Hello everyone! While messing around with some indicators I came up with this moving average line that is surprisingly accurate and easy to use. I feel it can be used alone or better yet something to add to your arsenal and give you confidence that a trend is about to happen. When the price moves and closes above the line, the chance of it staying above the line is significantly more than 50%, this works going down also. Basically, when the price is above it's bullish and when below it's bearish. It can also works great as a place to put a stop loss.
Let's begin with the current 4h Bitcoin chart. Currently the price has closed below the line. Based on the MACD and Stochastic indicators we shouldn't go down much further however I don't think the price will close above the line and even if it does there are more signs the price will continue to go down and you'll see why below. Another bearish sign is the price failed to get above the 38.2% fib level.
The price has is currently below the line and may likely close below. The MACD and Stochastic indicators are in overbought territory so I predict well drop to around $5.9k - $6.1k in the coming days.
Let's begin with the current 4h Bitcoin chart. Currently the price has closed below the line. Based on the MACD and Stochastic indicators we shouldn't go down much further however I don't think the price will close above the line and even if it does there are more signs the price will continue to go down and you'll see why below. Another bearish sign is the price failed to get above the 38.2% fib level.
The price has is currently below the line and may likely close below. The MACD and Stochastic indicators are in overbought territory so I predict well drop to around $5.9k - $6.1k in the coming days.
Comment:
Bitcoin still struggling to get over the line. I have added a 21EMA to help find a good opening and closing position before we go over or below the main line which I colored orange. I also noticed when the lines cross it's another confirmation of a reversal.
Order cancelled:
A fun experiment and will work on in the future.