Analytical Trading : I had explained What is The ADX/DMS tool of Bittrex is ?
You can find it here. ADX/DMX tools of Bittrex 1
Coin : Mona Coin
Platform : Bittrex
Algorithm : ADX/DMS, Resistance and Support region
Setting: Period 14 days
I have been using the ADX/DMS tools since a week and I had learnt quite a handful tricks using this kind of momentum indicator. You can find my related experience and previous anticipated prediction in my previous post.
This post, I want to conclude the use of ADX/DMS tool as there are several limitations I have experienced after using it a week .
**Limitation experienced using the tools : **
1. It is just a momentum indicator. Using ADX alone is not sufficient. The value of ADX just tells the momentum of the uptrend or the down trend.
2. The Direction indicators (DI) do give some knowledge of the prices, however, no knowledge of the volumes, rate of buying or selling and resistance and support point is available.
3. So, I conclude that the some more knowledge of several more indicators and tools are required.
Coming back to our analysis of the coin - MONA COIN, the tool has been quite useful only when coupled with several other tools such as support / resistance and Fibonacci lines. I will be carrying out tutorials of the above two in the upcoming series.
The old graph below shows my analysis in the previous post .
The figures are in chronological order from fig1 to fig 2 . Below figure shows todays analysis ,
Compared to Fig.2, the trend touches resistance 2 several times. As stated previously, I said, either ,
The trend will enter consolidation or an uptrend it it does not cross support 2.
This is what I had stated in my previous post. !
A possible consolidation is expected ( it means the graph will hover in the region between final support and resistance 1) .However, if the resistance 1 is overcome, then a possible uptrend is expected.
So, as a result of breaking resistance 2, the uptrend has started.
Now see the below figure for today's graph. The graph is heading towards resistance 1 region.
As +DI>-DI and ADX value is ~32, the likelihood of consolidation is possible around 0.0005522 BTC
Before a possible uptrend againg. Again, since the ADX value is less (~ 40-50) is considered strong,
A possible downfall to ~0.0004800 -0.0005000 is possible.
Have a great day ahead.
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Disclaimer: These tutorials are the processes involved in my learning and my accumulated experiences which I am sharing with a hope that my cumulative experience might be useful for the readers. I am by no means an expert and my predictions are not based on particular parameters I am studying.
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