Relative Rotation Graph in Crypto Trading, Bitcoin Live | BTC ETH LTC ADA STEEM XLM BTC USD
Good. Afternoon, everybody it is, 12:59. In, the afternoon. Central, Standard Time on, this beautiful Tuesday the 31st, of July last. Day. Of the trading, month, second. Day of the trading week and we, are going into a new month we often, see in. Every single market, some type of. Directional. Shift, or, combination. And, these. These, month. Of July into August and, yeah. And if. You don't know that August. Is generally. For. For. Stocks, has, an upward, bias so, the markets. In general, typically. Have a bullish. Outlook. Going. Into all. Market I mean looking. Just at the. Dow NASDAQ. And. The. SP. The three sisters, they. All have a fairly, upwards, bias, in. August. But. How does that affect cryptos well, not. Much, we've, gone over these. Kind of. Things. Before regarding. The, trends. And how long, these trends last and where do we see the the, continuation. Moves, in a bull market after the consolidation and, we're, going to kind of get into the little bit today what I really. Wanted to kind. Of start off with just a little bit of an some analysis, here we're, continuing, this is the close of yesterday, we'll get to the actual. Pull. That up now. Hold. On what the world is going on here. There. Okay. Taking, a peek at. Bitcoin. We. Can see that we've started the trip we had a bit, of a rally yesterday. Traded. Up the minute we started to D the lagging span went down again below the hourly, cloud. We had hello. Lamont. How are you doing. Welcome. Fell. Right through and, now we are testing the upper, band of this previous, flagging. Channel you, know all the last week of the week before a, little bit, discussing. That the return, to 7500. There's 75 56, value area that, is a very. Probable. Zone that's where we're seeing price kind of drift. Towards, I. Believe. That that will be the next opportunity, to, initiate into. Some. Long trade opportunities. But. We can see the the, whole market. As a whole of course you know when Bitcoin is going down that drags, everything else down if, we take a peek at, card. On Oh for, example card, on Oh actually. In this, perspective. Yeah. Card. On Oh sitting. Below. On it's, musical. Harmonic, level here at. The rail level this these aren't the fit these aren't the Fibonacci levels, these are those musical. Rotations. But it. Looks, like we found some support at the 14 handle. Looking. At maybe. Steam. Or do, we have steam drawn over here. Yes. Steams. Sitting, at its 180. Its. Gantz square of nine so a lot, of things sitting at a pretty, strong level of support, at the moment. With, Bitcoin. Just. Doing. Its thing this is pretty normal, rotation we're, observing and you. Know we've actually you, know if we want to pull this out a little bit and look at this a little. Bit more broadly. You, know we've had if you're an Elliott Titian we've had a pretty, strong, up. Drive, I, mean, really, we've seen a pretty clear. Motive. Wave up. If. You. Like. Elliott, a lot if. You follow it religiously. God. Help you, pun. Intended. But. I mean. With we're probably completing, an ABC, wave here to. Get. A cleaner, chart, out. And. Then. I really want to show you something kind of neat in the. Relative, rotation graphs. So. Bitcoin, the. One thing I do want to point out is that we've had a pretty, cool. These. Are these, are the weekly points, of control. Or. Muck sorry these are the monthly four monthly. Volume. Profiles, and showing the monthly points. Of control and, you. Know we've we've had a pretty clear. Bottom. Found last month and now we're, into July and the we're, still above that point of control. You. Can think of volume. Profiles, as, as peaks. And valleys as, well so essentially. What we're looking at is an, inverse, head-and-shoulders. Based. On the. The. Volume profile, itself. So. Just keep that in mind and certainly. We're seeing price. Last. Day the month wanting. To show a little, retracement. Which is fine, normal, expected we, should anticipate that. But. If. We're an Elliott. If. You're an Elliott Titian. Probably. Observing. This. Happening. And playing up and. Then. We. Have. Where. Yet. The. Corrective, wave I should have called it an emotive. Wave. And. Then we have our corrective, wave here. Just. Kind of roughly drawn that. Works out pretty nicely and yeah. Just watching that play, out really. We could we could expect it to come, maybe down to that law well, this valley areas just what we looked at on the other chart, relative. Rotation graphs getting. Into that now. This. Is a piece of software Optima. By market analyst this is a professional, suite of software it's. It's. My favorite charting software it's, amazing, it's got a amazing. Suite of tools it's kind of spendy so, unless you're planning on getting into.
