Our EMA (the blue line) is a great support and resistance line for an uptrend or downtrend in price action. We can use this to our advantage.
After a bit of studying the price action, I found that during down trending price action, if one of the red candles deviates from our EMA by around $1000, it is almost always likely to jump back to the EMA.
I indicate this with the yellow arrows. I found this method to have even more validity if the red candle does not start off by touching the EMA.
I've found that using smaller time frames for deciding where to jump in is helpful.
How do you know if Bitcoin is in an up or down swing? See my previous idea:
After a bit of studying the price action, I found that during down trending price action, if one of the red candles deviates from our EMA by around $1000, it is almost always likely to jump back to the EMA.
I indicate this with the yellow arrows. I found this method to have even more validity if the red candle does not start off by touching the EMA.
I've found that using smaller time frames for deciding where to jump in is helpful.
How do you know if Bitcoin is in an up or down swing? See my previous idea:
Kommentar:
It's best not to start at the beginning of a downtrend. Try it towards the middle, and ensure that the deviation is large enough that it will see a bounce. Any gains you make, take. Don't wait for the candle to reach all the way to the top of the average line.
Kommentar:
For some reason, the chart doesn't show correctly, so here's the image I was referring to:
