Hi friends hope you are well and welcome to the new update on Zcash. Today the ZEC has finally bounced from the support of an up channel where the price action was moving since after the mid of March 2020. I want have also placed exponential moving averages with the time period of 10 and 21 and since the price action has crossed up these EMAs it is using them as support very well. And this time the price action is also likely to use these EMAs as strong support again. I have also placed the moon phases indicator on this chart. On the upside there are full moons and on the downside there are dark moons. The new full moon is appeared at the resistance of the channel that is showing that it will be difficult for the price line to cross up this level and the dark moon is appeared at the support of the channel that is a signal that it would be difficult for the priceline to break down the support of this channel. Therefore there are some neutral signals by these indicators appeared on this daily chart.
Bill William’s 3 Lines Indicator and SMAs:
As the price action has bounced from the support of the channel and also likely to bounce from the exponential moving averages as well. However here I have used the Bill William’s 3 lines that is also called Bill William’s alligator indicator as stop loss. This is a very powerful indicator to identify and catch the bearish and bullish trends. I normally suggest not to not to sell the asset or not to take exit unless the price action breaks down these three lines. This indicator contains three moving averages the smallest one is the 5 the other one is 8 and the biggest moving average is 13. The smallest is called lips the middle moving average is called teeth and the biggest time period moving average is called jaw.
Whenever the smallest moving average moves above all the other moving averages and teeth moves to the centre and the jaw moves below all other moving averages then it is called an opened alligator mouth that is a bullish single. And whenever smallest moving average moves down below all the other moving averages and the biggest moving average moves above all moving averages then it is called that the alligator mouth is closed and that is a bearish signal.
At this time the bill Williams lines are moving sideways and the price action is also moving sideways with these three lines, however there is possibility that sometime these three lines give you the false signal. Because these lines are very fast moving averages with the time period of 5,8 and 13. Therefore I suggest to not use this indicator alone, always use this indicator with the combination of some other indicators. For example here I have used the simple moving averages with the time period of 25,50,100 and 200. And whenever the priceline cross down the bill William lines and the alligator mouth gets closed then we should see that whether the price action has broken down the support of the simple moving averages of 25, 50, 100 and 200. I yes then we can take exit from the trade as stop loss. If any of the moving average is saved and not broken then we should wait for the price fine to take bounce from the moving average or otherwise we should consider that the stop loss is triggered.
On the daily chart it can be easily seen that we have received such false signal from 11th May to 15th May 2020 when the price action broke down all 3 Bill William lines and alligator mouth was closed. But if we watch the simple moving averages with the bigger time period on the other chart then the price action was having very strong support of 200 simple moving average. Therefore price action bounced from this simple moving average and started next bullish move.
Bill William Indicator:
You can also watch the below video for better understanding
Simple moving averages:
This big bullish Gartley can lead the priceline to achieve highest price:
now I would like to recall the very big Gartley move that is formed by the price action of Zcash on the monthly chart. I have already shared this pattern in my previous articles as well. At this time ZEC is entered in the potential reversal zone of this pattern and I am expecting that once the price action will cross up the 0.786 Fibonacci projection of A to D leg then it can lead the priceline of Zcash to achieve the highest price ever in the history of ZEC.
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Conclusion:
So far the price action of Zcash is giving no clear signals to break out or break down however untill it has strong support of the moving averages it can make more upward moved. And the big Gartley can lead the price action to cross the previous highest price. And As per poloniex exchange it has been traded at $9000 in 2016.