How to use EMA200?EMA200, also known as the 200-day Exponential Moving Average, is a widely used technical indicator in trading. It helps traders identify the overall trend and potential support or resistance levels in a particular security or market. Here's how you can use EMA200 in your trading strategy:
1| Understand the concept: The EMA is a moving average that assigns more weight to recent price data, making it more responsive to current market conditions. The EMA200 calculates the average closing price over the past 200 trading days and plots it on the chart. It is often considered a long-term trend indicator.
2| Determine the trend: By observing the price action in relation to the EMA200, you can determine the prevailing trend. If the price is consistently trading above the EMA200, it indicates an uptrend. Conversely, if the price is consistently trading below the EMA200, it suggests a downtrend.
3| Identify support and resistance: The EMA200 can act as a support or resistance level. During an uptrend, the EMA200 may provide support, meaning that if the price dips towards or touches the EMA200, it could be a potential buying opportunity. In a downtrend, the EMA200 may act as resistance, where the price could face selling pressure if it approaches or touches the EMA200.
4| Confirm trend reversals: When the price crosses above or below the EMA200, it can signal a potential trend reversal. A bullish crossover, where the price moves above the EMA200, may indicate the start of an uptrend. On the other hand, a bearish crossover, where the price drops below the EMA200, may indicate the beginning of a downtrend.
5| Combine with other indicators: While the EMA200 can provide valuable insights, it's recommended to use it in conjunction with other technical indicators or tools to strengthen your trading strategy. This may include additional moving averages, trendlines, oscillators, or volume indicators.
6| Practice risk management: As with any trading strategy, it's crucial to implement proper risk management techniques. Set stop-loss orders to limit potential losses and determine your target profit levels based on your risk-reward ratio.
Remember that no single indicator guarantees trading success, and it's essential to combine technical analysis with fundamental analysis, market sentiment, and other factors when making trading decisions. Regularly backtest and refine your strategy based on market conditions and your own experience.
Sma
A Possible Turn for Bitcoin? The Slow Bleed ExplainedBitcoin is showing signs of weakness after an impressive start to the year. BTCUSD has increased precisely by 100% from its low on November 21st to its high on April 14th. Coincidentally, April 14th was also the exact same date that Bitcoin hit its first new all-time high after the Covid low. A 50% correction followed this peak going into the summer months. This time, it looks like history might be repeating itself, which raises the following question: Are we seeing the early signs of a Bitcoin bleed?
Why This Might Be the Case
We can trace parallels to the 2019 bull run, which saw Bitcoin rise explosively before entering a slow bleed. This descent was triggered when the 30-day Exponential Moving Average (EMA) crossed below the 60-day EMA and the daily price closed below the 20-week Simple Moving Average (SMA). Now, these same indicators are flashing red flags again.
Further insight can be gleaned from monthly Heikin Ashi candles, which help to eliminate market noise and clarify trends. We recently closed a green Heikin Ashi candle, making it a lower high. This is important because the 2019 bull run ended after we got the first green lower high following 4 consecutive green higher highs.
If we shift our attention away from 2019 and concentrate on the current bull run, it becomes apparent that Bitcoin's rise can largely be attributed to its absorption of liquidity from the broader cryptocurrency market. This idea is supported by the strong uptrend in Bitcoin's dominance, which seems poised for an upward breakthrough. This trend, along with a shift of liquidity towards perceived safer assets like Bitcoin and Ethereum, strengthens this assumption.
Bitcoin's dominance appears even stronger when we exclude stablecoins from the calculation.
A glance at the altcoin market (excluding stablecoins) supports this view. The altcoin market is currently only up by 20% since its low, while Bitcoin still sits at 65% from its low. This reinforces the idea that people are converting their altcoins into Bitcoin and Ethereum.
So where is the rest of the liquidity coming from? Predominantly from the stablecoin market, which has decreased by 35 billion dollars since May 2022. A reasonable assumption would be that a significant portion of this decrease has flowed into Bitcoin and Ethereum, considering their continuous outperformance since May 2022.
