Trading is complected, because Price is superimposed wave of price activities on different time frames.
When trends on short, medium and long term time frames move in the same direction, price trend is clear, as a whole.
On the other hand, when trends on different time frames against each other, range happens and price trend is hard to predict.
This happened within the past two days on BTCUSD.
On short term to medium term time frames (15 minute -> 2H), there were multiple Oversold/Support (Blue) signals, which indicated strong support.
On long term time frames (169 minute, 4H), there were Bear (Red) signals.
On 339 minute, there was Overbought/Resistance (Yellow) signal.
On 4H, 678 minute, there were Bull Pullback (Light Green) signal.
Blue and light green is for Bull, while Red and Yellow is for Bear. The against-each-other pattern reflects the range situation of the market. Bull and Bear both believe their side will win. Nobody has 100% certainty to say which side will win.
So a good policy to handle this situation is staying away from trading until the range is broken.
A useful signal given by "9 Seasons Rainbow Multiple Time Frames Pattern" is Oversold / Support (Blue) -> Crazy Sold (Fuchsia), which indicates an attempt of break down is going. If it reverses, Fuchsia turns back to Blue, it indicates a failed breakdown.
Yesterday, there were two attempts to breakdown the support, the first one failed, while the second did breakdown.
Sometimes people make judgement by combining all the information they get, including their experience, signals from the indicator, ideas from other traders, news, or even their emotions. In my latest idea "BITCOIN GOT VALID SUPPORT, BULL MAY TEST 4050 RESISTANCE SOON", I assumed the failed breakdown will lead to retesting 4050 resistance, which has been proven to be the opposite of the real price move. It is a lesson for me: it is important to focus on objective facts and ignore all kinds of noise.
When trends on short, medium and long term time frames move in the same direction, price trend is clear, as a whole.
On the other hand, when trends on different time frames against each other, range happens and price trend is hard to predict.
This happened within the past two days on BTCUSD.
On short term to medium term time frames (15 minute -> 2H), there were multiple Oversold/Support (Blue) signals, which indicated strong support.
On long term time frames (169 minute, 4H), there were Bear (Red) signals.
On 339 minute, there was Overbought/Resistance (Yellow) signal.
On 4H, 678 minute, there were Bull Pullback (Light Green) signal.
Blue and light green is for Bull, while Red and Yellow is for Bear. The against-each-other pattern reflects the range situation of the market. Bull and Bear both believe their side will win. Nobody has 100% certainty to say which side will win.
So a good policy to handle this situation is staying away from trading until the range is broken.
A useful signal given by "9 Seasons Rainbow Multiple Time Frames Pattern" is Oversold / Support (Blue) -> Crazy Sold (Fuchsia), which indicates an attempt of break down is going. If it reverses, Fuchsia turns back to Blue, it indicates a failed breakdown.
Yesterday, there were two attempts to breakdown the support, the first one failed, while the second did breakdown.
Sometimes people make judgement by combining all the information they get, including their experience, signals from the indicator, ideas from other traders, news, or even their emotions. In my latest idea "BITCOIN GOT VALID SUPPORT, BULL MAY TEST 4050 RESISTANCE SOON", I assumed the failed breakdown will lead to retesting 4050 resistance, which has been proven to be the opposite of the real price move. It is a lesson for me: it is important to focus on objective facts and ignore all kinds of noise.
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A Trading Indicator Artisan and JAVA Programmer, dedicated to enhancing traders' productivity.
A Trading Indicator Artisan and JAVA Programmer, dedicated to enhancing traders' productivity.
This is only a personal opinion and does NOT serve as investing NOR trading advice.
Please make their own decisions, carefully assess risks and be responsible for your own investing and trading activities.