Overall Summary:
Overall I am .
is trading in the $3600 to $4200 range during the last week, 81.5% down from the ATHs, with a market cap of $63 billion. The chart indicates a continuation/consolidation/reversal of the current X trend. The price is closest to the 50 MA with a trend towards the 50 MA. The has decreased over the last week, which is supporting the current price action. During the period the ‘dominant’ DMI switched over and it is now the and a weak trend strength of 19.
Detailed Summary:
This chart uses weekly Renko with 4 MAs (20, 50, 100 & 200) & DMI.
Renko are great for trend trading. Renko means ‘brick’ in Japanese because the represents only price movements. Although some price action is missed, Renko makes it very easy to identify key trends and areas. This chart style is often used along with Heikin Ashi charts for greater confluence. As you can see, there is very little ‘noise’ in this style of chart, allowing traders to ignore short term trends. I set the security at $50 per block so that every block represents a $50 price move. During the last week the price has ranged by $500, opening at $4100 and closing at $3600. The price has decreased over the period which is a continuation of the long term price trend.
Moving Average are also used on this chart to help identify major areas of S&R and general price trend action. I prefer to use simple Moving Averages on the daily time frame. The 200 MA is red, the 100 MA is orange, the 50 MA is yellow and the 20 MA is green. The choice of colours helps me to read the chart and see if price action is or . For example, if the red is on top and the green is on the bottom, it is clearly . It is also important to note that the longer the Moving Average period, the stronger the . During the last week the price is closest to the 50 Moving Average and during this period it has trended towards/around the 50 Moving Average. The 50 Moving Average is currently acting as resistance while there is no MA acting as support. The key is $3300 and key Resistance areas is $4200. I forecast in the next week that price will test the next .
is a key indicator that I use to understand past, current and possibly future price action. Unfortunately a majority of the exchange is fake ‘wash’ trading so it is important to rely on data from reliable exchanges like Binance and BitFinex. that supports price recent action helps strengthen my belief in a specific trend. During this period has decreased in convergence with the recent price action. On a longer term time frame, the is in convergence with the long term trends. I forecast in the next week that will decrease and this will support a decrease of price.
DMI ( Index) is a popular trend trading that measures Moving Averages and is able to identify trends while ignoring ‘noise’. It is used on combination with other trend indicators to build confidence about price actions and trends. Look for divergence and convergence between these three lines: Green is the or , represents action, Red is the or , represent action and Yellow is the , is an average of the above two and sums up the MA trend. At the start of the period, the ‘dominant’ DMI was the + DMI, at 41 while the was at 18. During the period the ‘dominant’ DMI switched over and it is now and the is 18. This indicates a convergence with the long term price trend and a weak trend. I forecast in the next week that the that ‘dominant’ DMI will increase and this will support a decrease of price.
References:
Renko summary –
Moving Average summary –
summary –
Fake exchange summary –
DMI summary –
Published at Mon, 14 Jan 2019 14:09:04 +0000
