RE: Bitcoin trendline analysis 📈 latest update
I think his analysis has merit, although his drawings are based on his eyeballing the chart. Logarithmic charts do have their place, but not too many analyst use them. I'm not sure why that is. I think it distorts the price movement. I don't see logarithmic scales used in everyday life. Although I prefer mathematical indicator I have draw lines on charts as well. Although indicators may seem to clutter the chart. I put two on this chart (logarithmic) with "curved lines" based on Fibonacci sequence and SAR.
This next statement made me scratch my head. This pattern is referred to as a Rising Wedge. My experience tells me that something is going to happen before the investment gets to the intersection of the lines.It has a bearish bias.
**"The black dashed lines indicate the distance between the red and green straight lines. Immediately obvious is that the distance between those lines is narrowing. Now no matter what sort of growth rate you believe this chart to represent (sub log 10, log 10 or beyond log 10); these two lines can never touch. It is a physical impossibility. They could touch if you project them far enough into the future, but not along the body of the existing chart." **
Thanks for the comments.
I firmly believe in eyeballing charts - pretty tools look nice, but have no more value than a few rough lines. I could draw lines in with crayon and be just as accurate - because a guess is still a guess - you can put lipstick on a pig, but it's till a pig. I don't delude myself with unnecessary formulae that fail to predict anything of significance. I don't believe that a good trader needs lines or tools at all! I normally only use lines and indicators to show what I think, I seldom use them for my own trading.
I disagree on the rising wedge. I think that the time period is too great, especially for crypto which tends to move very fast. And also it's a log chart. A linear chart looks very different and fans out as opposed to forming a wedge.
I use the log charts because they show equal percentage changes over time as opposed to equal USD changes - which are nonsensical when experiencing logarithmic (or super-logarithmic) growth.