Short Term Update: MtGox 4h chart

With this update i’d like to introduce a powerful concept, the “Ross Hook”. invented by Joe Ross, a trader and investor of over 50 years. 
Ok  but what is the ross hook? Well, the Ross Hook is a technical formation that occurs in trending markets where there is a failure of the market to make a new high in an uptrend or a new low in a downtrend. The Ross Hook must occur after a 1-2-3 trend reversal formation has taken place. As you can see on this 4h chart of btc/usd at MtGox in the last 5 days a 1-2-3 pattern formed with a first breakout labeled “RH” or Ross Hook.
Here the btc/usd failed to make a new low at the point “3” on the chart, then it has done a first strong breakout of point “2”, the first istance that failed to make a new high created the Ross Hook (labeled “RH” on the chart). If the market will go above the Ross Hook a trader might try to open a trade, in this case above ~7.3$; a breakout of 7.3$ would imply a temporary reverse in the short term.

For who is interested in this approach i recommend the book “Trading the Ross Hook”

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3 thoughts on “Short Term Update: MtGox 4h chart

  1. geek88

    Hi Enky,
    How are you doing?
    I really think that a bigger move is underway for btc. Nevertheless, I truly believe that we will have to wait at least one month.

  2. razor

    The US dollar is a safe haven currency, the demand for dollar liquidity is going up because of the problems of the European banks who hold large amounts of the sovereign debt of Greece, Spain, Portugal, and Italy. As this process continues the European central bank and the US Federal Reserve are standing on the sidelines watching the show. They are probably not providing the extra liquidity the market is demanding. The European and the US economies will contract as a consequence of a liquidity crunch that will be first cousin to the one seen in 2008. with this scenario it’s highly unlikely that people will invest or move money in a HIGH RISK investment like bitcoins are. I doubt it.

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