I haven't done one of these charts for crypto in a long time but its time to do one again.
Now this chart is a trend following chart, so with that logic this will be the focus:
- Identifying trends
- Why a trend is a trend
- When a trend forms
- how a trend forms
- as much data as possible
- trend progression
- killing noise
The chart has been set out to show the support and resistances, of former trends, progression and trend relation.
the interesting part of the chart is that there have been clear trends, and signs of trends reversing or forming. The yellow circles indicating the price dropping below the support of the 30 MA which has been a during trends since the beginning of BTC . The indicates that trends usually get started when progresses and spikes, is a story with the relative vs the absolute in terms of liquidity but for this chart we will mostly ignore that factor. the MA 50 is useful for death crosses and golden crosses on the chart to confirm new trends. Momentum of the RSI agrees with the price cross overs on the 30 MA which strengthens its trend identifying capabilities. last indication we had was a RSI divergence during the rise of up trend 2, something to watch for in the future.
A reminder of trends, trying to catch one before it has properly formed has the risk of getting whipsawed, that is a common risk of trading trends.
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