We dream of moon, juxtaposed with gloom.
I will take you step by step through my analysis of using Heffae Clouds and QuantRsi
QuantRsi , or “QRsi” has an option to display both as a line and as candles. The charts with candles in the lower pane is QuantRsi displayed with the full body of that QRsi value; the open, high, low, and close. The QRsi line is the close value only.
QuantRsi is a indicator developed to improve on classical and provide additional features for trading.
– See “related Ideas” for links to these indicators, examples are in the description.
The Title chart is 8H timeframe with 6Hour Heffae Cloud.
The Case for Resistance and Continuation:
Horizontal resistance on QRsi zone on 8H, illustrated by the thin red around 2.0 QRsi, was established as common turning point that price has rejected from since October. Price recently rejected off of this horizontal line agian, while painting a divergence.
Divergence on 20th Dec and 24th Dec – Price makes a higher high, QRsi paints a lower high. This bear was spot on, with price falling more than 10% after QRsi trends confirmed the divergence.
QRsi Trend flip on the 8H. Trend established on two incidents, wick through trend, and now trend acts as resistance on price:
– I have a theory about this particular QRsi trend violation…
-If we do make a move, the breakdown of the 8H QRsi trend, whilst staying within the 4Hr support levels, means that this recent 3.5% drop is purely a liquidity dump… market makers are filling their bags at these levels for the incoming move. This is just a theory, but it would explain the break from support on this timeframe, and I have seen this happen several times on the shorter timeframes in the both directios very recently.
The Case for Support and Continuation:
The 4Hour QRsi paint multiple support tangents at this level:
2: Trend from the lower highs is anchored twice before acting as the final resistance at $3450 before yearly lows. The next incident has price grind along the underside, and then two candles open above this trend and price rally’s to $3580 on the 18th-19th.
Price interacts with this trend once more on the 25th-26th – finding support – but only slightly up and sideways
1: Trend from the lower lows is anchored twice before acting as support for the yearly low. Price finds support once more at $3800 between the 22nd – 23rd. The rally after this trend support is weaker, and paints a bear . The price returns to this trend once more, but one candle opens underneath this , paints a , and then falls to line #3.
3: Trend drawn from compound lows forms another at $3680 matching the of line 2.
4: New resistance trend forms a descending pattern with trend #3.
QRsi trend supports and trend incidents on the 2H agree with what we see on the 4H chart:
Very inverted HnS Pattern:
Litecoin, often a market leader, paints similar zones and QRsi trends:
Litecoin also paints the HnS pattern much more clearly.
Neutral signals – things to watch:
Price is on 6Hour Heffae Cloud intercloud support lines. The last time Price interacted with 6H cloud, it broke through when the cloud was acting as resistance. This path is strong but not impenetrable.
If a candle opens on the resistance side of these intercloud lines, I expect downward continuation.
Price is also near 4Hr Cloud bottom. I expect this to act as strong support, but it does not correlate with 4Hr QRsi support channels unless the candle close forms above this level
BitFinex 8Hr and 1D + Coinbase 1D. Painting a on Coinbase Daily QRsi pattern puts the current Daily candle right on support, if a Daily candle opens to the downside of this trend, this is a .
Bitfinex Daily QRsi has more room to travel sideways or down before the candle violates the trend. I will be keeping an eye on both.
I am currently LONG with a spot position 30% of stack. Cash is on exchange waiting for conformation.
My strategy here is to continue watching the lower timeframes, 15min + 30Min while updating my trend drawings for the QuantRsi.
I am closing my hedge on 15+30min dips, and scaling the short hedge back in when price encounters resistance and continuation fails.
This market can go sideways for a long time without significant moves to confirm the next direction with .
Keeping the 4Hr + 15Min on one window, 8Hr + 30Min on another, and then two 3Min panes split on one window, each 3min with a different exchange works really well.
Altcoins get multi=pane windows. All in all 7 tabs including a legacy chart.
I am also watching Litecoin, ETH, and XRP, as many times they will be market leaders into a big move for .
For I am using the default Quant preset “0” – For LTC,ETH,XRP I use Quant Preset “1” and Heffae Clouds Preset “1” + Offset “1”.
Published at Fri, 28 Dec 2018 13:04:26 +0000
