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52 Week Price Analysis for Bitcoin


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Having run the numbers with my trading algorithm I have developed with the IG Index API, I thought that I might offer some insight. As always this is my own thoughts, ideas and opinions. It might help some of the newer investors. 

Let me explain this graph. Whilst I believe I hold some authority around various parts of the internet with regards to this as I have invested alot of time and effort into this system most of the code is released for free, let me attempt to explain. This graph is produced from my own code/trading algo which I am happy to discuss if you so wish. I can do analysis on other stocks, pairs whatever if there is demand for it. 

  • The blue dashed line's are the high and low prices for each week, In this case over the last 52 weeks. The green dots are the "Peak Detection Algorithm", As you can see from the graph it is good at predicting when the price will turn around. Each dot representing a turn around in price. 
  • The grey area is the VWAP, The Volume Weighted Average Price. 
  • The red dashed line is what the price is currently sat at (mid price), As you can also see it is sitting right on a green dot, This is a signal to say that the price is about to turn around. BUT beware. There are ALOT more peaks beneath the VWAP price (Count them) which indicates there is some serious downward pressure there, It's failed to get off the ground. Not many buyers!.
  • I have various rules attached to how this would be traded   So my analysis for the next week is such that there will be a quite a down-tick in price (see the last green dot, It's just started), With significant price pressure downwards. Not to mention 4000 been a "Psychological Price barrier" 

My time is limited but if you wish I can produce graphs based on lower-time frames, Hour's etc to show the turn around points to plan your trades accordingly. 

 

 

Figure_1.png

Edited by TheGuru12
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Thanks for this @TheGuru12, very interesting and clearly a lot of work has gone into it so thanks for the share. I suspect many here would be very interested in something as you suggest on a lower time frame (hourly for example) that they could follow especially as bitcoin is very problematic to read short term.

Did just note before checking the forum that bitcoin popped to the upside just in this last hour but who knows how long that will last with social media organised pump and dumps .

 

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32 minutes ago, Caseynotes said:

Thanks for this @TheGuru12, very interesting and clearly a lot of work has gone into it so thanks for the share. I suspect many here would be very interested in something as you suggest on a lower time frame (hourly for example) that they could follow especially as bitcoin is very problematic to read short term.

Did just note before checking the forum that bitcoin popped to the upside just in this last hour but who knows how long that will last with social media organised pump and dumps .

 

4H over 15M ... It's trading very tightly, Albeit it downward trend. 

Figure_2.png

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Not sure why you are trying to sabotage this thread @TrendFollower, it is titled 'bitcoin' because it is about bitcoin, what is offered is a sharing of experimental algorithmic analysis of bitcoin price action and many will be interested to see how it goes.

Why on earth you are waving red flags about is a complete mystery, no one is trying to sell you anything.  

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1 hour ago, Caseynotes said:

Not sure why you are trying to sabotage this thread @TrendFollower, it is titled 'bitcoin' because it is about bitcoin, what is offered is a sharing of experimental algorithmic analysis of bitcoin price action and many will be interested to see how it goes.

Why on earth you are waving red flags about is a complete mystery, no one is trying to sell you anything.  

Agree.

however @TheGuru12 - it would be really interesting to see some calls going forwards in real time. Unsure if you have alerts set up (or have the time to post here continually) but would be interesting to see your system call a top / bottom in real time and follow the bitcoin trade. 'Peak detection Algo' sounds cool as well!

thank y ou for sharing

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Oh I see, I thought it was just being rubbished for the sake of it. It might be worth reading the OP again because the green dots are the calls. The green dots on the upper line are sell calls while the green dots on the lower line are buy calls. It was somewhat unfortunate that after days of sideways movement in the very hour of posting and the graph showing a short call on the weekly time frame bitcoin price suddenly pumped up, which was why I suggested adding the shorter time frame. The shorter time frame graph posted last night was rushed and not so clear but it actually looks quite good when compared to today's chart. Very interesting. 

image.thumb.png.1fb532c98592e81d428be2e003d7d23e.png

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