This TA Indicator Proves Bitcoin IS Going Higher!
See that little blue cross under the last green candle, right around the 6000 level? (You might have to push the arrow for moving the chart forward to see it a little better. Tradingview placed it right over the last candle.) That is the Parabolic SAR indicator. It’s an important reversal signal. If you look at the little blue crosses on the chart, you can see that they usually follow a trend and indicate a change in direction in the short term and its follow through...key word being ‘usually’.
There are times when the Parabolic will be short lived and reverse the other way again, usually in one or two candles. This happens a lot in shorter time frames as well as in volatile markets. Personally I think we have exhausted a lot of the noobies who sold out and of course bought in at higher and higher prices which created the volatility. Still I will watch this indicator closely, but I can tell you that it’s appearance on THIS candle brought a smile to my face, especially since the other TA has been in place for a rise for about a week now.
You can see further examples of it “following” the trend by scrolling backwards in time on the chart.
There are other instances when the Parabolic is a divergence indicator which we can also see an example of on the chart. You can see a clear example of this at the top of the market on this chart as the SAR slides down and the candles keep rising higher to their peak ATH. I do not however gives this divergence method as much credence as I do when I see it on a stochastic.
MACD Histogram is also now above zero which means momentum is picking up and rising to the upside. Another great indicator.
We should see 9200 in short order. I am still expecting a rise to the 50 day MA which is major resistance, currently between 12k and 13k. 10k will be a psychological resistance level as well.
If you check my other charts on TradingView, you’ll see I’m pretty accurate in my calls. My last chart called the turn and goes into a lot more detail. You might enjoy checking it out.
There are times when the Parabolic will be short lived and reverse the other way again, usually in one or two candles. This happens a lot in shorter time frames as well as in volatile markets. Personally I think we have exhausted a lot of the noobies who sold out and of course bought in at higher and higher prices which created the volatility. Still I will watch this indicator closely, but I can tell you that it’s appearance on THIS candle brought a smile to my face, especially since the other TA has been in place for a rise for about a week now.
You can see further examples of it “following” the trend by scrolling backwards in time on the chart.
There are other instances when the Parabolic is a divergence indicator which we can also see an example of on the chart. You can see a clear example of this at the top of the market on this chart as the SAR slides down and the candles keep rising higher to their peak ATH. I do not however gives this divergence method as much credence as I do when I see it on a stochastic.
MACD Histogram is also now above zero which means momentum is picking up and rising to the upside. Another great indicator.
We should see 9200 in short order. I am still expecting a rise to the 50 day MA which is major resistance, currently between 12k and 13k. 10k will be a psychological resistance level as well.
If you check my other charts on TradingView, you’ll see I’m pretty accurate in my calls. My last chart called the turn and goes into a lot more detail. You might enjoy checking it out.
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I should also add that 9200 will confirm a bullish trend, however, I would really like to see the 50 day MA reverse its downward slope and start angling up. Once that happens we just hold on for the ride to new ATH’s.
