Short Term update: H4 chart @bitstamp

chartThis is a four hours chart of this month, it is visibile a descending triangle pattern forming up. Well i’ve read here and there about this pattern with lots of people worried about it, but usually this is a dangerous pattern when there is a clear downtrend and it’s not the case here, we are in an uptrend since last 18 December.
There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns.

Regardless of where they form, descending triangles can be considered bearish patterns that indicate distribution but, at the moment, i don’t see a strong negative lecture of my daily “net volume” indicator, instead it is improving.
Second thing to consider is that this month we have had many positive news, also today the French Senate hearing on bitcoin has been positive, in my opinion.

This triangle is going to complete itself before next 20 January, before this date it will break somewhere below my strong support at $785 (where there is also the daily VWAP) or above the descending trendline that defines the triangle, for the next days around $860.
Both levels are near vwap deviation lines of the short term 4 hours chart here attached.

As usual, I’m open to questions and comments, thank you.

Advertisements

12 thoughts on “Short Term update: H4 chart @bitstamp

  1. mrblue

    Hi Enky,

    Great work.. But what do you mean with triangle will break.. In positive or negative direction ?:)

    Cheers,
    S

    1. eMGi

      I think positive 🙂

      “…Well i’ve read here and there about this pattern with lots of people worried about it, but usually this is a dangerous pattern when there is a clear downtrend and it’s not the case here, we are in an uptrend since last 18 December.”

      Great work.
      eMGi

  2. Raul

    HI Enky, First I would like to say that your predictions are really sharp, thanks for that!
    What is your opinion on the following regarding China. Do you think that at the end of January we will see a huge drop in value of the BTC and other coins?
    And what is happening at the moment… it is all very stable with many buy and sell walls. Seems like things are getting regulated by it self. Any opinion on that?
    Looking very much forward to your answer!

    All the Best

    R.

    1. Enky

      because of china new year starting on 1 feb? i think it’s already discounted in the price that deadline.
      For the walls in the book i think they are normal

      1. Lookz

        Hi Enki,

        I think the comment about china is for at the end of january, bitcoin currency is being banned from online trading and they can’t withdraw money anymore from btc china website after end of this month. This was the cause of crash last Dec I believe.

        Do you see think there might be any effect about the price for month of January?

  3. George

    Hey,

    Quite new to trading. What RSI are you using? See there are two lines visible. What is the white line?

    Using MT4 any tips on how to set it up with MT4?

    Thanx

  4. sarewok

    Hello Enki,
    What about the stock you suggested a while ago … it is loosing like 5-10% every day.
    Did you sell already?
    Regards

    1. Enky

      i don’t sell, my stoploss is equal to the amount of money invested, 2500 dollars.
      Life or death this round:)

  5. lologd

    I just hope that what we see during the January downtrend will be soon interpreted as a consolidation phase which will drive us to further highs and which shall make the market more attractive for traditionnal investors. I would bet on this better than on a breakout of your VWAP, even if it’s been tested a few times in a downtrend.
    And thanks again for your posts

Comments are closed.