I am still enjoying my holiday trip overseas and I borrowed my friend’s computer to update some charts to tell you that I am still trading with you.
Some people avoid using to analyze Bitcoin but I still recommend it. Just stick with original parameters (9,26,52)
is one of the important features in analysis. It tells us the major support or resistance without drawing horizontal lines.
Let’s see the structure 1:
A long with its shadow almost hit Kijun-sen (resistance), but the body closed slightly above the senkou-span of green cloud. How many of people jump into the boat to go LONG? I don’t know, the safe trade is to wait until the breaks above Kijun-sen first. This is an trader’s strategy.
Let’s see the structure 2:
The hit the previous high on 28-29/Jan, but the bears drew the price down and closed as a pattern. The price was even lower the of senkou-span of red cloud. ( Well, some people may argue that the was not valid. Because of the candle formed the next day. This is so called a . )
You will see that the bears are much stronger than bulls, the bears created a rejection zone between 11577.85 and 13228.49
What is happening now?
As we can see Tenken-sen & Kijun-sen crossover happened just 7 days ago. It was a buy signal, wasn’t it?
If you have a long order now, your stop loss is to put under the Kijun-sen, which means SL < 8954 or under the low point of the red cloud, which means SL < 8496
If you have a short order now, your stop loss is to put within the rejection zone (a safe zone for bears)
If it could stand above the Kijun-sen, then we may go long to 11577 again.