This. Field as a career. It, would be a waste of money but but. It's, phenomenal, one of the things I really like about. This. Software. Is the relative, rotation graph so. How. You read, these and now we're gonna look at the this is the 4x this is a relative rotation graph of the forex markets and how, you read these is that you have these four quadrants. And I'll, zip through this real quick cuz I don't want to I don't want to spend a whole lot of time explaining it but we have a we, have the leading quadrant, and the top right and the bottom right the weakening quadrant, and then, the bottom left is the lagging quadrant, and the top left is the improving quadrant, and it's, this is this is priced against. Some type of index, or or, or, something else so these, are all currencies. And this, is showing their, performance. Against, the US dollar and. When. You see things really. Inside, the center that means that they're heavily correlated, with the dollar and they're really not going to be great opportunities to trade so. We can see that there's the Hong Kong dollar the. Omani, rial Swedish. Krona. Yeah. Material things that we typically don't trade, in forex, but these are all very very heavily correlated, with the dollar so they're not fun to trade so how, you read a relative, rotation graph is, pretty simple so anything in the leading. Category. Says, that this, you. Know let's see we've got the so. The, or, the, Uruguay Indian herb Lanie and peso is. Outperforming. The dollar by quite a bit it's actually like, if you think of it, oh I, remember watching the video on this, explanation from, the CEO, of market analyst he, said think of it like a car where this, guy is driving way ahead of the dollar right now and then, it's things travel and going cycles, they move into here. Into. The weakening, category, that tells us that they're slowing down their momentum slowing down they start to drop in price and then, when they finally get into dragging, that means that they are actually. Probably experiencing, some type of flash crash or or or a period of significant. Price draw down over the short period or a long term bear market, in their bear move in that, instrument, and really. What ends up happening is, this. Is the only zone I carry to really look at yes.
I Want to find things that are sitting here in the. Lagging. Zone because, this means that they are in the bottom of their cycle before they start to return, now not everything travels, in a perfect circle and what, I've you know we can watch this. Rotate, and we can see, how things move and how, they moved in the past, and. I. Mean, a lot, of things all, move together but the, ones we're looking for the outliers and so, for. Instance the British Pound once the British Pound starts, to curl up and and. Starts. To point towards, improving. That, Pound. Pairs against the dollar should, be the focus same way over here like I've been bullish, on gold for the last couple weeks because we've had gold. Finding. A bottom and clearly, it's showing that it's improving that it's gaining momentum and, once things start to drift or point, towards, the, improving, areas, where we want to by, I think, more importantly, what relative, rotation graphs helped me do is it, helps me avoid buying, something that has already had its run so the, New Zealand dollar for example I like to trade the New Zealand dollar US dollar pair, and I'm. Not gonna really want to be participating, in any long trades with I'd only be looking really to short it once it travels into the leading category. Okay so. What. I did is I created one, for crypto. Currencies. And. Unfortunately. This is the only a fortunate, thing about. About. Kryptos. Is that. Market. Analyst market analyst only, has end of date data and only for a select few pairs, which is really frustrating because another piece of software I really like they actually do live data by using crypto, compare and you can look at. Thousands. Of crypto currencies with their euro pairs the, yen pairs the dollar pairs the, you, mean just, tonnes but. These are the dollar, pairs that, are available from, Optima, for us to get data on rated, against the dollar and, so. When I'm looking at, this relative. Rotation graph, again. If I if, I were to zoom out. We. Can see there's an out layer here Excel M so, stellar lumens, is is way way, way out there and, what. This is telling me and it's pointing down is that I am NOT interested in participating in, a buy with with with this, guy this, guy's way extended in fact. A lot of these pairs are showing. That they're pretty extended, but let's, let's just kind of zip it back to where. We at here this is. May. 28. And. So if we're just kind of moving this chart along and, we're, observing, what's happening. Remember. The, pump, that we got in the. Etherium. Classic, that's what this one is here, that. Was due to the. Coin base saying that they were going to support that. Platform. And. As. We keep going. We. See. To. Break away here, this. Is right when we started to hear that. Cardinal. And. Excel. Laments, and I think, Z cash there. Are five five. Crystals that coinbase. Was looking at for adding on to the platform so we saw that happening, and that's where we start to see them really take off here and then. Finally we're coming to now so. Let's. Take a look at car down for a second so here's car down oh all. Right it's, pointing, down which, is telling us that it's losing. Pressure it's losing momentum relative. To its peers and against. The dollar and, what. Does that look. Like on, our charts. Yep. That is exactly. What we have, well me, if I look at the right one so. If I'm looking at card on oh I can get the right chart. If. I'm looking at that that, dollar pair. I can, see yes definitely, that we have had some selling, pressure here, and you. Know in fact we've essentially. Wiped out the gains of the last. Two. Weeks, okay, we've we've, ended up forming a, bottom.
