Crypto the Bitcoin Algorithm Charting Model Newsletter including Specific Time Cycle Price Targets and Buy / Sell Triggers Monday May 21, 2018.
Charts for $BTC $BTCUSD $XBTUSD $XBT $BTC.X $ETH $LTC $XRP #Bitcoin #Crypto
Hello! My name is Crypto the Bitcoin Algo. Welcome to the member edition Bitcoin trade report for Compound Trading.
Like our other algorithmic chart models, I am in development and testing for coding phase to be used as an intelligent assistant for our traders (not HFT). My charting model is specifically suitable for the use and purpose of trading Bitcoin $BTCUSD, Bitcoin/USD perpetual swaps $XBTUSD and Bitcoin related equities.
Note: The $XBTUSD (Bitcoin swaps) model is built on a chart from BitMEX. Prices on other exchanges may vary slightly from what you see on the model, so remember to keep that in mind when trading the model.
Notices:
- Our 24 hour crypto trading desk was launched May 15. This team of three is also responsible for the development and coding of our algorithms and alerting to realtime Twitter alert feeds. Read more here; https://compoundtrading.com/whats-new-at-compound-trading-april-may-2018/
- More extensive chart models for $BTCUSD, $ETHUSD, $XRPUSD, $LTCUSD and others (such as a few bitcoin related equities) will be featured in future reporting.
- Join us in our private Crypto Trading room on discord!
- For newer users – read the blog post about how to trade Bitcoin here.
Primary Methods of Bitcoin Trade:
The primary method of trade we have found works with the most predictability is to wait for bitcoin to breach the upper right wall of a quadrant (the orange, blue or grey diagonal dotted lines – the thicker lines are more significant as they represent wider time-frames) and confirm over the next horizontal Fibonacci resistance. You can expect to get to reach the mid-line of the upper quadrant – over the mid-line you can expect it to reach the next quadrant wall. Entering this trade near the apex of a quadrant (time cycle peak range for a specific time-frame) gives you the widest trading range probability.
This method also works in reverse: Wait for Bitcoin to breach downward through the upper left wall of a quadrant, or fail when trying to breach upward through the upper left quadrant wall. Let it confirm under the next horizontal support and you can expect to see the mid-line of the quadrant – under the mid-line you can expect to see the next quadrant wall. Same as above, entering this trade near the apex of a quadrant gives you the highest probability of the widest trading range.
Channels: Another high probability trade is entering long as price rides up the bottom right wall of an orange quadrant. This is a safe trade to hold with a stop under the quad wall until the current time cycle expires. This trade works in reverse as well. You can enter short just under the upper right quadrant wall resistance, with a stop just over the quadrant wall, and hold until the current time cycle expires.
Horizontal Fibonacci Support/Resistance: The horizontal support/resistance lines are good indicators to use inside quadrants. The light green 0.5 Fibonacci line and the grey 1.0 or 0 Fibonacci levels (mid-lines) are the most significant. Clusters of these lines represent significant support/resistance as well. Intersections of horizontal and diagonal Fibonacci lines represent an upcoming decision and create a high probability of a significant move out of sideways trade.
Resistance Clusters: Along with the algorithm indicators on the chart there are traditional support/resistance lines that are very important. When these lines converge volatility tends to increase. Under the cluster is a high probability short. If it does get through the cluster it becomes a very high probability long scenario as the HFT algos cover their shorts and load up long.
Targets: Red circles on charting. These are placed at the most likely price targets in time cycles / trends relative to quads. These are still in very early stage of development/testing and should be used for observation only at this point. Two are typically provided for each quadrant time frame – the upper scenario targets should be considered if the trend is up and likewise for the lower. I do not recommend entering trades based on these targets. Also, at times the mid quad support / resistance line is highlighted with a target if trade is not extremely bullish or bearish.
Natural / Historical Support/Resistance: Natural / historical support and resistance is represented on the chart by purple horizontal lines.
Conventional Charting: Conventional charting should be weighed against the model(s) with all trade decisions.
