Short Term Update: MtGox 4h chart

I was again waiting a move to 5$ but the bitcoin reacted to 5.8$ after a situation of oversold rsi oscillator and negative net volume indicating exhaustion of the previous downswing.

In the same bar it touched 5.8$ and then a shakedown took place carrying the bitcoin to 5.3$ with considerable overall volume (~160000 btc), i’ll consider this as a reference bottom for the short term. Resistance for today and probably the upcoming weekend around 6.4$

 

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

  1. trader2001

    This is to let you know that the long I had from 5.35$ was sold out yesterday at 5.95$, the buy signal is getting old and we’re running into overhead resistance, according to my model, at 6.2$. A close above that price will trigger a fresh buy signal. Meanwhile, I will remain flat. I’d like to add that in a trending market the indicators get saturated. They quit working. We have been having a strong up trend since 2$. Progression of trading ranges, are a better guide, if you are sure of the market direction.

    But, unfortunately, the market is in a trading range right now, in a decelerated up trend. And that could be consolidation for trend continuation or topping action for reversal. If you could share the “market insight”, through some explanation of the indicators you use and your interpretations, i’ll appreciate.

    1. Enky

      Hi, i know that in a trending market the oscillators get saturated indeed i use them also for a confirmation of an UP/DOWN trend more then a trigger for entering/exiting the market. Progression of trading ranges are somewhat related to volatility and of course direction, it is well know that in the market you do money trading beetween two areas of congestion. I explained , under the technical page of this blog, the main concepts and indicators i use to compute daily range and to decide when to enter or not in the market.
      Cya trader2001

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