Here, And we've, pretty much wiped out the game last two weeks gains and, they. Mmm. Three, four day period, so this. Nosedive. Down in, Cardinal is, reflected. In. Here. Okay, so we have it coming down here now this is not telling us how, far, prices. Are going to go with, card on oh this. Is just telling us that if we see a steep slope down, that's pretty, much telling us that we've got a that. We have a a pretty. Good chance of. Of. Prices. Flattening. Out and then, consolidating. If if, it is a kind, of a wavy. Drive that means we're getting a sustained drive down but if there's, a there's. A literal, dead, cat being dropped from from, up above is what's happening then. You. Know over the next couple days we'll definitely see car dolls sitting around in here so. Again. When. I was talking about these these these uh these, zones. Nothing. Here, looks like it's a good long trade right now okay. If. You. Could short. Stellar. Lumens that would be the thing to short shorting, bitcoins, actually, a good idea shorting. Z. Cash is a good idea strat. Next. Which. It's very unfortunate that this that, next is actually. Not. More, valuable because it's a it's. A it's a, pretty good platform, I. Mean. There's. Better ones coming out obviously but yeah. It's established, so, if I'm looking at these charts where's the where's. The only like real indication, of a good buy if I'm not shorting, on crack in or if. I if I if I don't. Have ten grand to put into BitFenix or if I don't, have a. A. LLC. Set up for me to open up a corporate. Account on. Another. Exchange where's, my only trading option for, going long and that's really we're looking at the, etherium. Classic, and so. They're. In classic, is drifting. Here and when, I see if they're in classic, getting, into the, the. Lagging, zone, that. To me is the opportunity, to start looking at taking, a long trade because this is really out of out of this chart at least this, is the only one that is. Indicating. That there may be a nice bullish, setup happening soon. So. Yeah it's a, it's. A pretty good, pretty. Good thing, to look at again relative, rotation graphs they are their. Proprietary. They. Are I think one, of the best, tools, you can, you can get a trial for Optima I'm not advertising. This, they have full. Disclosure, they. Have asked, me before to, use, like a link, to. Soar. Like an affiliate link and I don't believe, in doing that with trading software because, I. Don't. Want to make a buck off of you. Guys. By. Shilling, something out because I think that I. Think. That is that. How, do I set the, software, should, be good enough for me to want to suggest it I should not have to be incentivized with with money to to suggest, something like this as an educator, that is something. I'm not, willing to to. Really do. At. Least with trading software it's just it's just not but, motive. Wave and Optima they are fantastic pieces of software encourage you to try the trial again, it is a little spending to get the full suite but. You'd. Be hard-pressed to not. Try. It at least. If. I was long Bitcoin, and profitable would I close my trade new no. Not, at all. Nope. And I would be looking to well. Yeah I mean every time there's like a. Thousand. Or $500, drop in bit, as, long as it's below 10k, I'd, like. To buy a little bit of it. Bitcoin. If. You're. Trading, it like if you're if you're day trading Bitcoin. If your swing trading it over a period, of days or a couple weeks. I, think. The time to take profit, was probably, past I I'd, sit. I'd sit on my hands, and. Be. Looking instead for some, long, trade opportunities, but I. Mean. If you're if you're gonna hold it for a long time as to. To. Catch the next bull run I mean we just have to wait I mean we're getting we're next. Tomorrow. Can. I, put. Bitcoin, gold on the chart on this chart Muhammad. Or. Just. A regular or just a regular chart. I. Mean. Bitcoin is not going. Anywhere and. You. Know we, got August coming up and then. We have. You. Know September, starts, and we, start seeing the new the new like pump phase and crypto. Currencies so. Yeah. Mohamed, Bitcoin Gold's right here that that was taking, in those died - I really, like Bitcoin gold I've been actually, have a good amount of Bitcoin gold I think Bitcoin gold is. What Bitcoin, cash should, have been Bitcoin. Gold is. The. Philosophy, behind it is is very. Very much in line with Satoshi, nakamoto's.
