If we look at the 1hr chart, at the moment of typing this, ADA is fighting between its Bollinger Bands Midpoint and its 50EMA. If ADA breaks downwards through the 50EMA then we may drop to our Base Line (Kijun Sen) or our 100EMA. If we keep above the 50EMA & above our Bollinger Bands Midpoint, then we may see ADA try to head back over its POC and attempt another break at $0.4 this week. After ADA's rise over the weekend a slight pullback should not be a shock to anyone. This is just a short-term outlook, longterm, ADA is looking absolutely fantastic and we haven't even had the Goguen update or the supposed Coinbase listing. If we do drop lower, i cannot see ADA dropping into the Ichimoku Equilibrium Zone on the 1hr. For me it's looking really promising ADA will be above $1+ by the end of march. I could say sooner, but i don't want to jinx it 😅. Please see the above screenshot for more details of where our support levels are. I hope this is helpful.
Note; My point of doing these charts is not really to say, place a trade here, cash out there, spin around and jump up and down, no. Rather its to show how one can use the charts and various indicators to see what's going on in the market to enable you to make conscious smart decisions yourself when investing your hard earned cash. I hope this is helpful.
Commentaire
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I noticed i made a "Leading Span A,B" mistake on the above chart, here is the updated chart 👍
Commentaire
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Again this is only looking at the the 1hr. I feel something big is going to happen, just look at that cluster of support all at the same level, Conversion Line (Tenkan Sen), Base Line (Kijun Sen) & the Bollinger Bands Midpoint basis all at the same level with the 50 EMA slightly underneath. At the moment, ADA is fighting against its Bollinger Bands Upper Band as Resistance and the Conversion Line (Tenkan Sen), Base Line (Kijun Sen) & the Bollinger Bands Midpoint basis as its massive support. Of note is that the 50EMA on the 1hr has been a major area of support for the last 24hrs. This will be a real test, if the test fails & if the 50EMA fails, ADA will possible go back to its 100EMA on the 1hr. But it's looking very hopeful we'll attempt another break upwards soon because that 50EMA is strong MOFO 😜 and now it's backed up by its cluster of support. I hope this is helpful. Good luck
Commentaire
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Wow, what a come back, if ADA closes the 1hr candle above the Leading Span A (Senkou Span A) Cloud Resistance and turns it into strong Support then we are back in business. I hope you bought the dip. Good luck
good stuff. thank you for taking the time to post it. I have noticed, and saw in someone elses post, that the base line is a pretty good signal for a long or a short. the chart you have up is the 1 hour. if you look at candles closing above the baseline, check the percent drop from the close... look at the candles that close under the baseline...check the percent drop. also check to see how often there is a pretty good move up or down depending on which side of the base line the candle closes. for crypto i have read that the settings for the ichimoku cloud should be 20 60 120 30
entertheroach
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@MWK-AKK, yes but only if the Lagging span is below the price from 30 periods ago. If the Lagging Span is inside the price from 30 periods ago then it may not turn out to be a short because inside the price is uncertainty/Trading sideways. There is a lot of debate about which settings to use. I use the 20,60,120,30 and that has worked perfect for me for Crypto.
bulloclock
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Great chart!
I'm new to trading and recently learned to apply Ichimoku indicator to the charts. The BB seem to be quite useful from your chart and I will "steal" this idea and try to apply to mine if you don't mind :P
Could you please share which other classic indicators you use for confirmation of trend apart from the ones present in the chart? And regarding price retracements, do you apply as well Fibonacci technique?
Thank you for sharing!
entertheroach
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@bulloclock, Indicators i like to use are ADX DI SMA for trend, RSI for momentum, Overbought and Oversold, STOCHASTICS Momentum Index for momentum, Overbought and Oversold. Bollinger Bands for price & Volatility. Parabolic SAR for trend, VPVR to show the main area Point of most volume traded. I do use Fibonacci retracement, Pivots as well as Pitchforks, i also add support and resistance levels like a previous high or low level, symmetrical triangle ect. It's always useful to have a couple of EMAs that you can turn on/off on your chart, i like to use 10, 20, 50, 100, 200 EMAs as they can act as potential support and resistance levels. It's best use indicators that show different things, so if you use RSI for momentum, Overbought and Oversold ,then you won't need STOCHASTICS, If you use ADX DI SMA for trend, then you don't really need to use Parabolic SAR because they show the same thing. I hope this is helpful. At the moment i'm focusing back on the Ichimoku cloud, i also did a brief introduction to it which you may find helpful.
bulloclock
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@entertheroach, Thank you for the indicators and your analysis! Will definitely give it a thorough read on your Ichimoku post as well.
entertheroach
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@bulloclock, Depending on whether or not you are trading longterm, short-term or hodl-ing, it's best practise to check different timeframes, because you may think something is about to happen on the daily but if your not getting confirmation from the 1hr or 2hr charts ect, then that daily possibility may not happen. Think of it as a cascade effect. If the price, drops below the Leading Span B on the ichimoku Cloud and into the Bearish zone on the 30min chart, then on the 45min chart, then on the 1hr chart, then 2hr ect ect, there's a possibility it may drop into the bearish zone on the daily. I hope this is helpful.
bulloclock
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@entertheroach, Yes, I think I understand the idea. This is as well the simplicity of Ichimoku analysis, it can be done the same way on different time frames. I'm basically looking for mid-longterm investments, but would rather be ready to take profit before/at the beginning of major corrections, and entering long again at lower price when all the indicators are giving green light.
In my opinion Ichimoku (in combination with other signals as you explained above) is quite useful for giving a good probability for entering long, but I find myself sometimes "lost" when the price is above cloud and all the indicators are looking good. So here I would say your suggestion fits very well: monitoring for change on shorter timeframes to spot a possible reversal. This and combination of trendlines and triangles could be a good strategy to spot a major trend reversal?
Thanks again for your time and help.
entertheroach
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@bulloclock, Also look for bullish divergence so if the Price is making lower lows & an oscillator like the RSI is making Higher Highs, that could be the sign of an upwards price reversal. Bearish divergence is if the Price is making higher highs & an oscillator like the RSI is making lower lows, that could be the sign of a downwards price reversal. It's best to check the previous timeframe to the one you are using to try and see if there is an earlier confirmation. 👍
bulloclock
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@entertheroach, Thank you again! You have been very helpful ;)
elkadro
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This is all nice BUT where is your divergence analysis? It is showing reversal signals on 4H and even daily. If it needs to continue up it needs to break the last ATH with momentum (late entry point) or otherwise it will cross the bollinger middle towards the 50EMA. If it crossed the 50EMA downwards, its truly bearish scenario