1.Analysis of bitcoin futures volumes from the Chicago Futures Exchange (CME)
2. Analysis of the long-term trend
3. Analysis of the medium-term trend
4. Analysis of the short-term trend
5. Japanese Candle Analysis
6. Conclusions
7. Statistics
1.Analysis of bitcoin futures volumes from the Chicago Futures Exchange (CME)
The analysis uses data on horizontal volumes from the Chicago Futures Exchange on daily charts. The analysis is based on the Footprint Profile Theory, in which the movement of the maximum volume level for the day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the displacement of the maximum amount of levels up indicates an upward trend. Moving the maximum volume level down indicates a downward trend. The chaotic movement of the maximum volume levels indicates a flat in the market.
02/08/21 - Maximum Horizontal Volume Level (ROS-Point Of Control) - 44175
02/09/21 - Maximum horizontal Volume Level (ROS-Point Of Control) - 47415
The ROS moved up, the price is above the ROS level. The upward movement continues so you should buy.
2. Analysis of the long-term trend
A trend is a trader's friend. Many traders know this saying, but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way your trades will have more profit potential with less risk. According to the Classical Dow Theory, there are three main trends:
All these trends are needed to be analyzed before opening any transaction. In this analysis, we will do this.
The long-term trend in this analysis is the daily trend. Trades will be made on a daily time frame and will be held for several days. The daily trend is analyzed using the EMA (48), an exponential moving average with a period of 48. If the daily candle closes above the EMA (48), it means that we are facing an upward trend and should buy. If the daily candle closes below the EMA (48), it means that the trend is downward and should be sold.
The chart clearly shows an upward trend, the price is higher than the EMA (48), so in this situation, you should only consider purchases.
3. Analysis of the medium-term trend
In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). The EMA (48), an exponential moving average with a period of 48 will also be used for the analysis. If the H4 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H4 candle closes below the EMA (48), it means that the trend is downward and should be sold.
The price is confidently holding above the EMA (48). This means that the medium-term trend is upward and coincides with the long-term trend, so you should buy.
4. Short-term trend analysis
The short-term trend, which can show well the entry point to the market will be considered a trend on the H1 timeframe. The EMA (48), an exponential moving average with a period of 48 will help us. If the H1 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H1 candle closes below the EMA (48), it means that the trend is downward and should be sold.
The price is higher than the EMA (48). Short-term uptrend, long-term, medium-term and short-term trends coincide, you should buy.
5. Japanese Candle Analysis
The Classic Japanese Candlestick Analysis is used for the daily time frame. In this analysis, we will also analyze the daily candle.
Closing the daily candle up, the candle is white. The maximum is higher than the maximum of the previous candle. The shape of the candle is trending, the body is much larger than the shadows. It's probably an upward movement.
6. Conclusions
Volume analysis: the ROS has moved up, the reaction to the ROS is BUY.
Long-term trend: up - BUY.
Medium-term trend: up - BUY.
Short-term trend: up - BUY.
Japanese Candlestick Analysis - BUY.
General Conclusion: 02/10 / 21- it is preferable to buy.
7. Statistics
The statistics on completed transactions are kept to analyze the effectiveness of this approach. Monitoring your trading account:
The result for February 2021 is + 1.19%.
At the moment we are in a deal:
02/08/21 Bitcoin BUY: 39248; SL: 43843; Risk per transaction: 1% of the deposit. With a deposit of $ 10,000, the lot is 0.04.
The stop loss has been moved beyond the extreme of yesterday. For new trades, the stop loss is located behind the daily extreme. We do not set a take profit, as we will accompany the transaction by moving the stop loss beyond the extremes of the new days.
Since trading is conducted on daily charts, this recommendation is relevant throughout the day.
Trade on the trend, and you will have great profit!
