All posts by jerry
(BLOGPOST #4 ) why it’s time to buy bitcoin – followup #3 – no volume no buy trigger…
(BLOGPOST #3 ) why it’s time to buy bitcoin – followup #2
In this video you will see how I break down my analysis to see why I said it was time to buy bitcoin in my May 23 2021 blog post. At the end of the video you will see that no entry has been signaled yet but why Bitcoin is setup for a buy entry. We need to see a buy signal as explained in the earlier blog post.
Often traders know when to enter but don’t know when to exit so I feel compelled to say this once again. If you buy long to take profit at the next overhead resistance level and take a stop loss exit if price falls below the next support level below…
Cheers and One Love, Jerry
(BLOGPOST #2 ) BITCOIN – WEEKLY MAN ON CHART–FOLLOWUP #1
We’re gonna carry over out Bitcoin chart from yesterday and overlay our support/resistance lines and Fibonacci levels with… THE MAN ON THE CHART…
I drew him on the line chart to clear up the noise so you can see him clearly. 1. Head 2. Left shoulder ( LS ) 3. Right shoulder ( RS ) 4. Neck 5. Left leg & foot 6. Right leg ( foot has not formed yet )
BITCOIN WEEKLY LINE CHART SAT MAY 29 2021 @ 7 26 PM
Looking from the perspective of the candle chart we can see that during this week price has bounced up off the foot ( the ground ) to go up and test the neck line.
The left foot represents the ground and when the right leg falls down to that foot it represents the balance point because that is THE GROUND. When you have both feet on the ground you hit the balance point. You are in balance when you are standing on two feet… Right…? We can say that price hit the balance point but we need to wait for the close of the week, tomorrow to see if the man ends up standing on two feet.
The fact that price bounced up off the ground should be expected since, if you fall from a height, you will bounce a bit before you come to rest, and we would expect price to bounce back up to the neck line before coming to rest.
These concepts are not cherry picking. These principles are taught in my video section on, ” TRADING THE MAN ON THE CHARTS.”
BITCOIN WEEKLY CANDLE CHART SAT MAY 29 2021 @ 7 26 PM
Now, from a technical standpoint we are setup to follow and project further moves of Bitcoin from the weekly chart perspective because we have some baselines.
1. Support/resistance 2. Fibonacci 3. 3rd wave ( as mentioned yesterday ) and now we’ve overlayed those with 4. Chart Man.
At this point I will throw in a little volume analysis. Notice how large the volume bar was last week as compared to this week. That was a large selling bar, 3 times larger than the volume bar for this week.
If we were to expect price to go lower next week we would like to see greater volume this week than we did last week. Since, we do not, this tells us that selling strength is getting weaker. In this case about 3 times weaker than last week. That’s not to say that price cannot go lower. But it is saying that short sellers better beware of selling short at these levels because the orders, at this point, are not supporting a continued fall just yet…
Note: Simply because I’m doing this analysis on Bitcoin does not mean that I am suggesting you trade Bitcoin. It’s just that cryptos are all the rage for the retail trader right now and it is my intent to show that cryptos follow the same laws of motion as any other trading instrument.
For that reason I have no bias between Stocks, Bonds, commodities, Futures, Bonds, Options, Cryptos, etc… I only care that an instrument trades more than 1 million transactions per day and has some volitility.
The only real bias I have about trading instruments is cost of entry or Margin. The lower the margin cost to enter a trade the larger trades I can afford to make. The larger trades means larger profits…
Cheers and one Love, Jerry
(BLOGPOST #1 ) WHY IT’S TIME TO BUY BITCOIN
- Bitcoin was intentionally talked down by the powers that be using Elon musk and China
- The pullback is now testing major support of a 3rd wave pullback
- Currently testing the 50% fibonacci trend level. The level held at the end of last week and currently still holding this week
- Wait for the end of this week ending may 30 2021 before making a decision. A weekly close below the 50% fib level would expect a continuation down to the 61.8 fib level below. The move has already moved so far down without a pullback that shorts hold a lot more risks than longs. If 50% holds for the week it will be time to drop down to the daily chart and wait for a bull pivot reversal…
- to be used in conjunction with the fibonacci levels are the current weekly support and resistance level. Any buy signal should be confirmed by a daily close above an overhead resistance line and any sell signal should be confirmed by a daily close below a support line below…
The above is the strict technical analysis on Bitcoin over the next couple of weeks but we must also consider the political environment. You should have noticed how more and more countries are talking up plans for their own digital currencies. These winds are also coinciding with the heavy fall in crypto currencies in general.
We cannot discount the very real possibility that cryptos have been a sucker play by the new world order. Get you on the crypto train by letting you believe that the block chain technology will give financial freedom to the world but instead, it’s a trap and now they are ready to spring that trap. Notice how countries are starting to ban cryptos in order to facilitate their own digital currency.
Those whom have been with me for a few years know that is what I’ve said cryptos are about from the beginning. Many people have been flat out angry with me because I’ve never given cryptos the thumbs up. But I digress. I’ll have more to say on that in the coming days and weeks.