The Potential Liquidity Crunch
Here's the issue: there's a lack of fresh liquidity entering the cryptocurrency market. The current bull run seems to be driven more by existing liquidity (from altcoins and stablecoins) than new inflows. As this existing liquidity dwindles, Bitcoin might struggle to sustain its rally, potentially leading to several months of stagnation until new capital enters the market.
The Role of the Federal Reserve
Whether new liquidity will enter the market depends heavily on the Federal Reserve's stance on monetary policy. An environment of cheap liquidity is Bitcoin-friendly, attracting investors to riskier assets in search of high rewards. For a substantial bull run to be sustained, a significant influx of fresh capital from new investors is crucial.
So when is the Fed going to stop draining liquidity out of the economy? The answer isn't straightforward and depends largely on efforts to control inflation expectations. So far, inflation expectations have been trending lower, suggesting a possible pause in rate hikes followed by rate cuts. This could potentially lead to the initiation of Quantitative Easing and therefore an increase in net liquidity. Such a scenario would definitely be beneficial for all assets, including Bitcoin. However, this appears to be highly unlikely in the near future.
Additional Factors to Consider
Despite the possible lowering of interest rates, investors may still remain cautious, since this will imply the steepening of the yield curve. This has historically always triggered a recession, which is always accompanied by a sharp decline in risk assets.
Furthermore, if the overheated NASDAQ experiences a cooldown, it could potentially impact the overall market, including cryptocurrencies. Bitcoin typically shows strong correlation with the NASDAQ during downtrends.
Lastly, the DXY, or U.S. Dollar Index, could also pose a risk if it breaks its current downtrend and instead starts climbing higher. It's crucial to remember that the DXY is inversely correlated with Bitcoin's price movements. This suggests that a surge in the dollar's strength could precipitate a sell-off in riskier assets, such as cryptocurrencies.
Conclusion: A Time for Caution and Opportunity
The signs point towards a possible crypto slowdown until capital becomes more available. Such a sideways market scenario might be detrimental for the impatient investor, but it could present great opportunities for the patient long-term investor.
With this in mind, if you choose to maintain a stake in crypto, Bitcoin should likely be your safest bet due to potential severe impacts on the altcoin market from a crypto liquidity crunch. This could lead to a decline in most Bitcoin pairs, including the ETHBTC pair, which has stagnated for over two years and lacks compelling reasons to maintain its current elevated level.
Predicting the future remains a challenging task. However, considering the current high-risk climate, it might be prudent to maintain a cash reserve on hand, consider increasing your Bitcoin holdings, and perhaps ponder over establishing a new position in Ethereum over the upcoming months.
Disclaimer: This article is intended for informational purposes only. It is not intended to be investment advice. Every investment and trading move involves risk, and you should conduct your own research when making a decision. Past performance is not indicative of future results.
Choosing the Right Moving AverageMastering Moving Averages: A Comprehensive Guide to Choosing the Right One for Your Trading Strategy
Moving averages are among the most widely used technical indicators in trading. They serve as a simple and effective way to identify trends, support and resistance levels, and potential entry and exit points for trades. With numerous types of moving averages available, determining the best fit for your trading strategy can be a challenge. In this comprehensive guide, we will delve into the various types of moving averages, their strengths and weaknesses, and when to use them to maximize your trading profits.
Simple Moving Average (SMA)
The Simple Moving Average (SMA) is the most basic type of moving average. It calculates the average price of an asset over a specific time period, typically 20, 50, or 200 days. The SMA smooths out the price data by creating a constantly updating average price, providing a clear picture of the asset's direction of movement.
I personally use the SMA for long-term trading strategies because it offers a more stable picture of the asset's direction of movement. The SMA is also useful in identifying potential support and resistance levels, which are critical indicators for traders. However, the SMA can be slow to respond to changes in price, which can result in missed opportunities for short-term traders.
Advantages of SMA
1. Easy to calculate and understand.
2. Provides a stable picture of the asset's direction of movement.
3. Useful in identifying potential support and resistance levels.
Disadvantages of SMA
1. Slow to respond to changes in price.
2. Can lag behind the current price action, leading to missed opportunities.
Exponential Moving Average (EMA)
The Exponential Moving Average (EMA) is a more complex type of moving average that places greater weight on recent price data. This weighting provides the EMA with a more immediate response to price changes than the SMA, making it a popular choice for short-term traders. The EMA is calculated by taking the weighted average of the asset's price over a specified time period, giving more weight to recent prices.
