Topic: The Technical Indicator that Matters! - page 3. (Read 3373 times)

Good job gents, I need not say more.

Never, ever invest in Dundee United.

Not being funny mate but you are playing the stereotype perfectly. Typical newbie trying to justify their bad decisions with a post telling us how it's all going down to hell because they are butt-hurt that just took a big hit on their holdings. I've been on this forum for a couple years now and I've seen thousands of these posts.

I appreciate you may actually have a clue what you are talking about outside of Bitcoin, but everything I have read from you tells me that you really should not be trying to apply that knowledge to bitcoin, especially not using words like stochastic and analyzing chart patterns. It's no better than reading tea-leaves in a cup.

It's so hard to say in this market, man.  I've been burned wayyyy too many times in this market, where I would have been fine if I just held.  I'm done day trading.

I am a Johnny come lately Bitcoin speculator, getting in on around the 20th November, as Bitcoin was taking out new ATHs on a daily basis.

I have made a decent bit of money, both on the way up, and also on the way down.

On the latest brutal correction however, I mistimed by buy-in tranches horribly ($550) and ended up selling at $490. Had i held another hour or so, I could have broke even, and who knows, maybe in another few hours I could have made a profit. But I didn't. I lost, just like hundreds of thousands of others have lost. I am pretty annoyed with this and now have little appetite for trying to play the crashes and bounces in Bitcoin, of which their are undoubtedly many more to come. I am pissed off, despite the fact that i am still overall around 5K GBP up from under 1 months worth of trading. This makes me think how all those must be feeling who have indeed lost big.

In summation. Sentiment right now must be dropping through the basement and into a bottomless pit. Whilst I am sure that Bitcoin will have a lot of bouncing about to be done and thus further trading opportunities will present themselves, the law of averages in a bear market will dictate that an increasing number of traders/investors will get burned, thus being increasingly more likely to exit from the market, thus driving down the purchasing power, etc etc.

This brings me to the following weekly chart. At the very bottom of the screen, there is the RSI (slow stochastic). If you look back at the boom n crash of April 2013, it can be clearly seen that the RSI hit the roof, scraping along the top of it for a period of time, before hitting the basement and dragging along the bottom for a period of time. At any given point whilst the Slow Stochastic Indicator was scraping along the bottom, would have presented an excellent investment opportunity. Moving along to the Nov/Dec 2013 boom n crash, we can see a very similar pattern forming. For those who lack imagination, I have paintbrushed in the likely path the RSI will take in the near future. Make up your own minds what investment signals this provides.