SHARK1318

BTC Analysis of Seasonal Trends in Financial Markets

Long
BITSTAMP:BTCUSD   Bitcoin
The first and simple indicator from Shark Trading is now publicly available, along with a lecture on the advantages of using the seasonal indicator. You can also find it on the Tradingview portal and support it with a like:

Dear Traders!

The seasonal indicator is a powerful analytical tool that helps you better understand the market and make more informed decisions. It not only provides visual representation of various seasonal changes but also helps identify patterns and trends that may go unnoticed in regular analysis.

An important feature of this indicator is the ability to customize the color scheme and transparency for each season, as well as choosing between the southern or northern hemisphere. This allows you to tailor the indicator to your preferences and analytical needs.

With the seasonal indicator, you'll be able to:

1. Gain a better understanding of the current market state: Displaying seasonal changes helps you better orient yourself in the current market position and identify potential trading opportunities.

2. Identify trends and cyclicality: Analyzing seasonal changes allows you to identify recurring patterns and cycles in the market, helping to forecast its future movement.

3. Optimize trading: Knowing seasonal trends enables you to optimize your trading strategy and make more reasoned decisions about entering and exiting trades.

4. Improve analytical skills: Working with the seasonal indicator helps you develop your analytical skills and improve your understanding of the market.

We invite you to read a more detailed article about this indicator and try using it in practice. This tool can become an invaluable assistant in your trading and help you reach new heights in your trading career. Don't miss the opportunity to improve your results - study and apply the seasonal indicator today!

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Hello, dear traders! In this trading idea, we will present an overview of the seasonal indicator. The seasonal indicator settings allow you to change the color and transparency of each season, as well as have the function of selecting the hemisphere - southern or northern. In addition, this indicator includes an additional trend indicator that displays the direction of price movement.

In accordance with the color coding:
- Winter is denoted by blue color.
- Summer is represented by green color.
- Autumn is denoted by orange color.
- Spring is denoted by yellow color.

All elements on the chart of a certain color will be attributed to the corresponding season. For example, trend lines or levels marked in blue will be associated with the winter season.

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  • Winter

Explanation of price movement in winter:
1. Number 1 and the blue line denote the maximum price of Bitcoin. Note that they always form at highs, which is consistent.
2. Number 2 and the blue line denote the minimum price specifically in the winter period. This is indeed the price minimum and the low point in the cycle.
3. Number 3 and the blue line denote a local maximum after which the price begins to rise towards line number 1, which acts as a global resistance.
4. Number 4 denotes the last winter cycle before breaking the global maximum. It should be noted that in 2017, the resistance was not broken immediately - first in the spring, and then at the beginning of 2018, the maximum was set and the asset's growth occurred in winter.

Additionally, it is worth noting that numbers 1 form the maximum, numbers 2 form the minimum, and since the trend is descending, its line is marked in blue.

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  • Summer

Now let's consider the price behavior chart for the summer. To make the situation clearer, I've left a descending trend in blue on the graph. I reiterate, elements shown in green on the graph specifically pertain to the summer period.

1. Number 1 on the graph denotes the first summer period! The price during this period remains within a narrow range 90% of the time; however, it's worth noting that impulsive movements can occur at the beginning, middle, or end. Thus, 90% of the time, the price is in a low volatility zone, while the remaining percentage is in a high volatility zone.

2. Number 2 on the graph represents the second summer period, where a pattern is observed: the price tends to rise at the beginning of the summer period and fall towards the end. Therefore, I've marked this time with an arc, and there's a pattern to it. It's worth noting that during the period of the descending trend from 2014 to 2016, the situation after the downward trend differs from the situation in 2018 and 2023, when changes in the arrangement of this situation occur after the breakout of the descending trend based on wave analysis and the price of the asset itself.

3. Number 3 represents the third summer period! During this period, the price movement direction is upward and then downward, forming a correction in the upward trend. It should be noted that in this movement, all lows gradually rise, while highs renew all previous local highs of the asset price. This period exhibits increased volatility and impulsive movements, with the asset price mostly staying within a range of minimal volatility, with volatility not exceeding 1-2% on some stretches.

4. Under number 4, the fourth summer period is indicated, which has an overall upward direction. In this period, the movement is aggressively upward. Starting from the first month until the middle of summer, the price moves downward, forming a correction in the upward trend. Then, during the next month, the price moves aggressively upward, renewing price highs. Volatility in this period is anomalously high, resembling a hot July summer.

Additionally, based on the price movement in the summer period, we can assume that fractals are evident here, which we can use to our advantage for profit.

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Shark Trading - We invite you to read a more detailed article about this indicator and try using it in practice. This tool can become an invaluable assistant in your trading and help you reach new heights in your trading career. Don't miss the opportunity to improve your results - study and apply the seasonal indicator today!

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