Traders use the EMA for short-term trading strategies because it offers a more immediate response to price changes, which is crucial for short-term trades. The EMA is also useful in identifying potential price reversals, support and resistance levels, and momentum. However, the EMA can be more volatile than the SMA, which can lead to false signals and increased risk.
Advantages of EMA
1. Provides a more immediate response to price changes.
2. Useful for short-term trading strategies.
3. Helps identify potential price reversals and momentum shifts.
Disadvantages of EMA
1. Can be more volatile than the SMA, leading to false signals.
2. May require more complex calculations than the SMA.
Weighted Moving Average (WMA)
The Weighted Moving Average (WMA) is another type of moving average that places a greater weight on recent prices. Unlike the EMA, the WMA assigns a weight to each price point based on its position in the time period. This means that the most recent prices receive the highest weight, with each price point receiving a progressively lower weight as you move back in time.
Traders use the WMA for short-term trading strategies when they want a more sensitive indicator than the SMA. The WMA is also useful in identifying potential price reversals and support and resistance levels. However, the WMA can be more volatile than the SMA, which can lead to false signals and increased risk.
Advantages of WMA
1. Provides a more sensitive indicator than the SMA.
2. Useful for short-term trading strategies.
3. Helps identify potential price reversals and support and resistance levels.
Disadvantages of WMA
1. Can be more volatile than the SMA, leading to false signals.
2. equires more complex calculations than the SMA.
Smoothed Moving Average (SMMA)
The Smoothed Moving Average (SMMA) is a type of moving average that applies a smoothing factor to the price data, resulting in a smoother curve. The SMMA places an equal weight on all price data, with the smoothing factor determining the weight given to each data point.
Traders use the SMMA when they want a smoother curve to analyze the asset's trend. The SMMA is useful in identifying potential support and resistance levels and entry and exit points. However, the SMMA can be slow to respond to changes in price, which can lead to missed opportunities for short-term traders.
Advantages of SMMA
1. Provides a smoother curve for trend analysis.
2. Useful in identifying potential support and resistance levels and entry and exit points.
3. Less sensitive to short-term price fluctuations.
Disadvantages of SMMA
1. Can be slow to respond to changes in price.
2. Not as suitable for short-term trading strategies.
Which Moving Average Should You Use?
The type of moving average you should use depends on your trading strategy and time frame. If you are a long-term trader, you may want to use the SMA or WMA, as they provide a more stable picture of the asset's direction of movement. If you are a short-term trader, you may want to use the EMA or WMA, as they provide a more sensitive indicator of price changes. Additionally, if you are looking for a smoother curve to analyze, the SMMA may be the best option.
It is essential to note that moving averages should not be used in isolation. They should be used in conjunction with other technical indicators, such as oscillators or volume indicators, to confirm potential buy and sell signals. It is also crucial to consider the market conditions, such as volatility and liquidity, when choosing a moving average for your trading strategy.
How to Combine Moving Averages for Better Trading Signals
1. Use multiple timeframes: Employing moving averages from different timeframes can help you identify both short-term and long-term trends, as well as potential entry and exit points.
2. Use multiple types of moving averages: Combining different types of moving averages, such as the SMA and EMA, can help you identify trend reversals and filter out false signals.
3. Apply other technical indicators: To confirm the signals provided by moving averages, use additional technical indicators like the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD), or the Bollinger Bands.
Strengths and Weaknesses of Moving Averages
Each type of moving average has its strengths and weaknesses, depending on the trading strategy and time frame. Here is a summary of the main differences between the four types of moving averages:
1. SMA: provides a more stable picture of the asset's direction of movement, but can be slow to respond to changes in price.
2. EMA: provides a more immediate response to price changes, making it a popular choice for short-term traders, but can be more volatile than the SMA.
3. WMA: assigns a weight to each price point based on its position in the time period, providing a more sensitive indicator than the SMA, but can be more volatile than the SMA.
