Successful Strategies in a Dynamic World Covering Equities, Bitcoin and Crypto-Assets
The engines are revving
Previously, I noted the alignment of indicators as an indicator of forthcoming price strength in the Crypto-asset sector. That alignment is being reinforced by the most recent data, and key price levels are within hailing distance. If Bitcoin, Ether and LiteCoin prices rise by $220, $8, and $5 per coin, respectively, then one of the key positive indicators of exceeding the 200-day moving average will be in place.
Deciding when to act is a difficult process given the emotions that often sway decision making. Keeping emotions at bay, focusing on facts and indicators from the market, and trusting in your analyses are often the path to success.
I look at many pieces of data in weighing when to act versus observe. In the Crypto sector, the number of positive buy signal indicators are aligning in a way that I find very compelling. The focus for me is to look at behavior of the market participants (are they active or passive in engagement with the many assets that form the market), the combination of price and volume moving in tandem to give support to market confidence that it is time to be long or short, are changes in price trends overcoming historic points of resistance, are daily price highs exceeding prior days highs and are daily lows in price exceeding prior days lows in price, and are prices within a day expanding the boundaries between highs and lows, with closing prices at or near the highs.
The combination of all of the above, when aligned in the same direction, provides a basis for taking action. Right now, my models are ALL confirming that it is time to invest, and so I have and am doing so. This is not investment advice for any reader, as my models are complicated in structure and in this young market are not validated with deep historic back testing, yet they have encouraged me to the point of getting off of the sidelines. We shall see how these assets perform from this point forward until I see a sign to reverse course.
BTW, the absence of volume that troubled me in the posts below is fading. Thirty day volume average just surpassed 60 day volume averages for BTC. The market is more active and that is a positive event in a moving market.