In summary, our first generation Bitcoin algorithm chart model uses the following indicators (listed from most predictable to least in terms of win rate):
- Trading range created by long term algorithmic modeled quadrant support and resistance (blue dotted lines)
- Trading range between buy/sell trigger levels (grey/green arrows and solid lines)
- Directional channels formed by long term algorithmic modeled support and resistance
- Horizontal Fibonacci support and resistance (multi-colored horizontal lines)
- Conventional Natural support and resistance (purple horizontal lines)
- Long term conventional trend lines (red diagonal lines)
- Conventional MA’s
Bitcoin Algorithm (Daily Chart – Swing Trading):
Click link to open initial chart viewer screen, then share button at bottom right of screen, then make it mine, then double click on chart body to hide or reveal indicators at bottom of chart (MACD etc).
Algorithm Model on the Daily Bitcoin Chart:
Bitcoin Daily Chart is still in uptrend. Recent price action sideways however. 507 AM May 21 2018 $BTC $XBTUSD #Bitcoin
Price Targets on Daily Chart Model:
Trading 8515.00 intraday;
May 21 Bitcoin Price Targets:
Bearish 5824.00
Moderate 9808.00
Bullish 13821.00
July 4 Bitcoin Price Targets:
Bearish 9808.00
Moderate 13821.00
Bullish 17745.00
Observations / Chart Indicators: Trading Plan for Current Area of Bitcoin Trade:
May 21 – Trade is in sideways action recently but still in uptrend channel.
Per recent;
May 13 – The mid channel quad (horizontal fib) held price down and a retrace occurred.
The Bitcoin daily chart is still in the uptrend channel. Trading under the mid channel line (green dotted), so it is likely to near the bottom of the uptrending channel (yellow line arrow). But not likely to hit it perfectly as it is in an uptrend. It is likely to continue up prior to trade hitting the bottom of the channel. The opposite is true in down trends.
When price dumped it cradled in the 50 MA and bounced. Before a return to the bottom of the channel (per above paragraph) it is probable that trade will stay bullish in to that target in the 9808.00 region on May 21, this is a decent return considering intra-day trade at 8645.00 today. However, if price is lost to the downside of the 50 MA then a target hit is unlikely.
Those are your probabilities and my personal trading plan specific to the day model.
Daytrading Bitcoin – 30 Minute Charting
May 21 Price Targets:
Most bullish 9867.60
Moderate Bullish 8869.30
Bearish 7879.30
Most Bearish 6046.00
May 21 Daytrading 30 Min Chart that our machine trading team is using intra. $BTC $XBTUSD #bitcoin #crypto #trading
Per recent;
Bitcoin trade needs the 200 MA that’s overhead and 8873.00 mid quad to get higher short term. 130PM May 13 2018 $BTC $XBTUSD #Bitcoin
Per recent;
May 10 – Bitcoin daytrading model on 30 minute chart. Near 200 MA breach intraday. $BTC $XBTUSD #Bitcoin
Per recent;
April 29 – Most bullish price target 9867.00 April 28 scenario didn’t quite hit… next time cycle Bitcoin daytrading model $BTC $XBTUSD #Bitcoin
Recent Bitcoin Real-Time Trade Alerts / Charting Set-up Alerts
If you are reviewing this newsletter (as a historical unlocked post) and not a member of our service and would like a tour of our private discord server (trading chat / alerts etc) or our private Twitter member $BTC alert feed let us know. You can check out our call rate for yourself. Transparent trading is important to us.
May 21 – I will update recent alerts soon.
Intra bottom call. White arrow – alert sent. Green arrow – buy trigger. Red arrow – resistance (mid quad) on chart per alert sent. $BTC $XTUSD #Bitcoin #Cryptotrading
Intra bottom call. White arrow – alert sent. Green arrow – buy trigger. Red arrow – resistance (mid quad) on chart per alert sent. $BTC $XTUSD #Bitcoin #Cryptotrading pic.twitter.com/RM68yktgur
— Melonopoly (@curtmelonopoly) May 20, 2018
May 13 – Will post recent alerts soon when time allows.
Per recent;
April 29 – There have been many calls since bottom on our private server and private twitter feed… I’m not going to take the time to post them here right now but I will post this rant of tweets… the private member alerts I’ll post next report if time (they were all spot on alerts).
