BTC has be very volatile but as you can see from the top of 19000.00 it has been fluctuating (topping) around 15500. On the daily chart our compass has just crossed our black rsi line at the top of our arbitrage band.
This is about to be beautifully ugly!
15 minute chart... topping... 3rd deviation
1 hour chart... topping 3rd deviation
I'll be buying back in at the bottom! See ya there!
68.2% of all possible movement happens within 1 deviation from the mean
95.2% of all possible movement happens within 2 deviations from the mean
99.6% of all possible movement happens within 3 deviation from the mean
which leaves about .4% for the gamblers out there...
As we can see on the daily chart when btcusd touches the 3rd deviation it recoiled nicely. Candles can't exit past that orange line for long :)
So on both the 15 minute chart... which we use to trade on a 3 day basis we have reached 3 deviations out.
Likewise on the hourly chart which we swing trade for a 10 day trading period has also reached it's 3rd deviation up.
Next fun mathematical law. Horizontal Asymptote... sounds scary but it basically means the average of what i do in 5 days cant be bigger than what I do in 10 days because those 5 days are a part of those 10 days
The black line in our Arbitrage Band is a Horizontal Asymptote. It's never permitted to leave the band and since it cant leave all of the averages force the stock to slow down so more room can be made in the band or it has to fall.