Comments on BTC/ USD After drop to ~$2150
Penant pattern.....get ready for breakout after this low volatility zone (hint: can tell volatility by small candle size and contracting range)
Few dimensions to look at, at the same time for trend change detection:
Price usually drops on high volume...then volatility drops and price rises on lower volume relative to drop...
Hammer (small top with long tail) is one part of the signal that trend may change direction...the rest is in volume
High volume green hammer followed by low volume selling..is sign of sellers being weak...
Multiple tests of old support levels from hours/days/weeks ago (if it can't break support, we are going up).
---- also volatility says a lot about which part of the trend we are in but we only have few tools to really assess it ...for now just have to look at candle heights and contracting range.
- In the future, when crypto has derivatives...we can utilize historic volatility, implied volatility and imp. vol. % rank of the derivatives to find bottoms in underlying... gives us 3 dimensional view of volatility
I suggested buying at $2200 in trading room hours ago.... Last call to to get on board right now... train is about to leave soon $2349 is going ... BYE BYE
Updated - Time has passed and the first graphics' lower line ignored a long green candle tail...(mistake).