Original. Plan. Bitcoin. Cash is not. Alright, let's, look, at Bitcoin gold. We'll. Do a little run, down with that. Actually. I did, a. Webinar. Not. Very thick. Maybe last year was. Yeah. I don't have it. Well. I shouldn't I'll I'll I'll get it ready for tomorrow if I can if I still have it I don't, know where I put it but. Bitcoin. Gold. I. Mean. Really we see a pretty we, see a pretty. Flat. Chart, here one. Of the nice things about. Bitcoin. Gold is that it. Has a lot of I. Guess. Like everything it has a lot of potential but. When. Bitcoin gold, catches, a bit, of a bed it, catches a it, goes. Pretty, fast and I. Don't know if you've ever tried to send Bitcoin, gold before but it takes, for freaking ever because, again there's not a lot of it's. Not a very used Network but for, trading purposes it's, it's a fun one to trade. But. We've. Got a clear, established. Bottom, formed, in Bitcoin, really, don't need to do any more analysis. Other than other, than recognizing this I. Mean. We could. You. Know what. And, right we get the. Square. Of nine values. There. We go. Changed. My default settings. That's. Annoying. But. Pastas. Letting me know that. I'll. Updates. On popular. Viruses. And. Those are actually not the right. Levels. Be there what am I missing here, 45. 90 that's supposed to be 135. And. 242. 25. 273. And 5. What's. Missing in here, Oh 360. There we go okay sorry. About that all right okay taking a look here at, Bitcoin. Gold. Yeah. That's actually pretty, awesome to see that Bitcoin Gold's had. Its close yesterday. Found. Quite a bit of support at, 360. Degrees squared, 9 level. Sitting. There pretty nicely again, the square of 9 values are derived from. Gans. Mmm. Just, sawed up here Oh Gantz. Squared 9 tool this. Is used in forecasting. Prices. So, we are at. What. Did it say. 306. Degrees at 28. 28. Dollars. And. If, we see here, there's the number 28 that's the degree value 360. Or zero and. What's. Nice about this. Is you can get a long-term. Projection. Or. A near term value. Watch for all, right so prices travel. Clockwise. Around. The square and. Angles. Are generally. An area, and a source of resistance. In, in. A, lot of cryptocurrencies so the next major angle, we're looking at is the. Is the 45-degree angle. And. That is. The, 31 dollar value area. Or. Conversely. We. Could the. Software doesn't do this automatically, but we. Can find a date and if. We win, swig and said that when price and time are squared, that, that is when, you. You see massive. Moves, in the market so when, time and price are both at the same level, and, then. The price action is also, there you, see. Some, really, really really powerful moves, in the market, so. We're, coming up on August. And. So, if, we look at all just first so tomorrow. These. The, price levels that we should be looking at if time and price were squared for tomorrow is. Between. The 37th 35, to 37 dollar value area is that, going to get there yeah, probably not. We're. Also probably, not going to get to the low of 17, dollars. But. We can look. Ahead and, and and monitor, future. Price ranges, and, where. They would be squared in time. Bitcoin. Gold sitting at this 360. Degree value area. We. Can see that. It's. Easier, to see these zones, when you can use a 4-hour. Chart but. Fortunately. It's, only end of day data. Optima. Takes, that. It's. A it's a bullish zone I mean there's. One. Of the clear indications, that markets have found a bottom after a bear move is that there. Continues to be negative news and negative sentiment, but but the price action. Doesn't. Doesn't. Continue, to have very very, sharp sell offs I mean new, lows may be formed but they're not, far off of previous, lows and they get, stuck in a range and you, know bitcoins, chart and Bitcoin Golder are pretty. Textbook examples. Of. Evidence. Of an accumulation phase. And. So that's really just what we're observing is a. Flattening. Of prices. And a resting of prices and just everything's just hanging out and what, is really nice too is that compared. To the rest of the. Crypto, market. If. I'm looking at Bitcoin. Bitcoin. Gold's chart here and then. I look at it. Or. I look at. Risk. Well. Actually that was a good one too or. Let's. See. Steam. Has. Had movement. Of. Course I put all the out performers, on the, under performers hump the chart here but, if, we look at a lot of the other big movers we don't see, a lot of. Structural. Moves. And. What. I'm saying is is that that bitcoin, gold is certainly a laggard. Compared. To the, rest of the dollar pairs that we would look at so when. There. When, we do start to see that, that first expansion, phase and, we. See that, before. That public participation phase, those. Are these are the kind of charts, and the kind of charts that we want to see we want to see charts, like this is where we should be buying.
