12 August 2016 -Technical analysis BTS / BTC by najoh

in #bitshares10 years ago

Daily chart

The long term chart is bearish as the price is trading under the 200 MA line.

Daily chart zoomed in

The mid term chart is bullish as the price is trading over the 50 MA line.

Hourly chart

The short term chart is bullish, we can see higher lows, the price is trading over the 50 and 200 MA line and the 50 MA line crossed over the 200 MA line.

BTS could be trading higher in the short term, but i believe the long term chart is bearish. If you want to trade BTS you should be using tight stop losses to avoid any substantial lose.

HELP on how to understand the charts

Under this line I explain how to understand the charts, I will use this information from now on to help you guys to understand better how this whole thing works.

What is the 50 MA and 200 MA and why does it matter ?

Link : http://www.investopedia.com/terms/m/movingaverage.asp

When the price is trading under the 50 MA is a bearish sign, meaning that the price should be moving lower in the future. The same goes for the 200 MA, but the 200 MA is a longer term trend, trading under the 200 MA is very bearish.

Where are we now ?
We are trading under the 200 MA on the daily chart. Very Bearish.
We are trading over the 50 MA on the daily chart. Bullish.
We are trading over the 50 and 200 MA on the hourly chart. Very bullish.

Bullish reversal, how to see it

You may want to know when the price is going to reverse, first of all the price should move over the 50 MA, then the 200 MA, once it's there, the 50 MA line should cross over the 200 MA line, if this doesn't happen, it's a bearish sign, if this does happen, it's a bullish sign.

If you see the white line (50 MA) crossing over the orange line (200 MA), this will mean that the price of BTS is going to go much higher and that the longer trend reversed from bearish to bullish.

On the daily chart, the trend is bearish, but on the hourly chart the trend is bullish. Meaning you could make some profits in the short term and sell back your BTS.

Higher lows

Higher lows indicate that the trend is bullish and prices are going up more and more, until a lower low happen, we can expect the prices to go up. If you look at the hourly chart we have only higher lows, meaning the odds of the price going higher are very likely. Once we start seeing lower lows, the trend could reverse.

Support and resistance points

The support is where the price in the past encountered a lot of buyers and where the price couldn't go lower. If a support is broken, we look for the next support and so on. Breaking a support one after another is a very bearish sign.

The resistance is where the price in the past encountered a lot of sellers and where the price couldn't go higher. If a resistance is broken the price might go much higher in the near future, it's a very bullish sign.

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Good post, thanks for putting this together.

Steem on,
Mike

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