My advice to begin with: If you trade using indicators, you usually lose money. The reason is that indicators have an offset. That's why you should be really cautious using them. If you begin having a better understanding of how the market behaves then these little fellows might help you predict the movements on the one hand and help you set up some targets on the other.
This chart takes me back to a week ago when I posted my idea "Prepare your shorts for the sea Bitcoin has a beach holiday trip". A week ago this idea was short. And I was right. The movement fits perfectly. The reason: The market often creates Head and shoulder patterns. Up and Down movement just result in that. We want to use this fact and predict the begin of an uptrend after a few days. After the bull run there will be a bearish run again. But that's it. We don't want to go further than that right now. No specific targets as you will lose money using clear targets! We can assume that it might be around fibonacci level, though.
Apart from that, let's see if that would work with other indicators:
RSI would drop when Bitcoin keeps dropping a bit and get into oversold area.
MA's would go on as shown as they have a big offset.
-> everything fits perfectly.
Will this whole Head and Shoulder end in a bigger bearish position? Maybe a bit. But NEVER go too far regarding your analysis. At the end of the day, you will fail. That's why we use what we've learned and apply just for now. Buy low, sell high -> make profits.
This chart takes me back to a week ago when I posted my idea "Prepare your shorts for the sea Bitcoin has a beach holiday trip". A week ago this idea was short. And I was right. The movement fits perfectly. The reason: The market often creates Head and shoulder patterns. Up and Down movement just result in that. We want to use this fact and predict the begin of an uptrend after a few days. After the bull run there will be a bearish run again. But that's it. We don't want to go further than that right now. No specific targets as you will lose money using clear targets! We can assume that it might be around fibonacci level, though.
Apart from that, let's see if that would work with other indicators:
RSI would drop when Bitcoin keeps dropping a bit and get into oversold area.
MA's would go on as shown as they have a big offset.
-> everything fits perfectly.
Will this whole Head and Shoulder end in a bigger bearish position? Maybe a bit. But NEVER go too far regarding your analysis. At the end of the day, you will fail. That's why we use what we've learned and apply just for now. Buy low, sell high -> make profits.
