Topic: Key Bitcoin Price Levels for Week 52 (22 – 28 Dec) – My Trading Plan (Read 921 times)

what program are you running for that chart?

In the above daily chart of the Mt. Gox Bitcoin price in USD, we’ve also got relative volume bars semi-visible in the background. Also shown are Fibonacci levels, a trendline and the MACD indicator. In the first section, I’ll cover these details and why I consider them important. In the next section, I’ll formulate a trading plan.
1) The Chart of the Past
The colour-coded areas correspond to the Fibonacci retracement levels. The levels are traced from the “Silk Road seizure” low of $109.50 in early October, up to the $1250 highs in late November and early December. A quick refresher on Fib levels:
the red zone at the top represents a Bitcoin price range between the high and 23.6% lower,
the next level down in yellow is the continuation of the range down to a 38.2% drop (or “retracement,” in trading terms) from the uptrend highs,
the green covers a continuation down to 50% (not a true Fibonacci sequence value, but frequently included for its utility),
the weird greenish-blue colour covers a continuation down to 61.8%,
the blue covers a continuation down to 76.4%. and finally,
the grey area shows the Bitcoin price range back down to the 100% which would represent a full retracement.
Unless the Bitcoin price falls into the deadly mists of the grey zone, it remains valid to consider price as being in a long-term uptrend. Within this long-term uptrend, we’re currently experiencing a medium-term downtrend / retracement, as represented on the chart by the yellow line. I would consider a break to the upside of this trendline on strong volume to be a partial buy signal.
Next we come to the MACD (Moving Average Convergence / Divergence) indicator shown in the lower block. As the name suggests, this indicator plots two moving averages against each other. The values used in my chart – and the default values on BitcoinWisdom, where the indicator is also available – are for a 9 day exponential moving average (9D EMA) signal line and a 26D EMA minus a 12D EMA line. The pink histogram displays the difference between these indicators – shortening bars indicate convergence and lengthening bars divergence.

Read the full analysis here: http://www.cryptocoinsnews.com/2013/12/21/key-bitcoin-price-levels-week-52-22-28-dec/