
The vision of the Ichimoku is alive more than ever with Heffae clouds, Heffae Clouds is essentially "Ichimoku Modernized" with elegant formulas that fit paths based on the past behaviour of the asset, Instead of a high/low average over a period of time (ichi default 9 candles). Heffae's functions are complex yet elegant and simple in implementation, this indicator is not over-complicated or noisy.
Here are some prior examples of Heffae Clouds path-fitting on ETHUSD:
The settings for ETHUSD are
45 peroids
Path Adjust:
10
-2
7
0
22
BTCUSD, Potential Long play. Heffae's clouds 1D interactionsThis is a potential bullish scenario on BTCUSD.
There is not much to support this on higher timeframes, so I would not give this a high probability of happening, however it would be valid within the Heffae Cloud path fitting.
Spread Bids 7710 - 7790
Set Stops 7450 -7510
If this does not play out, prior Doom situation still in play
Heffae's Clouds Introduction - Ichimoku Modernized - Part 4Part 4. Final video on settings, beta uses, setup & operation.
Part 3:
Part 2:
Part 1:
Heffae's Clouds Introduction - Ichimoku Modernized - Part 3Part 3, the "orange Bottom" more examples of realtime & cloud interaction.
