Disclaimer: This is not meant as financial advice and is for entertainment purposes only.
Yesterday we examined the EMA’s crossing over on shorter time frames, the bullish setup on the 4 hour Ichimoku Cloud , as well as the reasons that kept me out of the market while awaiting further development.
Today we are going to look at a few reasons why this market could have found a bottom as well a few reasons as a few reasons why it might not have.
Let’s start with the good news and end with the cautionary!
There are two indicators that signaled the bottom of the last bear market, prior to the year and a half of consolidation. It was a red 9 on the weekly TD sequential and and a cross on the weekly Stochastic below 12.
We haven’t gotten the 9 yet, but fingers are crossed that it will come on this drawdown. If it doesn’t then I expect we have another painful 2+ months in our near future.
Now let’s take a look at a chart that I posted on Twitter (same screen name) on 6/11.
It is cut off in the picture but the next arrow was straight down to $5,000. The top of that channel is serving as strong resistance and it isn’t alone. There is established horizontal resistance from $6,750 - $6,792 and we can see that it is significant when looking at the visible range volume profile on the daily chart.
Building a short with a stop loss at $6,830 with a $5,000 target provides a nice risk:reward. However there are too many oversold indications on the higher time frames - such as the C-Clamps on the daily Ichimoku Cloud and the distance away from the 200 day MA.
Now that the bullish indicators are starting to build you might be considering building a long. If so I would suggest using ½ of your position sizing due to betting against the trend and also entering in thirds upon the following confirmations: Red 9 on the weekly | Crossover on the 12 & 26 day EMA’s | Golden cross on the 50 & 200 period MA’s on the daily chart .
Be like a chess player, always thinking moves in advance and rarely getting caught off guard!
Thank you for reading! Have a question? Leave a comment! Smash the follow so that you don't miss out on future updates and remember that clicking the like is good karma!
After content like that you know you want more!
Yesterday's Post - Day 130
Trading Challenge - Day 117
Weekly Gold Update - Week 15
School - Options 101: Limited Risk with Unlimited Reward | Intermediate Trading Strategy | White Paper Cliff Notes: AION | Intro to Indicators: Stochastic | Bitcoin Market Cycle
Need a break? Read some Poetry! - I Believe | Aliens | The Universe is a Hologram | Sunset
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See my response to Sawcruhteez here. You guys need to inject some humanity and basic reason.
I see nowhere to leave a mention about Steemit on my Trading View profile. I have included a screenshot which shows me logged into TV as Sawcruhteez. I have clicked on profile, and profile settings and there is not anywhere I can make a mention of Steemit in either of those sections.
Now it appears as though I have been banned. If you would have taken the time to look at the posts listed under 'school', my poetry or the BTC Trading Challenge then you would have noticed it is only posted on Steemit and is nowhere else on the internet. With an ounce of discretion it should be obvious that I am the author.
This is extremely frustrating and is making me seriously re consider the decentralization of Steemit. How can it be decentralized if person X has the power to ban person Y?
Hey @sawcruhteez. Sorry to see you haven't been posting for awhile.
Unfortunately, these guys were high on policing and low on thinking or even compassion in when they went through their process. They do some good work, but blew it on this one, big time.
@steemcleaners, @bullionstackers and anyone else involved in this police action, you really screwed up this time. Read his last article and see what he's already going through in life. You guys should be ashamed of yourselves. Then you expect people to jump through your hoops, assuming the role of typical jackboot thugs? The IRS would be proud. So would bernie.
@jesta, @cheetah is a nice kitty and has been great, but should jump off the catnip bandwagon on this one. Too low class for you.
We've been working with him to try to build his product. Nice job chasing someone off who offers real value to the Steem blockchain.
Sorry, got the wrong person - @anyx, not Jesta. Can't edit now. :(