I need two charts to explain-BTCUSD and its grind higher. This is a four hour chart.
If you are long, here are the positives:
1. Currently multiple buy Fractals (5 highlighted in green box).
2. The lower indicators under the chart are CHOP/ Chop Zone; readings below the shaded area (38.2) indicate a strong trend. The solid green indicates up.
Please note that the CHOP line has now moved below the shaded area. This indicates a stronger trend.
3. The top lower indicator is phase energy, and this is positive, very strong.
4. The alligator is feeding in the uptrend.
5. RSI / Stochastic (top indicator) is strong.
6. Prices are trading above the Ichimoku Cloud .
7. Prices are trading above the thick red Ichimoku Cloud conversion line. This is a support level.
8. Prices are trading above the Ki jun-Sen baseline of the Ichimoku Cloud and this has been HEADING HIGHER.
9. The 5/34 Momentum indicator (top middle) is strong. It's off the chart. The histogram within is rising. This is a positive divergence.
There are far more positives than negatives.
If you wish to exit or go short here is what to look for:
1. Sell Fractal;
2. Sinking (red in color) phase energy bars that approach the zero line;
3. The CHOP line (under chart) begins to rise away from the dotted line into the shaded area (this would suggest the end of the up-trend); or
4. The CHOP line heads lower out of the shaded area while the CHOP ZONE turns red. This would suggest a change in trend (down) that is strengthening.
5. The RSI/ Stochastic (top indicator) gets to 80, rolls over, and heads lower.
6. The 5/34 indicator (top middle) gets to near its top, rolls over, and heads lower.
Now, please go to the next-BTCUSD chart. It is daily. I will attempt to show you another (possible) upside breakout perspective. Don.
If you are long, here are the positives:
1. Currently multiple buy Fractals (5 highlighted in green box).
2. The lower indicators under the chart are CHOP/ Chop Zone; readings below the shaded area (38.2) indicate a strong trend. The solid green indicates up.
Please note that the CHOP line has now moved below the shaded area. This indicates a stronger trend.
3. The top lower indicator is phase energy, and this is positive, very strong.
4. The alligator is feeding in the uptrend.
5. RSI / Stochastic (top indicator) is strong.
6. Prices are trading above the Ichimoku Cloud .
7. Prices are trading above the thick red Ichimoku Cloud conversion line. This is a support level.
8. Prices are trading above the Ki jun-Sen baseline of the Ichimoku Cloud and this has been HEADING HIGHER.
9. The 5/34 Momentum indicator (top middle) is strong. It's off the chart. The histogram within is rising. This is a positive divergence.
There are far more positives than negatives.
If you wish to exit or go short here is what to look for:
1. Sell Fractal;
2. Sinking (red in color) phase energy bars that approach the zero line;
3. The CHOP line (under chart) begins to rise away from the dotted line into the shaded area (this would suggest the end of the up-trend); or
4. The CHOP line heads lower out of the shaded area while the CHOP ZONE turns red. This would suggest a change in trend (down) that is strengthening.
5. The RSI/ Stochastic (top indicator) gets to 80, rolls over, and heads lower.
6. The 5/34 indicator (top middle) gets to near its top, rolls over, and heads lower.
Now, please go to the next-BTCUSD chart. It is daily. I will attempt to show you another (possible) upside breakout perspective. Don.