Hello again traders Ward Rea with - crypto calm in this video
We're gonna be taking a quick look at litecoin in Bitcoin we had couple breakouts
So we're gonna check them out if you enjoyed this video. Please hit like and subscribe below
Without further ado we're doing a lighting analysis
Because I hope you're all having a wonderful Valentine's Day
It really is that the day of love and that is not?
Discriminated against on the crypto market because bitcoin and litecoin have had wonderful breakouts
And I just want to kind of go over that with you. I know it's saturated
I know everyone's talking about it all the time on these videos, but something I wanted to bring to the table
That's a little different than maybe you know these other people talking online about these coins
So I was looking at this on a regular scale an arithmetic scale that's what everyone's using
It's what y'all are all using your short term timeframes the default
But I you know
One of my good friends Laura Lee kind of turned me on to logarithmic scale I didn't know much about it
But I want to started using it on longer term time scales it really
It baffled me because it gives us so much more perspective just like through not your Trey Smith's right
When we draw triangles when we look at channels and pivot points we gain more perspective and that's all we can do as traders is
Just try to see more
You know what the RSI tells us stuff the MACD divergence
If it's bullish or bearish all these things give us a better glimpse and so
You know when I was looking into a logarithmic scale I?
Learned that pretty much the best time to use logarithmic scale is when you have a significant price change
So you tell me if I'm looking at this chart right here
You know it's a 4-hour time scale not a big deal
But this goes all the way back to October over here to current date
So that's a decent amount of time, but the biggest thing is the significance and price change so what we're talking
19,000 almost 20,000 to
Under 6000 right that so if that's not a significant price change, then I guess I'm crazy and should be doing this so
Wouldn't it make sense if that's the most
relevant time to use logarithmic scale I
Did that and what I found was just baffling it gave me just
Almost a different chart in itself it cuts out a lot of new ways so logarithmic scale covers your percentage changes
Not so much your price change, so look what happened. I actually had to redraw a channel everything
It was pretty nuts or just had to recalibrate it so we look at logarithmic scale Bitcoin USD on the 4-hour
We have pivot point here to the point here
And then we hit this
Resistance the same wall the same trend line and we broke above it and when we did it was for real it
And I'll guess we could look in on other time skills go down and see if we got a very cook and go
I'm not sure if we really did
Wow
We did look at that brake
Hook we tested that trend line on this one our candle
And we tested a support and we confirmed above and we had our bullish engulfing
And if you were in this as a trade this would have been your buy signal. You'd have bought right here
It's it's pretty pretty amazing
The way it works
So you're always going to be want to be checking your timescales to see if this brake cooking goes happen
It was on the one-hour, so it was pretty nice
You know 30 minutes not gonna be a significant as the one hour, so this was an awesome confirmed breakout
We had a little bit of a head fake right here. No problem
We stayed above the 50-day moving average, and we jumped back above the 20 and a 50
Because we fell a little bit below, but now we're off to the races, so let's go back to the for our real quick
Zoom out some white cheese
So something else I saw was
Look at the volume significance now. It's nothing like these levels over here. This was this was insane
This was everyone getting in the market, but if you look right here
Comparative to what we've seen in this whole downtrend. We've about doubled any other candle
Candlestick right this is it this is double any other candle from this whole downtrend. We've had so that's in my opinion pretty freakin significant
So yeah, we have a confirmed breakout on the logarithmic scale Bitcoin. I just wanted you all to see that
It just I want y'all to learn with me on certain things that I'm I'm constantly trying to better myself
Just like you should too. If someone tells you they know everything they don't know anything so
You know really with Bitcoin. I just wanted to bring that to your attention so what we're gonna do
Is just move on to litecoin I wanted to keep these short and sweet
I know y'all have y'all's uh dates tonight with with your lady folk and stuff
So I did the same thing with litecoin and my justification for that
You know and I'll let y'all answer for me if we have a price
that gets up to four hundred and twenty dollars and
Then we retrace in a downtrend
Ooh
$100 we lose 3/4 of our value you tell me is is that a significant price change I?
