It is critical for anyone who is trading crypto to have the best research and information at their fingertips. However, that is not enough. You also need to be disciplined and thoughtful when it comes to trading, especially when the stakes get raised or the market sees some volatility.
Many people do not assess themselves accurately, and when you look at most of the main cognitive biases, they mostly fall into the overoptimism category. As soon as you get into something that people feel like they know how to do and obviously, that would be true for investors, most people become overconfident.
There’s something called a better than average effect. For example, if you ask people how good of a driver do they think they are in comparison to the population, something like 90% of people put themselves in the top half.
It is the same thing with investors, most of whom are going to rate themselves more highly than they should. You also get the illusion where people think they have more control over their outcomes than they do.
Under those circumstances you need to think about mitigating downside outcomes. This is critical because when you have less accuracy in your prediction models there is a higher probability of receiving an unpleasant outcome. This first way is to make sure you have a really good quitting strategy. So what do I mean by that? The higher the uncertainty, the more you should value liquidity. Stop-losses are another valuable tool.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 18,917.65.
The projected upper bound is: 25,833.10.
The projected lower bound is: 21,838.64.
The projected closing price is: 23,835.87.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.6502. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 77.99. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 27 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 198.309 at 23,637.949. Volume was 64% below average (consolidating) and Bollinger Bands were 151% wider than normal.
Open High Low Close Volume 23,439.641 24,037.400 23,206.240 23,637.949 226,975
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 22,154.60 18,455.38 12,672.93 Volatility: 59 70 52 Volume: 885,387 821,506 652,353
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 86.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 7 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.