Two Interesting Observations Worthy of Future Investigation
This my first post here and want to thank you for taking your time to take a look at my thoughts and ideas. Any recommendations and constructive criticism are welcome.
After looking at the chart for a few months now I have noticed a few trends and patterns that are worthy of future consideration and evaluation:
My first observation is how the angles of the local down trends during this pull back are gradually decreasing as we move on in time. This is shown by the yellow lines with the following angles: 92°, 110°, 127°, and 141°. So what is significant about these angles? Well if you were to take the Fibonacci level values and apply them to the allowable angle range of 90° to 180° you get the following angles: 90°, 111.24°, 124.38°, 145.62°, 160.74°, and 180° which are all within a few degrees of the observed trends.
It is also noted that he decreasing trend angle are also followed by the same trend angle upward.
This kind of pattern of trends also makes an overall arc and if this pattern is mirrored it will create a possible cup and handle situation and if so it is possible that these same trend angles can be used to predict how it will be formed on the way up.
This may already be a pattern observed by other TA professionals over the years but I have no idea as I am relatively new to this. I do however understand the significance of the Fibonacci sequence as observed in markets thus making this something worth investigating.
My next steps will be to look for these angles in past history and in other charts to see if this has greater validity.
The second observation is annotated by the vertical pink lines and ovals on this chart. These lines correspond to the moments where the
BTCUSDSHORTS
and
BTCUSDLONGS
converge. Each time this has happened during the recent pull back the price went up shorty after. It is almost like most people placing short and long orders FOMO into placing new orders at these critical points while the rest of the market is seeing this as a good time to buy the actual Bitcoin.
This is not a perfect indicator or anything but may be something worth following for the next few months to see if it continues.
I have other indicators and patterns on this chart I'd like to also mention:
The gray triangle seems to be holding strong with three tops and bottoms forming it.
Following the trend angle back up we will reach the green region as shown. Afterwards, this trend will then stop at the top of the triangle and will then take the next trend angle of 160.74° down towards the vertex of this triangle where I believe we may spike up or go horizontal for a short term before moving back to a bullish trend. At this point I will be looking to see if the short and long orders start to converge again.
It is also notable that the komo cloud is narrowing around the vertex of the triangle making it easier for the price to move above it. With all of these things I believe we will enter into a bull market again in the next coming months.
So for now expect low volumes and smaller price swings. This will be a good time to accumulate more
BTCUSD
and trade those alt coins. Goodluck and thanks for reading.
After looking at the chart for a few months now I have noticed a few trends and patterns that are worthy of future consideration and evaluation:
My first observation is how the angles of the local down trends during this pull back are gradually decreasing as we move on in time. This is shown by the yellow lines with the following angles: 92°, 110°, 127°, and 141°. So what is significant about these angles? Well if you were to take the Fibonacci level values and apply them to the allowable angle range of 90° to 180° you get the following angles: 90°, 111.24°, 124.38°, 145.62°, 160.74°, and 180° which are all within a few degrees of the observed trends.
It is also noted that he decreasing trend angle are also followed by the same trend angle upward.
This kind of pattern of trends also makes an overall arc and if this pattern is mirrored it will create a possible cup and handle situation and if so it is possible that these same trend angles can be used to predict how it will be formed on the way up.
This may already be a pattern observed by other TA professionals over the years but I have no idea as I am relatively new to this. I do however understand the significance of the Fibonacci sequence as observed in markets thus making this something worth investigating.
My next steps will be to look for these angles in past history and in other charts to see if this has greater validity.
The second observation is annotated by the vertical pink lines and ovals on this chart. These lines correspond to the moments where the
BTCUSDSHORTS
and
BTCUSDLONGS
converge. Each time this has happened during the recent pull back the price went up shorty after. It is almost like most people placing short and long orders FOMO into placing new orders at these critical points while the rest of the market is seeing this as a good time to buy the actual Bitcoin. This is not a perfect indicator or anything but may be something worth following for the next few months to see if it continues.
I have other indicators and patterns on this chart I'd like to also mention:
The gray triangle seems to be holding strong with three tops and bottoms forming it.
Following the trend angle back up we will reach the green region as shown. Afterwards, this trend will then stop at the top of the triangle and will then take the next trend angle of 160.74° down towards the vertex of this triangle where I believe we may spike up or go horizontal for a short term before moving back to a bullish trend. At this point I will be looking to see if the short and long orders start to converge again.
It is also notable that the komo cloud is narrowing around the vertex of the triangle making it easier for the price to move above it. With all of these things I believe we will enter into a bull market again in the next coming months.
So for now expect low volumes and smaller price swings. This will be a good time to accumulate more
BTCUSD
and trade those alt coins. Goodluck and thanks for reading.