As. If a chart looks like this. Or. If it, not-not-not, like this we don't want to see that we don't want to see a chart like this. Walton. Coin making new lows this. Is actually a good zone, - well. Really. Between. Now and September, anything making a new low is something, that should probably be bought up so, these are good this. Is a good chart to look at for buying. -. Good. Chart to look at for buying, yes. No. Not really Bitcoin. Gold very much so. Steam. I. Really. Like steam a, lot. Of volume today. Lend. Coin a. Lot. Of a lot of things showing. Bottoming. Areas. And new new new lows and against the dollar and those, are the kind of charts that we want to see right now. And. Really, if you are if, you're somebody who holds a and tries to tray Kryptos and I mean, you got. If. You. Got upset I try, to think about this we got changed your mindset about. Trading. Bitcoin, or any, cryptocurrency, it's like okay let's say you started, buying it when it was $14,000. Last year and, now. It's well below that, you. Think. Think about your mindset your are you're upset why, because. Something you bought lost value. Well. You were probably gonna buy more of it at some point right. Probably. Why, wouldn't you buy it now, I mean this is kind of like I was gonna go buy that new pickup, oh but. Man I don't know if I want to it dropped 40% of its value it's it's, 40%, off why. Wouldn't you go buy it, it's. A good deal. That's. How I look at it when I see lower prices on something I know I want, to hold for a while and that, it's going to appreciate and make more I'm gonna make well. I'm. Gonna make more than a good return on my investment, like crypto currencies I, get. Excited for this every, year I get excited, for the, sell-off that happens, at beginning of a year and then, I get, excited for buying. It during the summer. They. Should be thrilled. This. This crypto, market last 10 years has has Britain has really not missed a beat as far as how it likes to pump. Up in value over. The. Years so yeah, it's. Something to be excited about but I mean you know there's it's not a easy market, to look at right now if you're if you're trading, and you're. Day trading and, you've got your trade, capital, all tied up into you. Know everything. So that that is that is frustrating I, share that frustration because, I've got a couple. I've. Got a finance, and a bit tricks and a bit for necks a little bit for next one's different but I've got, I usually use my finance, account, to to. Do. Some short-term trading in and, yeah, if I've got a good, amount, of my capital tied up, I can't, initiate any trades for the long trades yeah they kind of stare I've got cracking as well but. Yeah it's it's it's. A frustrating, market, to try. And trade no. Doubt but you. Know. On the bright side we. Are approaching, that new. Buy. Zone at the seventy five hundred dollar value area so.
That's. Something to keep. Our eye on and. Let's. See what else. Really. Not, a whole lot more now we're just waiting for a. Want. To see what happens at this value area here at. Seventy five sixty two. That's. The zone we really want to pay attention to. Litecoin. Mike, one's getting close to making new new. Yearly lows maybe. Yeah. Maybe. Structurally. That's not a very healthy looking chart here. Look. Look looks awful, bear, flag e on. Litecoins. Chart. Although. I think that threat is limited, because yeah. On, our, weekly. And. Our, weekly oscillators, we are, stupidly. Overdone, I would. I would be surprised. To see lower. Prices for the month of August in. Kryptos. I, don't. Think it's a I I think it's I think. It's a quote, unquote planned, delivery, plan price action to, get, a dump before. The end of the month. Because. The. Indicators. If. You're using indicators, like oscillators. They. Don't paint. New, information, until the candlestick, closes, so, on a weekly, chart you have to wait seven days for the oscillator to update on a monthly chart you have to wait 30 days for the oscillator to update so if we look at, if. We look at. Bitcoin. And. We. Can see that well we did have a nice drive up on the weekly. The. Monthly. Monthly. Hasn't, even coiled. Up yet we'll see that at. The, at the close of today. By. The way. This. Is a. Bullish. Pivot. Setup on a monthly chart. That's. Hot. You, get a you get you get a bullish pivot, if. The. So. It's it's a three candlestick, pattern, and, what. We want to see is the the. Middle candlestick, has, a lower, low and a, lower high than. The two candlesticks on either side of it so on both, sides of this of this, monthly candlestick. Of the month of June, July's. High is higher than June and Mays. High is higher than June and then, May, low is higher than June's, and so as July's low is higher than June. So this, is a very bullish. Pivot. Setup also. The volume, you'd. Like to see it average or higher but the volume on July is. Not. By much but it is higher that's one of the that's one of the confirming. Things. You need to have although. Volume. In cryptocurrencies is. Hard. To quantify. Well. It's not hard to quantify it's, hard. To validate. The. The. Volume situation. I don't, think it's as important, as. It. Is in other markets even though it is a fixed supply market. So. This is a you, know currently this is a very bullish, setup. In. Bitcoins. Monthly, chart and more. Than likely what, we're gonna see on the monthly is we. Will see the stochastic RSI. Slope. Up and then, the composite, index as well will, slope up and we, haven't had that happen, since. Well. If you want to count. March. Into April. But. Otherwise yeah. We are looking at a very, extended. Overdone. Condition, in the in the. Stochastic. RSI and, and, in the composite index actually, what is what, does this look like with Krakens, data because they've got longer, data. Same. Thing. Actually. Cracking has a nicer. Look. Of it so yeah. This is a this is a pretty bullish looking monthly, chart so, this. Is this, is great I mean this. Is the kind of setup that you want. To see before, the next major rise. Also. You know if we go back, and. You. Know again, crypto, currencies are still, very very very new so. A pivot, is when both. Sides, low is higher than the middle candle, and both, sides. Highs. Are higher yep yep so, the outside candles, have to have higher lows and higher highs than, the middle candlestick, that is exactly what we want to see and then for. Bearish, pivots, you want to see the inverse of that so if we looked at oh you could see it in really any chart but if we looked at like a 4-hour chart. A. Bearish. Pivot. Usually. When bearish pivots, appear, at the top you, want to see them at a at a swing, high of some sort, here's. One there's. Bearish pivot right here yeah that's not very good the volumes got to be more appropriate. Here. We go this, is a bearish pivot right here. And. On. A bearish pivot what you do is you would I mean same. With the bullish you would wait, for the close and then here. You were short the close and, if. You were doing a buy you would you would buy, the. Open. Right, here's a good example of, a bullish pivot right here. Whenever. You see those these, form, if you know that you're at some type of swing low or at. Some type of swing high or if you're both, of your oscillators, a fast and slow oscillator, are also in an. Extended. Oversold. Or overbought condition. And the, volume has been increasing, towards that I mean you you. Get four, types of confirmations. From four unrelated, indicators, you've, got a pretty good, pretty. Good. Well. More than are pretty good you got it you've got an excellent probability. Of that trade, making. You Bank. Candlesticks. I. Don't.
