February 8th, 2022, Crypto Chartbook — Stacking bitcoins winning edges

  • Time of day
  • Oscillators for ranging markets
  • Indicators for trending markets
  • Supply/demand zone identification (VWAP=volume weighted average price, in addition to support and resistance lines)
  • Inter-market relationships
  • Leading/lagging (relative strength within a sector or group)
  • Candlestick pattern
  • Volume
  • Time frame relationships
  • Action-reaction principle
  • News
  • Day of the week
  • Swing leg count
  • MAE(=maximum adverse excursion)
  • Mathematical/statistical edges like standard deviation

BTC in US-Dollar, daily chart, how we stack odds in our favor:

Bitcoin in US-Dollar, daily chart as of February 8th, 2022.
  • Previous day retracement (action-reaction principle)
  • Small range Doji for tight stop and possible reversal indication
  • VWAP (blue histogram to the right of the chart) indicating a supply zone
  • Scheduled ECB news item out of the way
  • Time of week
  • Time of day(we entered near the close of the daily candle)
  • Extended from the mean(blue line, standard deviation)
  • Commodity Channel Index(CCI). A momentum-based oscillator useful in congested sideways channels, gave the prior day to execution indication of a long entry(yellow arrow)

BTC in US-Dollar, weekly chart, well-positioned:

Bitcoin in US-Dollar, weekly chart as of February 8th, 2022.

BTC in US-Dollar, monthly chart, early bird:

Bitcoin in US-Dollar, monthly chart as of February 8th, 2022.

Stacking bitcoins winning edges:

In short, you want to have a clear instruction sheet on what to do in whatever market condition bitcoin throws at you. With a set of tools broadly covering all these variants and measuring them, you will be able to act without hesitancy. Then you can hope for the best, since you planned for the worst. Risk control is the core of each advanced trading approach!



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