Yellow, the Color that Predicts Dump of Bitcoin

25 ก.พ. 2019

Bitcoin is famous for high volatility and all kinds of traps that happen at anytime. When a dump ended a bullish run, people got sucked. Is there a way to lock maximum profits from your existing long positions and to avoid opening new long positions before a dump?
The solution is the color Yellow. Yellow represents OverBought, which is one of the seasons of market life cycle in "9 Seasons Rainbow Indicator". Let's have a look at two related seasons' definition:
OverBought (Yellow): may have defined a top or resistance, can happen in range, evolves into CrazyBought (Lime) or Bear (Red).
CrazyBought (Lime): going up in a high volatility, evolves into Bear (Red), OverBought (Yellow), or BullRest (Light Red).

When OverBought (Yellow)appears, it indicates that Bull is encountering certain resistance and the speed of rise is slowing down. There are two ways after that: one is to drop down, the other is to overcome the resistance and continue the rise. The first way has higher probability than the second one.
The color pattern (Let's call it Yellow Zone) that defines a possible top:
OverBought (Yellow) in small time frame(15m or 21m or 30m - the more the better) + OverBought (Yellow) or CrazyBought (Lime) or Bear (Red) / BearRest (LIght Red) in bigger time frame (1H-4H, the more the better).

The solution to prepare for a potential dump:
1. No new long position in Yellow Zone
2. Raise the stop-limit of your long position to the bottom of your current price level or platform, with a bit distance lower than that if you really want to keep the position. In case the price continues to rise, you still keep your long position; in case the stop-limit is triggered, you keep maximum of your profit. Then you can reopen it when the drop is bottomed with OverSold (Blue) or the price breaks the latest top and it becomes Bull (Green) or CrazyBought (Lime).

The following is the instances of Yellow Zone since November 2018:
20190224 05:00
20190221 01:00
20190219 19:00
20190219 02:00
20190218 09:00
20190216 16:00
20190215 12:00
20190206 00:00
20190201 23:00
20190131 06:00
20190124 22:00
20190123 04:00
20190118 01:00
20190108 19:00
20190105 20:00
20190102 15:00
20181223 13:00
20181220 18:00
20181219 16:00
20181212 18:00
20181208 08:00
20181208 05:00
20181204 16:00
20181201 18:00
20181128 17:00
20181118 21:00
20181110 18:00
20181106 17:00

This method does not indicates all tops or dumps, however when Yellow Zone appears, some preparation can be made in advance.
Short traders may find this method helpful as well

28 ก.พ. 2019

บันทึก

---------- Disclaim ----------02/2019
This is only a personal opinion and does not serve as investment nor trading advice.
You should make their own decisions, carefully assess risks and be responsible for investment and trading activities.