12hr head & shoulders completed on heavy volume. Trend reversal confirmed. Time to go long. Major resistance at $440-$450.
Major resistence is at $420. Don't look to the past. Look at the here and now( order book)!
1. order book can change instantly, not a reliable indicator
2. the past indicates support/resistance levels and their respective volumes, or how many players traded and will remember that particular price. support becomes resistance and vice-versa.
sure it can change. But now there is a wall at $420 with 4000 coins. This could deter people to buy at $415 because the price will likely no rise for the next time. I don't like TA. In my opinion price is the result of supply and demand. But if many traders believe in TA this will get a self-fullfilling prophecy. But I would say: If people try to predict the future with chart analysis, they are right at 50 50.
I bought new coins after we broke that 26k wall. This has more impact than charts!
PS: There is no resistance or support level at $420 in the past. Neither is it a round number (like $400). Why is there such a resistence now?
The wall could get moved up or down, or be taken away entirely. Some walls are skiddish, some are permanent. There's no way to know. Sometimes they are useful. During strong trends they are not as they get easily moved/pulled.
TA is simply a way to predict when the trend might reverse. And that's what you should be doing when trading... following the trend.
Volume tells me how much money and how many coins were accumulated and distributed when the 26k wall was eaten. You are part of it, so was I
That is TA.
Support/resistance levels don't occur every time the market pauses. We could be consolidating for the next move up. 420 may well be a resistance level. But 450 will be a more significant one.
Markets are fractal in nature. The farther out you zoom, the more significant patterns and predictions become. So heavy volume support points on the daily chart will become more significant resistance than lesser volume support on, say, a 1 hour chart.
