On the #BTC the Bearish flag does not seem to have broken markedly on the downside, on the contrary it seems to presentars more a possibility of bullish divergence on the RSI on 4h.
Let’s start immediately from image 1 with the price chart and the RSI on timeframe 4h:
Image 1: tradingview – 2018-05-27 – timeframe 4h – btc / usd – bullish divergrnce
Although the price continues to fall, albeit in an unmarked manner, a bullish divergence seems to be emerging on the 4h chart.
Before taking a position, for those who are out of the market, it might be better to wait for confirmation in prices, given the uncertain situation. For those who are already inside, like us of Cryptograph Team, it is better to set the appropriate stoploss.
Bitcoin on the medium / long-term resistance wire, with a Bearish flag that could break resistance.
As can be seen from the price chart, in image 1, the price of Bitcoin is walking on the medium / long term resistance:
Image 1: tradingview – btc / usd – timeframe 1 day – 2018-05-26 – bitcoin on the resistance wire
The oversold RSI, together with the resistance, would support the hypothesis of the beginning of an uptrend.
A totally contrasting hypothesis is given by the Bearish flag which was formed in the short term and which is can be seen in image 2 :
Image 2: tradingview – btc / usd – timeframe 4h – Bearish flag
The Bearish flag would suggest the hypothesis of a down trend that could therefore break short-term resistance. This hypothesis would also be corroborated by the low volumes of this period is from the general market trend which at this time is rather bearish.
An example of treading for those in the market is to stay there by fixing the appropriate stop loss immediately under the medium / long-term trend. For those who are outside the market it would be better to stay out waiting for an improvement in the situation that at the moment seems to be very undecided.
We at the Cryptograph Team were IN for a few days and we will continue to be waiting for developments.
#zec possible bullish pennant with target + 24%
Let’s start immediately with image 1 of the #ZEC price chart
Image 1: tradingview – timeframe 1 day – 2018-05-23 – zec / btc bullish pennant
As can be seen a bullish pennant seems to have formed. The pattern is also supported by the volumes created.
A possible example of trading is therefore, with a Risk to reward ratio of about 3: 1, entering now inserting a stop loss at about 0.037btc and expecting a take profit on 0.050btc with a gain of about 24%. Once broken up the pattern could be useful, as a sector, a more stringent stop loss in order not to lose any gain.
Warning: this is just an example of technical analysis and not an operational signal.
Report on the main #crypts we are following right now.
In the world of cryptocurrencies it is well known that the bitcoin often pulls down the price of other Coin, and at this moment the Bitcoin trend is particularly uncertain.
Image 1 : tradingview – 2018-21-05 – timeframe 1 turn – trend btc / usd
As you can see in image 1 the purple wedge acts as a resistance to prices bringing them down. Even the smallest wedge, in red, which broke upward in these groups, does not seem to be able to get the bullish trend back on track.
Even among the altcoin the trend is almost all red and the exchange volumes in the last 24h are low as can be seen in image 2 regarding binance:
Image 2: binance – btc market ordered for volumes in 24h
It can be noted that the coins above the 5k volume in the 24h are only four.
The ETH, which a few days ago seemed to have taken off, has also joined an uncertain phase of lateralization as can be seen in image 3 :
Image 3 : tradingview – 1 day timeframe – eth / eur
In this phase of the market the best option can be to stay IN for those already inside, hoping for a lift. However it would be prudent to insert the appropriate stoploss.
We at Cryptograph have preferred to disinvest part of the capital, that is all that invested in BTC, taking advantage of the last rise. Instead, we remained flat on #LOOM, hoping that the volatility of this currency will give a good gain in the future.
We come back with a theoretical article about the Trident Trading System #TTS, to enrich our knowledge of technical analysis.
The TTS is a tool used to identify a theoretical objective of where the price will go. It is therefore particularly useful, after having identified the direction of the trend, to understand where a take profit could potentially be expected.
It is based on tracing four points, the theoretical P4 objective to be identified and the knowledge of further three points P1, P2, P3.
An example figure is shown below:
Image 1 : representation of the four points of the TTS
Basically the three known points are that of the previous wave (see Elliott’s article on the waves) and the goal is where the next wave will be positioned.
The TTS formula suggests, in the event of an uptrend, that P4 is calculated as follows:
P4 = P2 + P3-P1
With a view to reaching P4 as a relative maximum, it is suggested to open long positions at:
ENTRY PRICE = P3 + (P2-P1) / 4
So you have to wait before figuring out if from P3 it actually takes place to a bullish movement.
To be kept as “control level” the following:
CRITICAL PRICE = (P3 + P4) / 2
Where we check that the trend is really going in the desired direction.
Specular considerations should be made for bearish trends.
- Achille Fornasini, “Mercati finanziari: scelta e gestione di operazioni speculative – I metodi e i sistemi della moderna Analisi Tecnica a supporto delle decisioni operative”, 1th edizione del 1996, ETAS