Weber-Fecher law is a psychological theory of perception in which the brain perceives logarithmic changes on a linear scale. For instance, if you were holding a 1 versus 2-pound weight, the difference is quite noticeable. However, this difference is much harder to detect when one is holding a 100 vs 101-pound weight despite the difference being the same... simply, 1 pound seems to be nearly a meaningless change when the weight gets heavy. Similarly, while paying an extra $10 for BTC seems like a lot when it trades for $300, this difference is negligible at $30,000. Therefore, to optimally capture market perception, a logarithmic scale proves useful.
Currently, BTC potentially finds itself inside of a Darvas box popularized by Nicholas Darvas (although his time scales were different). Simply, the technique offered potential prices for entry and exit based on consolidation. In short, it is a technique that involves no prognostication or anticipation - only reactions coupled with stop-loss rules.
Currently, BTC potentially finds itself inside of a Darvas box popularized by Nicholas Darvas (although his time scales were different). Simply, the technique offered potential prices for entry and exit based on consolidation. In short, it is a technique that involves no prognostication or anticipation - only reactions coupled with stop-loss rules.