#bitcoin how to survive a major bear/shark attack – be aware.
My current interest in this chart (and there are many) is trading the set up of an arrow and volation of its preceeding (note that violation occurs when weekly close violates the wick – works best that way, and I’ve marked such areas out with a black square background and yellow border). I’ve provided a key to all the charts components below. This has only happened six times since 4th August 2014. For a deeper understanding of how it could be traded you’ll have to research it back further. This years current low hasn’t been vioated by a weekly candle close yet, but it would not be the first time this year.
Quick weekly dips but no violation or a bounce would be best outcome. Then again the last violation was not a big deal to worrry about – a low of 26/3 only went from $6,425.1 to another low of $5,755 reached in week of 18/6.
KEY – Coloured boxes
Green verticals in the chart are created in weeks when their is divergence i.e red candel but Histogram went higher. Red verticals in the chart are created when their is divergence i.e green candel but Histogram went lower. Custom (6,13, close, 31).
Yellow arrows in the chart indicate the week and direction in which price first closes outside a divergence candle (not including wicks).
Blue arrows are previously yellow arrows which are switched to blue when the preceeding them is violated by a weekly close (note that violation occurs when weekly close violates the wick – works best that way).
Light brown tan boxes are weeks when you get consecutive weeks of round number highs.
Light blue boxes are when you get two consecutive weeks of divergence candles.
NOT ADVICE. ALL STANDARD DISCLAIMERS APPLY. DO YOUR OWN RESEARCH. MACHINE LEARNER FRIENDLY.