4. SMMA: applies a smoothing factor to the price data, resulting in a smoother curve, but can be slow to respond to changes in price.
It is important to understand the strengths and weaknesses of each type of moving average to make an informed decision when selecting a moving average for your trading strategy.
Conclusion
Moving averages are a powerful tool in a trader's arsenal, but choosing the right type can be challenging. The SMA, EMA, WMA, and SMMA each have their advantages and disadvantages, and the one you choose should depend on your trading strategy and time frame. By combining moving averages with other technical indicators and considering market conditions, you can maximize your trading profits.
As a trader with experience in using various technical indicators, I've found moving averages to be quite helpful in identifying trends and potential entry and exit points. However, despite the usefulness of moving averages, I personally prefer indicators that use linear regression. The reason for my preference is that linear regression-based indicators, such as the "Regression Envelope MTF", take into account the slope of the trend, rather than assuming that the trend is linear. This means that the bands will adapt to the slope of the trend, providing more accurate signals in trending markets.
For instance, I typically use the "Regression Envelope MTF" (one of my indicators that I have just recently published) on the daily chart with a parameter setting of 250 periods. This allows me to quickly see where the price is positioned relative to the past year's trend. I find this approach to be particularly insightful and beneficial for my trading decisions.
Remember to always use caution when trading, and never risk more than you can afford to lose. It is also essential to continue learning and refining your trading strategies to stay ahead of the curve and become a successful trader.
A bearish and Bullish Outlook On BTCUSDThis is a friend chart that has a bearish outlook for potention reversal or Crash to 2018 Lows
Prentending that Btc has a 16 year Cycle where each 8 years we can take previous cicles lows
Which mean 2026 bear market could be really drastikkkk
But let keep our Pants tight and see if BTC is about to make a breakout like in May 2019
While this current cycle show similarities with the 2019 Btc Time Cycle
The oods favor the Bulls but the chart could be setting the biggest bull trap or a second level bear trap
DYOR
This is not a trade advice or signal
The 5-Indicator Technical FusionThe Hidden Gem of Market Strategy: The 5-Indicator Technical Fusion
Ever felt like you've hit a gold mine when you discovered an ingenious, yet underrated, financial strategy? Buckle up, because today, we're diving deep into the world of technical indicators to unveil a mind-blowing market strategy that will leave you speechless. This strategy, called the 5-Indicator Technical Fusion, harnesses the power of five complex indicators, but we're going to focus on the one that sits at the perfect average. Get ready to unlock a whole new level of market mastery.
The 5-Indicator Technical Fusion:
The 5-Indicator Technical Fusion combines five advanced technical indicators that, when used together, create an unparalleled trading strategy. The five indicators are:
1. Schmancy Fibonacci Retracement Oscillator (SFRO)
2. Quantum Volume Expansion Index (QVEI)
3. Time-Traveling SMA (TTSMA)
4. Galactic Bollinger Bands Envelope (GBBE)
5. Psychedelic Relative Strength Index (PRSI)
6. Each of these indicators brings a unique perspective to market analysis, but the real magic happens when they're combined. However, we're here to talk about the one that hits the sweet spot right in the middle: the Time-Traveling 7. Moving Average (TTSMA).
Time-Traveling Moving Average (TTSMA) – The Hidden Gem:
The TTSMA is a revolutionary indicator that goes beyond the limitations of traditional moving averages. It uses quantum algorithms to simulate market behavior, projecting future price trends based on historical data. By analyzing the past, the TTSMA can predict future price movements with an astonishing degree of accuracy.
Why the TTSMA Rocks:
1. Predictive Power: The TTSMA's ability to foresee market trends before they happen gives traders a significant advantage in making informed decisions.
2. Time Efficiency: The TTSMA saves traders precious time, as it quickly identifies potential entry and exit points without the need for tedious manual analysis.
3. Risk Management: The TTSMA helps traders mitigate risk by providing insights into potential price fluctuations, allowing them to adjust their strategies accordingly.
The Secret Sauce: Averaging the 5-Indicator Fusion:
Although each of the five indicators in the Technical Fusion is powerful on its own, the true strength of this strategy lies in their combined power. To unlock the full potential of the 5-Indicator Technical Fusion, traders should use the TTSMA as the central pivot point while incorporating the insights provided by the other four indicators.
