New indicator showing: fight between 1D and 4D traders on BTCUSD

5 ביולי 2020

Hi there, friends. Hope this post finds you well and healthy.

Today I'm happy to bring you an analysis based on a new script I've been working on for the past few months. It is called, so far, Power Trend / Consolidation, and is, currently, in a closed beta phase. But if you'd like to know more and participate, let me know. I can arrange you an invitation.

So, this is what we see here: 1H chart with its consolidation range (colored background), plus 1D and 4D overlays -- also presenting levels regarding their respective consolidation ranges (limit and internals). All plotted by indicator (3 instances).

1H on a clear bearish posture, since it broke its Bias Threshold Line on June, 24th (black circle). It happens that event was also characterised by price reentering 1D consolidation range - for the second time since last top rejection, which suggested a stronger move to the downside. Actually, the power of current down move is coming, imho, from 1D traders (and lower) taking profit or going short. 1H structure in a downtrend, or pure downtrend, is a clear reflection of that.

However, in its way down, price is meeting 4D consolidation structures -- as well as some internal 1D ones. This, naturally, brings the attention of larger, 4D (or similar) chart traders, as well as fear to 1D and lower time frame traders. The effect is visible by most dips being bought around these levels, and 1H consolidation structure being pressured to the upside -- up to 2 key areas: 1H "(60) Bias Threshold" and "60 Upper" levels.

Price even managed to cross 1H Bias Threshold for a while, on July 1st, but upthrust was not enough to break a combined 60 + 1D Upper consolidation limit. Thus, price lost 60 Bias TH again and resumed the downtrend.

In our telegram chat group, we reviewed this and subsequent scenarios, betting on more downside, with positive results so far.

At the moment, price is hanging by a thread under 4D consolidation limit -- actually meeting an intermediary time frame / proportion Bias Threshold (5H), not on chart.Thus, there's a chance we either pull back from here, to challenge again 1H and 1D structures (with potential target at 9400, if successful), or go down to try 8900 again. If that fails, I see potential supports at 8700 and around 8500/400. BTW, if these are lost, BTCUSD may get into big trouble near term.

Thanks for the attention, and again, if you'd like to help beta testing this indicator, please let me know.

Cheers and safe trades!

PhinkTrade