A little off topic. Using BotFinance's Tradingview platform for my TA. I'm used to being able to put up a Avg. Volume indicator that helps me determine if a move was really significant or not. I hoped you would have some info.
Also I've traded stocks and FX for a while and TA seems to work well enough for the most part. But do you ever feel that using TA for the cryptocurrencies doesn't really correlate as well? Would like another viewpoint from a fellow trader
Absolutely technical analysis works, the RSI is a solid indicator once it corrects from either direction and RSI trends can be quite a useful tool. The price volatility can skew the chart reads quite often and this is where the RSI is a great tool. I prefer to use moving averages and momentum. I have another chart setup for trying to glean information on longer term swing setups.
I'm using RSI, MACD, EMA's as well as my more bread and butter price action with corresponding volume moves as my main trading setup.
I'm not saying it doesn't work but it doesn't seem to respect the TA's as well as the other securities did. At least from my novice experience so far. For example, large volume movements, price would normally respect these support and resistances but with the cryptos they seem to move right past without even the hint of volume behind them. Have you noticed a difference?
And perhaps maybe it's just because of the last 48 wacky hours that things are not necessarily correlating as well with TA's but rather news and unpredictable forces?
In some cases yes, extreme volatility ignores gravity -- when they ignore gravity wait for topping and bottoming -- use RSI - but for sure, sometimes they defy chart logic - this is because we have limited supply and a lot of investors and traders who are novice and may or may not understand risk - BCH is perfect example, went parabolic, from 1200 to 2700 late last night in just a few hours - no person in their right mind would chase that. Those that did are bag holders.
Agreed. I was watching that and just thinking, when is this thing gonna come crashing down? I kept wanting to go short but was amazed at the momentum and even cynicism of those buying!!!
Absolutely agree.
Quick example, ETHBTC short entry -- gap resistance, could produce a top. Price needs to remain above 200dma, red to stay bullish, also mus break above gap resistance. Note slight uptrend on RSI, note is has tested the trend quite a few times, expect it to test again. If no position wait for price to fall below 200dma, this will pull the stochastic RI into downtrend - my view of course.
I see a possible ascending triangle with the rsi also confirming the upward trend. All I would need to commit is a higher than average close above that trend line you have drawn
and alternatively you would play the opposite way if ETH pushes up into the gap and the 50dma (green) goes above 200dma (red) -- this is 5 min time frame, looking for a scalp.