The 5-Indicator Technical Fusion, with the Time-Traveling Moving Average as its core, is a groundbreaking and largely undiscovered market strategy that offers traders unparalleled predictive power, time efficiency, and risk management. So, next time you're looking for an edge in the financial markets, don't forget to explore the hidden gem that is the TTSMA. You won't be disappointed.
Bearish Divergence on Daily BTC Chart and Channel ResistanceIf we look at the current situation, we are faced with an unexpected rise in the BTC table, considering both the USA inflation data, the global markets and the US Dollar Index .
We've come to the resistance zone of an already rising channel , as if that wasn't enough, there is a weekly period death cross presence. In addition, there was a serious negative mismatch between the price and the relative strength index in the daily timeframe .
Considering these data, it would not be surprising if the price tries the channel subband $18.5K from this point.
MOVING AVERAGES MADE SIMPLE Moving averages are commonly used to analyze and forecast trends in financial data. There are several types of moving averages, including:
Simple Moving Average (SMA): This is the most basic type of moving average. It calculates the average price of a security over a specified number of periods.
Weighted Moving Average (WMA): This type of moving average assigns a weight to each period's price, with more recent prices given greater importance.
Exponential Moving Average (EMA): This type of moving average puts greater weight on more recent prices and adjusts the weighting based on the volatility of the prices.
Smoothed Moving Average (SMMA): This type of moving average is similar to the EMA but uses a different formula to calculate the weighting.
Hull Moving Average (HMA): This type of moving average uses weighted averages to reduce lag and improve responsiveness to price changes.
The choice of moving average type depends on the specific application and the trader's preference.
EXPLANATION ON HOW EACH WORKS.
Simple Moving Average (SMA): Imagine you have a toy car that you play with every day for a week. At the end of each day, you write down how far the car traveled. The simple moving average is like adding up all the distances the car traveled and dividing by the number of days you played with it. This gives you an average distance the car traveled each day.
Weighted Moving Average (WMA): Now, imagine you have another toy car that you play with every day, but you like to give more importance to the distance it traveled on the most recent day. The weighted moving average is like giving more weight, or importance, to the distance the car traveled on the most recent day when calculating the average.
Exponential Moving Average (EMA): The exponential moving average is like the weighted moving average, but it puts even more importance on the most recent day's distance. This means that the average changes more quickly when there are big changes in the price.
Smoothed Moving Average (SMMA): The smoothed moving average is like the exponential moving average, but it uses a slightly different formula to calculate the average. It's a way of smoothing out the bumps in the price and making it easier to see the trend.
Hull Moving Average (HMA): The Hull moving average is like the smoothed moving average, but it tries to reduce the time lag between the price changes and the moving average. It's like having a toy car that responds more quickly to your movements when you're controlling it with a remote.
So those are the different types of moving averages! They all have different ways of calculating the average price over time, and they can be useful for different things depending on what you're trying to analyze.
CROSSING OF MOVING AVERAGES
The crossing of moving averages is a popular technical analysis tool used to identify potential changes in the direction of a trend.
A moving average is calculated by taking the average price of a security over a certain period of time. Traders often use two moving averages, one short-term and one long-term, to look for potential changes in the trend. When the short-term moving average crosses above the long-term moving average, it is called a "golden cross," which is a bullish signal that suggests the price may be moving higher. Conversely, when the short-term moving average crosses below the long-term moving average, it is called a "death cross," which is a bearish signal that suggests the price may be moving lower.
Here's an example to help explain: Let's say we have a 50-day moving average and a 200-day moving average. If the 50-day moving average crosses above the 200-day moving average, it's a golden cross, indicating that the short-term trend is turning bullish, and it could signal a potential upward price movement. Conversely, if the 50-day moving average crosses below the 200-day moving average, it's a death cross, indicating that the short-term trend is turning bearish, and it could signal a potential downward price movement.
