02/10/2018

Lets start with some common terminology we will be using today:

RSI - RSI stands for "Relative Strength Index" - Rated from 0 to 100, RSI helps to determine if something has been oversold (too much has gone out for its value), overbought (too much put in for its value), or is alright. An RSI of 50 is good, anything below 40 heavily indicates a buying culture, whereas anything above 70 indicates a heavy selling culture.

MACD - Moving Average Convergence Divergence - This is gathered by subtracting the EMA (Exponential Moving Average) 26 by the EMA (Exponential Moving Average) 12. Positive numbers are good, negative numbers are bad.

Bollinger Bands - The highest high and lowest low we should conceptually see in an extreme bull or bear market on any given day. It is 2 standard deviations away from a simple moving average, or SMA. 

On Balance Volume - Volume flow to indicate pricing

Now then, on to the chart:

We are using a 4h today for predictions.

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Now then:

The RSI for the day at time of writing (roughly 8 AM, as I sip my morning coffee and the dogs fight with eachother), is roughly 59. As said before, RSI is an indication of positive or negative trending. The MACD is not shown in the above photo, however for reference it has upturned in the last day and gone positive. I am on a shorter scale than yesterday's post, as yesterday was referencing a 1d chart. Today we are using the 4h, a slightly better predictor for short term. On the 1d chart, we would see the MACD still recovering, however starting to upturn.

However, what is really interesting is that we see a high OBV (on balance volume) at 10.39 Million. A high OBV can indicate that the momentium is not gone, and we may be on a path upward. In this case however, when we recognize that the short term RSI is overbought, even though the OBV is high and the MACD is upturning, we have one other resistance to look at.

The Bollinger Bands are high and low limits, as discussed. Breaking a bollinger band limit happens rarely, and when it does its typically short lived. In this case, we have broken it and appear to be hovering at it. What this means is we should see a downturn and correction below this point. At this point in time, our closing should be somewhere between 140 and 150 USD. My daily suggestion is to sell 25% and rebuy in that range.

 

As always, I am not a financial advisor, nor am I YOUR financial advisor. Any advice I give here, I follow myself. However, if I am burned, that is my own doing. So, at your own risk, decide to heed or follow my advice.