Assume you said yes, she said no you were wrong so yes, we had a very significant price change
So it would make sense to possibly use the logarithmic scale at least to take a look at the chart
And how everything lines up and so I had to recalibrate my channel again
Just like I did with Bitcoin and so we have one two three
three places three plots right there almost at four I
Used this down here my third plot right here. Just because
One two three, and you know this is an exaggeration wick within the heart line one time two times three times four times
and five times home kind of six times that we had respect so this is a pretty nice downward sloping channel and
Really, what happened was?
we
Right down here. We double bottoms. I know we talked about this this was like my first video
I ever posted you know on typed encrypt
It was a like one analysis, so we talked about the double bottom, but what we did was we jumped back above the 20-day
I'm sorry the 20 moving average the 50 moving average and
Then we had some we had a bull flag
And then we just kind of we broke out of that chopped around stayed above the 20 which is very significant
That's very bullish
But we were still below that 200 ma
The 200 inmates the big one if you're below that you're not in good shape
But something that litecoin did was it blew right past it
Something that isn't very good is
Where we're overbought where we've been and overbought territory for four hours now
Goodness like 16 plus hours. We've been overbought on the on the four hours. So that's that's pretty significant
another thing I saw was we had bullish divergence the negative momentum was drying up and
Heywood. That's that's what we're looking for these are indicators that tell us you know Bitcoin on the one day we had a triple MACD
divergence bullish MACD divergence and
People were coming in the channel that we've been looking at it for over a week
And we've been optimistic because of the indicators
and we had people coming in to our channel talking about bitcoins going down to
4,000 and all these different things and it's like tell me your technical reasons why and most of the answers were it's some guy
I'm following if this is why that was this reason why so I?
Couldn't agree because of the technical indicators, and it's not emotional. There's no that. It's not really like an argument because
That's how we make our determinations by indicators using different variables and putting them together and in making a cake right you got the eggs
You got the batter you got the bowl itself. You got the milk so you've got the RSI. You got the MACD divergence
you've got the higher highs you've got all the different ingredients to tell us that we have optimism and
In a coin when it's double bottoms
When huge amounts of volume on that coin, I know came in when Bitcoin hit the bottom
but we don't know if it's at the bottom quite yet, but there was no reason to not be optimistic so
What we did I didn't really mess with the feds on this they've been the same. I was using them as supports
I went bottom the top just because we were in a downward sloping channel
so when I didn't move on look what it did look how perfect that is the
Six one eight right here look how it weeked touched it, and then fell back. I the smile of fibs
They tell us so much you don't mess with them. They can they can reveal a lot, so
Like one, I definitely think
Needs to cool down on the RSI on the four-hour. It's way too hot right now
Let's see if we got a break up and go with this
Will break hooking go there. Let's check the 30 minute
Yeah, we never really got a clear break hooking go disregard this herro guys. It's for a longer time scale so I
Don't really I like Bitcoin a lot more. Just because of the break
I can go how textbook it was, but there's no textbook break hook and go right here
You just mean this couldn't be this is not considered it because you didn't engulf any red candle or green candle
This is this broke it hooked, but then it felt below the trend line so what it's kind of yeah
So we want to see a lot more confirmation, but hey, I think like when it's it broke out this channels been in development
since
December 12th so very very very significant that we broke above these levels
That's very telling
Maybe what will happen is since we got so overbought on the four hours since we are over bottom before hour
we will retrace for a possible delayed hook well test it and
Then we will break to higher highs
But right now if you're a bull you gotta be happy because bitcoin and litecoin are both
In breakout mood right now so Tom will tell. We'll see I
Hope you'll like this analysis of a coin and like coin
I hope you all are having a wonderful Valentine's Day if you again if you enjoyed this video
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until next time stay height
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