Know Why. Candlesticks. Ever became, the. Defect. Well I know why they did I just don't know how for. Learning, how to trade how candlesticks. Became, the de facto fad. The, factor of the default form. Of, chart. Analysis. Because. They're actually really a more. Advanced. Form, of technical analysis, and there there, I mean there's much easier, ways. To look in the market because I. Mean. There's really not much to look at in crypto so I'll just dive into some, some, technical. Analysis. Stuff. But if. You. Have a hard time reading all right I'll, answer this I'll, say this if you get anxious. Looking. At a candlestick, chart then, you should not be using candlesticks. Until. You don't get anxious looking, at candlesticks, because if. If. Every, little tick in movement, of that, close bar, is, moving. Around if. That's causing anxiety. Candlestick. Charts are probably the worst candlestick. Or the worst charts for you to use, and they're just you're, just causing yourself a lot of anxiety and torture something. Way more appropriate. Is going to be. Let's. See probably. Renko. Charts, is everybody familiar with Renko charts I don't want to. Go. Over stuff people already know but. Renko. Charts are probably, going to be a lot easier on you or. Even point figure. Renko. Charts, there, is no time factor involved, in the construction, of a brick. They. Only, complete. Upon, a pan, amount of price. Movement so. Right. Now this, is so this is bitcoins, chart, and it's. A wrinkle bricks, and. What. They mean is each brick. Equals. An amount of movement, so. $200. So every $200. A wrinkled brick forms and if you look over on the scale here we can see that so. This, is the. Price here, opened, at ten, thousand four hundred and it. Closes at ten thousand six hundred so. On the next brick opens at ten thousand six hundred closes, at ten thousand eight hundred ten. Thousand eight hundred to eleven thousand and so forth okay you get, that so every.
Time Price moves $200, it will paint a new, wrinkle. Brick on your chart and. To. The inverse is every two, hundred dollars down. You. Will paint a new record brick now. A. Lot. Of people will look at this and say okay well. Here. We have this wrinkled brick change you. Know just in this area we see okay went from green to red that means it moved down to hundred. Moved. Down to hundred dollars and then we formed a wrinkled brick that is not true, when. Renko bricks changed, color that is an indication, of something a big. Turn happened. Either on a short-term. Trend or a long-term trend because, gotta. Think so this green wrinkled brick, that, means price had to move all the way up from. Ninety. Two hundred dollars all the way up to ninety four hundred dollars but. Price. Got up to ninety four hundred dollars. Lost. Two hundred and then lost another, two hundred to paint this new wrinkled brick so we actually had. $400. Worth of of. Loss. To. Paint this wrinkled, brick okay so. When you see, them. Change colors, that is something to pay attention to and be. Aware of. Ranko. Bricks again they're void, of time so. Actually. You want to you don't want to you want to set these on the shortest time for impossible for treat, treating view has a funky way of. It's. It's not bad it's just a, different. Way to. How. They paint these on here. But. If you use a minute, chart, you know you'll you'll. Get a more accurate wrinkle, representation, than the wicks you, can use, wicks or not but. The wicks basically. Say that it. Tells us how far price went. Before. It came down, so. This is telling us that price. Got up to nine, thousand, and then it actually went all the way up to nine. Thousand. Whatever. The high is nine thousand eighty five before, it sold off and went moved down again and. So. That's what we're that's, what. We're seeing right here and. Wicks. That show up. That. Are that show up in a different color than. The previous brick those are things to look. Out for because those generally, tell you that you, you have a high. Probability of price continuing, in that direction and so. You, know as, far as the brick size that's going to vary from market to market and from chart to chart so for Bitcoin you, know obviously the the smaller, the unit, of price movement