In future I will use the basics I discussed in the volumes chronicles alongside daily practical examples to analyze crypto currencies. I introduce the concept of channels alongside an analysis.
Today we will be looking at bitshares, please see the stock chart below
In the daily BTS/BTC chart the volume chart, a clear decreasing pattern can be identified with a breakout above this trend coinciding with the current green bar yesterday. This is a sign of reversal and lends strength to the uptrend.
The first signs of a reversal in trend need to be taken with a grain of salt, but risk-seeking speculators can now start buying into BTS to take advantage of this Bull Run early. The payoff will be quite large. In the event another high is made on increasing volume, this trend will likely continue.
An analyses of the current price trend is necessary to find a good entry point, that is:
The trend is currently trading in a channel, with the current position being in the middle of the channel. I would recommend setting buy at around 0.000012 and waiting for the market to hit this entry point. I will keep an eye on this trade and mention any exit signals when and as I see them
Till next time,
Tinus
** Images courtesy of tradingview.com