The crossing of moving averages can be used in conjunction with other technical indicators and analysis to help traders make more informed decisions when buying or selling a security. It's important to note that no indicator is foolproof, and traders should always consider other factors such as market conditions, fundamental analysis, and risk management before making any trading decisions.
INFLICTION POINT VS CROSSOVER
An inflection point is a point on a graph where the curvature, or shape, of the line changes. It is a point of transition between a curve that is bending upwards and one that is bending downwards, or vice versa. In other words, it's a point where the rate of change of a function changes from positive to negative or vice versa.
On the other hand, the crossing of moving averages is a technical analysis tool used to identify potential changes in the direction of a trend, which is based on the relationship between two or more moving averages.
While the crossing of moving averages may sometimes coincide with an inflection point, they are two distinct concepts.
HOW YOU SHOULD USE MOVING AVERAGES
🔸Trend identification: Moving averages can help traders identify the direction of the trend. For example, if the price of a security is consistently trading above a moving average, it can indicate an uptrend, while trading below the moving average can indicate a downtrend. This information can be useful in determining entry and exit points for trades.
🔸Support and resistance levels: Moving averages can also help identify potential support and resistance levels. In an uptrend, the moving average can act as a support level, while in a downtrend, it can act as a resistance level. Traders can use these levels to help determine their risk and reward when placing trades.
🔸Momentum indicators: Moving averages can be used as momentum indicators to help identify the strength of the trend. A short-term moving average crossing above a long-term moving average can indicate bullish momentum, while a short-term moving average crossing below a long-term moving average can indicate bearish momentum.
🔸Trading signals: Traders can use crossovers of moving averages to generate buy and sell signals. For example, a bullish signal is generated when a short-term moving average crosses above a long-term moving average (golden cross), while a bearish signal is generated when a short-term moving average crosses below a long-term moving average (death cross).
🔸Moving averages can be used to clearly see trend waves by smoothing out price data over a specified period of time. This can help traders identify the direction of the trend and the strength of the momentum in the market.
When using moving averages, it's important to consider other factors such as market conditions, fundamental analysis, and risk management. Traders should also experiment with different types of moving averages and time periods to find what works best for their trading strategy.
Where Will the Pullback on STX End?Stacks (STX) has been one of the best-performing coins on the market this year. The token soared by nearly 500% from January 1st to its high of $1.31 only 18 days ago. However, like most cryptocurrencies, STX is now experiencing a pullback. In this analysis, we'll take a closer look at what's happening with STX and what investors can expect in the coming weeks.
What is STX? Stacks is a Bitcoin layer for smart contracts, allowing decentralized applications to use Bitcoin as an asset and settle transactions on the Bitcoin blockchain. It unlocks $500B in BTC capital and has knowledge of the full Bitcoin state, with transactions automatically hashed and settled on the Bitcoin L1. Stacks blocks are secured by 100% Bitcoin hashpower, making it difficult for hackers to re-order transactions.
STX managed to break above the $1.00 resistance level that was previously identified in our analysis. However, it was unable to hold the price above this key level, so now it's coming back down. STX’s inability to sustain its price above resistance may indicate that the price level was too high for the market at the moment to sustain.
Where does the pullback end?
While STX is going through a pullback, the 100 Simple Moving Average (SMA) may halt the downturn. The 100 SMA acts as mobile support, preventing the price from falling below it in most cases. If the 100 SMA breaks, the next support level is around $0.50.
It's essential to remember that the current pullback is a normal occurrence in the cryptocurrency market. After massive gains, most cryptocurrencies tend to experience a correction. Typically, coins that start a bull run strongly are the ones that advance the most overall. As such, investors should keep an eye on STX for the potential for another bull run coming in 2024-2025.
Bottom Line: Stacks (STX) has been a high-performing cryptocurrency this year, but like all cryptocurrencies, it's experiencing a pullback. However, this is a normal occurrence in the crypto market, and investors should keep a close eye on the support levels and moving averages.
Bitcoin PA and 50SMAI have posted this idea before but it seems it has just been confirmed (for the moment)
The number of days PA spent below the 50 SMA since ATH is 434 and that is identical to the PA from 2013 fter that ATH. So similar in fact that PA came back up and tested the 50 as resistance 84 days after it went under on both occasions.