the, more. Signals. Are gonna get but the the. Less accurate, those signals are going to be. Whereas. If you used like five hundred dollars you know you're going to get more accurate. Swings. But not as many signals, so. On. A five hundred dollar Renko. Chart, this. Is telling. Us that you. Know we're actually in a pretty good, bold move higher still. Okay. And, also, I mean it's it's. You. Can you, can use moving averages on, these if you want to I hate moving averages I think that they're the devil I think I think. Moving averages, are are. Things that brokers, pitch, to people to get, them to rely on them as a source of a trading signal and and, they're, not good, for that they are just meant to be used as a reference. But. If you can't tell just looking at a chart and scrolling out what the trend is you're. Gonna have a hard time with with. Trading. So. Yeah. Just but, you can use moving averages on, a, Renko. Chart. I. Like. The Coffman, moving, average is a. Good. One. But. I'm like a. 3331, period. So. I'm a Kaufman adaptive, moving average using. That with. Renko, I, think. It really takes a lot of headache out of your trading especially, if you're if you're going to be a long-term swing. Trader and Bitcoin. 500. 500. Pip, or 500, point, Renko, bricks in bitcoins, chart with, a 31-day. Comma. Kam, a Kauffman adaptive. Moving average. 31. Period of that I think, is a very. Stressful, way, to trade or, to swing trade at least. Because. You can, you. Can. Determine. Yourself. Really. How far you. Think price, can go away from this before it'll pull back to this line. And. You can get a clearer direction, they'll, move once. Once, there's, bricks start to close above these lines so, this. Is a very, very. Stress-free. Way to trade I think. You can use, Renko bricks in any market or. You, don't like Renko bricks you can use line breaks line. Breaks are our, funky. They're. Very simple. Basically. A line. Will not a new, a new line, won't form until it breaks the. Higher. The law of the last three, periods.
So. Kaufman, moving average there is really. Great line. Break charts as well. What, else again, these are these are all void of time to. Time is not involved it's just pure price action fair price action trader, candlesticks. Can. Go bite the dust or point figure Oh point. Figure charts are just a best. Love. Point figure. Hoggy. Hoggy. Charts. What. Heck. Is going on here Oh. Yeah, I think, we did a three on this and if I remember yeah that's right kaga. Charts, are. Shockingly. Japanese. Come came up with a. Good. Integration of Western and Eastern technical, analysis, Japanese, and. Technical. Analysis, is, just. Great. But kaga charts, you've. Probably seen, these called Gann swing charts before but. If. You want, to just ride trends, all day long and and, that's, all you want to do then kaga charts, are the. Chart. For you, because. When they've got hips and shoulders, we're sorry waists, and shoulders, and. The. Direction. Will, change as. It. Crosses the shoulders or the waist so here's this. Waist. Value, area here it's red once it crosses above it it closes above it rather on. The. This Kogi line you'll see it paint, green that's telling us that we have an uptrend good starting, and, Gann. Used three. Period. But I. Like. Ganz. Swing charts now use I believe it's a 2 2, period reversal. And. So. When I'm looking at. Looking. At this. Here. This. Is telling me that we're. Actually getting, a bullish buy signal, in Bitcoin, based. On this chart. Ok. Any. Questions, on any of these I'm kind of rambling, here. Any. Questions on any pairs, any questions, on I. Need. Stuff I just went over again. The kaga, chart is now telling us that that there is by a strong. Buy opportunity. In Bitcoin at this very level at this current price. Oh. The. Thing with the Renko which is nice is. If. We used these. 200. 250, actually. And. If I use my. What's. The time frame on the current chart there is no there, isn't so. On. The, lamont on all of these charts Takagi. Charts. And the Renko I always, have them set to 1 minute, but. But that's just because of the way that, trading. View. Does. Things, not. The wrinkled one the. Kaki. All the, ones that I showed you at the time does not matter it's just.
