Hello Riders, sorry for the 2 day delay in this newsletter, I had eye surgery again and had to rest a bit.
Back to business.
Before entering the analysis, I will tell you some news about our indicators.
- We have launched 1 new free indicator, called XXX, which focuses on detecting big trend changes on high timeframes. Find it here
-We have developed an indicator based on Volume trends that is still in testing, you can find it here for now but I am planning to fusion this together with the Volume Oscillator in the near future.
Keep in mind that the spirit of these indicators is to serve as a complement to those we already have. Our Rider Algo #1 and #2 are more than enough for our daily trading and sometimes it is better not to look at so many signals so as not to get confused. Analyzing the market, we can see that NASDAQ lost the very important support of the 11K this week, we would have to wait for the next one to see if that is confirmed.
Bitcoin remains firm, holding at the 18-21K levels, which the altcoins have taken advantage of to start jumping.
However, altcoins are not out of the woods yet in the short term as if stocks continue to fall sooner rather than later they will drag cryptos down.
We have been able to see many pictures on twitter that indicate that Bitcoin has most likely already bottomed out, which make a lot of sense considering that
However, there are also other signs of concern such as Bitcoin still below the 200WSMA, which has been its historical support. That's why I want to focus this edition on 3 models that will help us confirm when Bitcoin is out of the woods, so let's go! Model #1: Oscillators Reversal Confluence 1W Basically what we want is 3 of the oscillators breaking downtrend to the downside. Money flow is still the one pending both on the 1W and 1M TF.
Model #2: Trend Divider Band
Most of the time bull runs are confirmed when the 21Wema crossover the 200Dsma (green line above red line)
So this one is still pending. If price starts trading above 24.6K this one will confirm fast.
Model #3: Stochastic RSI 1M TF
Stochastic RSI is right now at very similar levels compared to previous market bottoms, now we need it to go inside green area again for confirmation.
In the meantime, be careful and smart with your moves.
If you buy spot: For stocks and altcoins, make sure to rotate and take profits. In other words, if you bought a coin and then it went up a lot, reduce that position and assign it to one that hasn't grown yet. We have talked about this concept a lot in previous editions.
If you do day trade: make sure to map clear support and resistances levels using our indicators, draw those lines on your chart so they are available on any lowertimeframe.
And if you want to be conservative then just PATIENCE, wait for the confirmations. This is not financial advice! Let's keep riding the trend together. TR