Not only this but PA went under the 50SMa 266 days after the ATH on Both occasions also
And so now, as we csn see on the Ghosted PA on the current chart, PA has also followed the same trajectory near enough now that the resent
breakout is damn near on top of those candles.
Does this mean that PA will continue to follow ? NOPE but it maybe worth watching what happens when we break away from this as the Worlds fundamentals are very different from 2013 and will have an effect, maybe for the bigger gains ?
Aways trade safly and with a plan for both Bulls and Bears
Bitcoin and SMA time periodsBit of Data- Bitcoin USD index
Left to Right
50 SMA (RED) goes under 100 SMA (BLUE) for 413 days
Next time is for 294 days, Shows greater sentiment
50SMA crosses back over 100 for 1001 days before dropping below again on both occasions. Many reason why this could have happened but it just adds tp the ever growing "Patterns" that BTC PA makes.
50SMA currently below 100 again but this time it has also crossed below 200 ( YELLOW). This has NEVER happened before and shows the huge pressures that Bitcoin PA has been under from Fundamentals in recent times
It has however, managed to show that it is still a force with life, however, it has a huge hurdle to cross still but the fact that the banking industry is struggling, and it is, does give Bitcoin some backing.
The next 12 months are going to be VERY interesting in many ways
Bitcoin is making a come back and has crossed back over the 200SMA and this will be reflected in the MA's in time. It is the 2nd half of 2023 that will be the real test for Finances in both Crypto and TradFi
DYOR
SPY losing momentum 30mHappy day for all my swing trades out there! :) Now we see finished the day at a key level as we ultimately are on a sloppy downtrend. I expect to see a move downwards by our SPY friend back into support levels around the 384.50 mark. This support level has been tried many times now which may seem as a reliable bounce level, but we gotta remember it just means this floor is being weakened everytime. SMA20/50 are to stay under the 200 for bit longer. If we break down we can expect to see 378 soon. Stay safe and strap up B)
NY: EUR/JPY BOBBI - MOMENTUMTaking a quick market execution long on EJ following a break of our RSI moving average with confidence that EUR is showing strength and JPY weakness across the board. Used our playbook setup "BOBBI" (Break Out Break Back In) with momentum as our entry criteria. Asia and London have treated us well, lets see what NY has in store
A trifling observation.Is it possible to provide an indication that pre-empts the classic "death cross"?
Traders use different systems to judge the market outlook on patterns, as well as an important indication for them.
It is perfectly normal that someone can be wrong, and someone will be lucky to read the market correctly.
This post is about anticipatory indication and prejudice. If you open the articles on moving averages,
you can read that the exponential Moving averages (EMAs) are preferable on low timeframes up to a minute chart,
but they are not but it's recommended for the weekly chart.
Whereas it is recommended to use SMAs on longer timeframes.
OK, I thought. But why? Who has checked it? A price is a price, in itself it only says that someone has offered an asset
at a certain price, and someone bought at that price. But the market trend requires more confirmation of transactions through volumes.
The price alone cannot tell you what the market has decided. And that is why I made this comparison. MA 50/200 (white and blue line)
versus EMA 50/200 (orange and purple) + VFI LF (volume flow indicator).
Hypothesis:
EMAs are valid for 1 week timeframe, the exponent is not suitable for this timeframe is a preconception.
MA lags in indicating the signal, but you need to know the trend of the volume, for which you need an indicator like VFI LF.
In the case of unidirectional signals EMA 50/200 and VFI LF you can make a deal without waiting for the signal MA 50/200.
Assertion:
Bitcoin is in a bear market and no reversal has occurred.
The bounce at the beginning of the year was intended to test crossed possible area of the weekly SMA moving averages.
But because of death cross on EMAs already on the 9th of January, it also puts selling pressure.
And here the Volume Flow Indication is an important aid.
See, the VFI has two pale lines besides the volume flow line itself,
it's a fast and slow MA of volume (but it's MA of volume, not of price!),
and on these lines you can also see golden and death crosses.
Look closely, in the history of Bitstamp trading (the longest trading history of Bitcoin)
there have been exactly 3 such crosses by volume indication on weekly chart.