I even told ya how I knew where the bottom was. $BTC #Bitcoin #algorithm
Next should be insane trading in crypto space. Could be wrong… but I’m feelin it. #crypto $BTC $XBT $ETH $LTC #trading screenshot
Next should be insane trading in crypto space. Could be wrong… but I’m feelin it. #crypto $BTC $XBT $ETH $LTC #trading
$BTC near HOD and some bullish action on intra. Tweet screen shot.
$BTC near HOD and some bullish action on intra. $BTC #bitcoin #calls
Technical precision trading. Price target hit perfect on daytrading algorithm model charting. $BTC $XBT #Bitcoin #Crypto #Trading
Technical precision trading. Price target hit perfect on daytrading algorithm model charting. $BTC $XBT #Bitcoin #Crypto #Trading pic.twitter.com/l1pafs56QD
— Crypto the BTC Algo (@CryptotheAlgo) April 18, 2018
Bitcoin coming in to a possible buy trigger zone on daytrading chart. $BTC #Bitcoin
https://twitter.com/BTCAlerts_CT/status/978317583987429376
$BTC Bitcoin popped now 400 points since alert of support. Not a bad RR here for long test. If nothing else a day trade.
https://twitter.com/BTCAlerts_CT/status/978397655796801538
Bitcoin time price cycle peak coming April 7 – path of least resistance down target but my bias is to up. Trade price. We start trading live again Monday so I’ll broadcast our trading group moves live for this setup. $BTC #Bitcoin #trading #crypto (alerted in private member Discord server)
And the result…. price is dumping in to lower target identified on trade alert…. intrad-day getting close. Charting wins. Trader bias not so good on this one.
Ethereum Basic Algorithm Charting Model on Daily Time Frame:
Ethereum Daily Chart – Uptrend channel in play. Buy sell triggers at white arrows. Has 200 MA. Quad test on deck. $ETH $ETHUSD
Per recent;
Ethereum Daily Chart – Bounced before mid quad – bulls are in – channel in play. Main buy sell triggers noted with white arrows. $ETH $ETHUSD
Ethereum continues to be one of the most structured daily charts on any market. Love it. Very predictable trade. #algorithm #models $ETHUSD #crypto $STUDY
Ethereum continues to be one of the most structured daily charts on any market. Love it. Very predictable trade. #algorithm #models $ETHUSD #crypto $STUDY
— Melonopoly (@curtmelonopoly) May 13, 2018
Per recent;
May 10 – Ethereum Daily Chart – One of my favs on any market. Channel working. Main buy sell triggers noted with white arrows. $ETH $ETHUSD
Litecoin Basic Algorithm Charting Model
Primary buy sell triggers on Litecoin daily chart:
475.00
381.00
287.00
192.00
98.00
May 21 – No significant change in charting, use previous link below. It has lost the lower channel support, is significantly under 200 MA and bearish unless it regains at minimum lower channel support.
Litecoin still holding near bottom range of channel but it doesn’t look great – to be determined. May 13 147 PM $LTC $LTCUSD
May 10 – Litecoin still running bottom of algorithmic channel charted long in advance of trade in that area. $LTC
Ripple Basic Algorithm Charting Model $XRP
May 21 – No noteworthy change in charting – use link below.
May 13 – Ripple needs .932 for a chance for a bullish structured run. $XRP $XRPUSD.
I put some tighter time from Fib structure in the model for those that asked for daytrading signals.
Per recent;
May 10 – Nothing to report. Flat.
April 29 – $XRP flat but over 200 MA on daily.
BUT still great returns from 40s to near 90s WOW.
https://www.tradingview.com/chart/XRPUSD/0aDABOJz-XRP-flat-but-over-200-MA-on-daily/
Per recent;
April 22 – $XRP over .888 targets 1.31 then 1.65 mid term. Daytrading model on -deck. #ripple
< End of report >
Any questions give us a shout anytime!
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Post topics; Crypto, chart, $BTC, $BTCUSD, $XBTUSD, $BTC.X, $ETH, $LTC, $XRP, Bitcoin, trade, price targets, time cycles, algorithm