Bitcoin Technical Analysis 15/7: “The Open”. Welcome to the first episode of The Open. A weekly breakdown of Technical Analysis on Bitcoin and the cryptocurrency market.
Jon uses multiple techniques to analyse the latest market structures including:
- Elliot Waves
- Fibonacci Retracement
- Moving Averages
More on These Tools (via Investopedia):
A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random short-term price fluctuations. It is a trend-following, or lagging, indicator because it is based on past prices.
The two basic and commonly used moving averages are the simple moving average (SMA), which is the simple average of a security over a defined number of time periods, and the exponential moving average (EMA), which gives greater weight to more recent prices.
A Fibonacci retracement is a term used in technical analysis that refers to areas of support or resistance. Fibonacci retracement levels use horizontal lines to indicate where possible support and resistance levels are. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8% and 78.6%. While not officially a Fibonacci ratio, 50% is also used.
Elliott proposed that trends in financial prices resulted from investors’ predominant psychology. He found that swings in mass psychology always showed up in the same recurring fractal patterns, or “waves,” in financial markets.
About Jon CC
Jon is a technical analyst who has been trading crypto for the last few years. He’s primarily a day trader and has a range of trading techniques that he’s picked up over the years.
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