Two bearish and one bullish.
The last bearish cross on the MA of volume flow occurred about a month before the cross at EMA 50/200 price.
December 12...
As a result:
Two bearish pre-emptive signals versus one classic "textbook" one.
My bet is that there will not be a upbounce.
There will be an 85% retracement level from the peak and a consolidation at the bottom.
Waiting for a reality check in this race.
My bet is that we are in a bear market.
BTC : 3Day Heikin-Ashi Log + 1Day 300 SMA + Fib ChannelHere we take a look at BTC heikin-ashi candles on a 3 day timescale,
the 1 day simple moving average with a length of 300,
and a fibonacci channel,
all on the logarithmic price scale.
Of note, is the candle behavior in relationship to the 300 SMA,
before and after BTC reaches its' peak during the 2013 and 2017 bullruns,
and how that behavior can be analyzed and applied to the current bull run.
We see that leading up to the 2013 peak, as well as the 2017 peak,
BTC stays above the 300 SMA as the price rises.
We also see that after both of the 2013 and 2017 peaks,
BTC drops below the 300 SMA :
Now, if we look at our current price action,
we can see that BTC has dropped and hit the 300 SMA,
and has managed to stay above it :
If we look at April 2013, we see BTC came close to hitting the 300 SMA after a significant peak,
but it continued to rise into late 2013, when it finally concluded its' bullrun,
after which, BTC did drop below the 300 SMA :
One may conclude that if BTC drops below the 300 SMA during this current bull run,
we can assume that the current bull run is over,
and it may be some time before the we see another bull run.
If BTC manages to stay above the 300 SMA,
we can assume that the current bull run will continue on (like it did in summer 2013)
most likely until the end of the year,
and reach another new ATH.
Thanks for checking out the chart!
Feel free to like and/or comment... it is much appreciated.
// Durbtrade
American Airlines keeps rising - AnalysisAmerican Airlines' stock kept rising in the intraday levels, while buoyed by piercing the downward trend line recently in the short term, while buoyed by trading above the 50-day SMA, with positive signals from the RSI despite reaching overbought levels.
Therefore I expect more gains for the stock, targeting the resistance of 15.70, provided it holds above the support of 13.20.
AT&T driven lower by current resistance - AnalysisAT&T's stock (T) declined in the intraday levels, after the resistance of 19.52, while the stock tested the downward short-term resistance line, amid attempts to gather momentum to recover anew, with positive support from the 50-day SMA, coupled with positive signals from the RSI.
Therefore I expect the stock to return higher, targeting the resistance of 19.52 anew.
Is CHZ About to Start a New Bull Run?CHZ (Chiliz) is currently at support and appears to be trying to bounce back. What are the chances it will succeed? Let’s find out!
The details: CHZ lost almost 90% of its value this year from its all-time high of $0.95. While this may sound like a lot, it is pretty common in the crypto market, especially when it comes to altcoins. Even Bitcoin lost around 86% of its value at one point.
Bull Run Ahead?
CHZ is currently priced at $0.11 as of January 6, 2023, and is very close to its 2022 low of $0.080, where we find the major support level. Support and resistance levels are not exact price points, but rather price areas with some room for interpretation. If a coin has bounced once from $0.085, the next time, it can also bounce from $0.080. In this current swing low, CHZ has reached $0.0970, which is in line with the support level, which ranges (more or less) from $0.10 to $0.09.
CHZ has started pushing up quickly and is already showing signs of making a V-shaped recovery. The next stop is the 25 exponential moving average (EMA), which has been a pretty accurate mobile support and resistance. CHZ would need a break and close above the 25 EMA for the rally to continue.
If a bull run commences, then the next resistance level stands between $0.26 and $0.29, which would be a 150% increase from the current price level. We have a minor resistance around $0.16, which is 40% higher than the current price, making a decent potential profit for this scenario.
Looking Ahead: While many signs point to CHZ starting its bull run, we still need to be wary. CHZ showed signs in May 2022 that it was going to make a quick recovery, before plunging back down and finally recovering in July. Therefore, it may not be the best idea to enter with all of your funds, but rather a portion of it with the potential to enter more later on.