It's. How trading between of you software works so on, a one-minute. Chart. We. It. If it's, how it's how treating of you trading. These code like puts, things on the screen or paints them it's. It's still, time-dependent. In that factor, but as far as how. The actual, price, action is working. What. You should do is is, change, these settings. Go. To properties, and. You'll. Notice that if the, projected, bars are gonna be up it'll. It'll turn teal, if it's down I just like to turn them all green or. Red. Because. That that. Prevents. Me from saying oh I got to wait for it to close because, otherwise it won't actually quote. Paint, the the, kaki. Line or the Renko brick until, a minute has passed otherwise. That. That's the only reason why I put it at one minute it prevents. A lot, of repainting, and false signals. If you go back to that chart Jo it's just a trading view anomaly, with. With how their software works so. But. You're on the Renko with the kaki I use a one minute chart if, I go to back. To the Renko chart, and. If you remember yesterday we. Went over those. Musical. Harmonic. Levels. And. Yeah. Yeah no problem. I can. Remember. What. Those. Values, were. 8192. And. 16384. I. Think. That was correct right 16. - yeah it was. So. If this is the if these are these, harmonic, levels, that. That. Bitcoin. Likes to trade should probably get those lower ones - and. That's. 4096. -. Oops. And. Yeah. Here we go so the, Renko bricks will also, help, you. Identify. Whether. That, change, in direction of, a wrinkled brick is, actually. Indicating, a good pull. Indicating. Rid of the area or two to enter long or short so for. Instance you. Know down here at this level this, is a natural, harmonic, price level here if, I. Saw, price was down here and then the next brick. Turned green, I would, know that that was a very. Good entry to go long very low-risk trade, I probably. Would not want to take a short. Trade up, here. Even. Though. Or. Rather, well where was I looking. Looking. At two different screens I probably, would not want, to take the, short. Trade here, because we're just in the middle of this price action I'd want to wait to. Go, short or long, depending. On where. Prices. At relative, to these harmonic, levels so. Renko. Bricks are just they're, just less noisy, this, is a very clean. Way to look. At a chart and trade Oh. On. That note there's a crap ton of volume that was traded on this Renko brick holy cow, that's, like the that's. Like the third. Or fourth. Highest. Volume. Ever traded, on. This chart, with this Renko here, hmm. You. Can you, can use volume with these if you want but. That's. Totally up to you but man that's a shite, ton of volume. Again. Renko, Renko, charts, are great to, trade. With if, you don't like candlesticks, kaga, charts, line breaks there's. There's a myriad. Of different charts to look at you don't have to just use. Candlesticks. But, I tell, you what don't. Ever ever, ever. These. High, conoces do. Not ever use these to trade, do. Not ever put moving averages on them don't ever trade them with moving averages don't, ever take trades, based off of the clothes of these because. High. Conoces are. Don't. Ever back test high, conoces that has been the bane I don't, know what happened over the last three years but I've had some private students and aunts, and folks, who have done back tests with high kanashii and they, have they've, gotten stellar results, and I mean and look there's an old saying on Wall Street that there's no such thing as a bad back test because there isn't. There. You, should never use a back test I know. People say that the. Only the only test. Of a system is when you are doing it live okay. Do, not rely, on back tests, they, are they are going to do nothing. For you except cause you a lot of false hope and and. Anger, real. Anger and false hope Hika, gnocchi's these are just this is just a form, of. Analyzing. A trend. Okay. This. Is this is all this is for because a hike annachi candlestick, how it's calculated is that the, open, is always, the. Exact midpoint of. The. Previous, high. And low okay. So so. We're always, opening. At the midpoint of. A. Candlestick. Okay. High. Conoces are, just meant to look at for a trend I look at height I don't like moving averages, but. If if I can't get, a good clear view of a, trend going on on a lot or on a shorter timeframe I, will, look at a high Komachi chart because that is all hiked annachi is meant to be used for is to, analyze, the, current, price, actions, trend and it.
Can Warn, you when, it may change alright. But. High conoces, never. Ever, ever, use. This as an for, platform, of analysis, to. Initiate, trades, it. Is only meant to be used as a as. A trend. Identification. Tool, it. Has killed so many people's, accounts, so. Don't, do. Not have you, Hika gnocchi's, as as a, a source of a, trade system because you. Will have the best back, test results, with high kanashii charts, you you will believe, you'll be a millionaire that you found the. The. Golden. Or. The the, the. Holy grail of trading, do, not trust hike in a sheet arts, other. Than just to look at them and and determine, where trend is, okay. Anyways. Any, questions. All, right, again. Thanks for thanks for coming don't forget sure yeah go ahead and go. Ahead and ask. Lamont. Oh. You're. Welcome. Yep. This is still. This. Is still. Free. Service. We'll, be going into a paid one at, some point in the future so. Yeah. Don't forget to Like and subscribe and, you. Know make. Sure that. You're. Here, tomorrow. One o'clock cause I'll be here again at tomorrow and that for those of you watching. The recording or our Forks lens members, I will, see you tomorrow, morning. Hope. You all have that great trading day yesterday hope your trading week so far is going well have. A great rest of your day and I will see you tomorrow bye, bye.