in this post, I focus on finding the trend based on long weekly moving averages, like 200 WMA.
200 Weekly moving average plays a significant role as support or resistance level. it is applicable on BTCUSD chart, but not on STEEMUSD and XBTCAD so I replace it with WMA 180 for cad and WMA 100 for STEEM chart.
BTCUSD
Bitcoin bounced from last touch of WMA200 last week. some traders started to speculate new bull run and trend reversal, but I have a different opinion. The bearish market continues soon.
first reason: I have never seen a V down touch on a support level.
second: the bearish momentum needs more weeks to face a change in direction.
third:
in the chart you see the wma 200 and a support line I have drawn.as you see they have crossed each other exactly where the chart bounced back last week.
My scenario is: BTC will retest wma 200 in couple of weeks (in January) the good thing is WMA is still upward (slightly) so even if BTC breaks below that, there is hope for a reversal.
if the wma support breaks, $3000 will be a psychological support level and then the line I have drawn, depending on testing time.
Sideways
sideways are great opportunities for traders. if you realize the market trend and high and low levels, you can find a good margin at sideways. set you stp losses half or less than your profit margin and try to find a plan and strategy which wins minimum 50% of the times. it is not very difficult at sideway chart patterns.
cold winter and market!
in the next post I will bring up the STEEM chart and Bitcoin to Canadian Dollar, which I trade in and there is more things to learn from there.