Weekend update for ETHXBT, XRPXBT, Litecoin and Bitcoin | Hacked: Hacking Finance
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Weekend update for ETHXBT, XRPXBT, Litecoin and Bitcoin

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Weekend update for ETHXBT, XRPXBT, Litecoin and Bitcoin

Introduction

This article was posted on Saturday, 13:37, UTC.

The week passed by in a surprisingly different manner than I had been expecting. One week ago I thought that it was going to be an exciting week of fireworks in many of the coin markets. But overall, it was a week of sideways movements for the most part, with an awakening just in the past 2 days or so.

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I was therefore enticed to look a bit further into a few of the charts, to see what I may have overlooked. As you may have already guessed there are so many forces acting on the different charts that “Chaos Theory” becomes real. The butterfly effect, the wings of a butterfly causing small perturbations that cause a hurricane half a world away, is an everyday occurrence in the charts.

Chaos Theory posits that the smallest influences on a dynamic system causes huge ripples later, so much so that something as studied as the weather with billions of dollars of equipment and thousands of people studying, have a hard time getting the weather right beyond a few days out, because a sudden warm Santa Ana wind can change the charts in a moment.

ETHXBT

Let’s look at the ETHXBT chart as an example. I have removed many of the lines, Gann Fans in particular to make this screenshot easier to understand. If you look, you will note that there are not one, but two different setups on the same chart. Price encountered a 2nd arc pair (green) which brought the price down over a few weeks. It rose again until it hit a 1st arc pair (red) of a shorter-term setup.

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I will demonstrate this phenomenon on another chart or two today. For now, it is enough to recognize the short to medium term implications on price. As traders that’s what we care about the most. But ultimately, one day, my fervent hope is to understand exactly how it is possible, that the independent decisions of tens of thousands of traders, buying and selling for undisclosed reasons, can create such beautifully choreographed fractal images that would have made Mandelbrot blush.

Since this screenshot was captured, price has closed above the red arc. This is short term bullish, with the promise of a good run when/if price gets above the 2nd arc of the pair.

 

XRPXBT

This charts has traded almost flat, on the 50% retracement line, fluctuating from .382 to .618, of the high and low after the fall at the beginning of the month. Any close above or below that channel will give an indication of direction – but my guess is up. But when?

Here we see that price is soon to hit the 2nd arc of the pair. My advice is to watch this carefully. It is likely to find a good reason to rally when it passes through the arc.

Litecoin

Litecoin is another coin that I found multiple setups acting price simultaneously. I changed the colors of the longer term setup’s 3rd arc pair to yellow, so they could be easily differentiated from the 1st arc pair of a shorter setup.

Note that at the recent high, price hit both arcs at the same time at the moment they intersected (highlighted in yellow). This is too improbable to be a coincidence. It seems like a case of Chaos Theory’s “Strange Attractor” for those who have studied Chaos.

After the more recent rally, note how pricetime is responding to both arc pairs, even though they are from completely different setups on the same chart. I am fairly confident that price will get through the pair(s) and rally to the next resistance at ~ $15. But cautious traders will wait for the buy signal.

 

Bitcoin

On a longer term setup on the daily chart, Bitcoin is in a 4th arc pair. Anything can happen while within the pair, but I am not bullish here. Time will tell, but I have a feeling that price will head to $1000 before rallying again.

 

There are simply too many coins to cover these days to adequately cover them all in a single column. Watch Dash, Zcash, and Ethereum of course… Until next time….

Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Jim Fredrickson

Jim Fredrickson

Jim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. If you do well as a result of suggestions made here, feel free to say thank you :) BTC: 1FUq3GB1Q8zz2JpuBr7YHzVBKnaWoxgmya Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.

Comments
  • user

    AUTHOR And

    Posted on 3:38 pm April 15, 2017.

    Thanks Jim, your columns are really great! Please remember to give us some buy signal, like April 3rd, for Litecoin 🙂

  • user

    AUTHOR Jim Fredrickson

    Posted on 11:31 pm April 15, 2017.

    now, at 11.80, looks like a good entry point for ltcusd.

  • user

    AUTHOR And

    Posted on 8:11 am April 16, 2017.

    Thank you Jim!

  • user

    AUTHOR Ershad

    Posted on 7:34 pm April 18, 2017.

    Hi Jim,

    can you recommend a good stop loss and selling price for XRP. should it start to rally?

    Kind regards

    • user

      AUTHOR Jim Fredrickson

      Posted on 3:04 am April 19, 2017.

      I’m not sure of your timeframe, but there will be resistance at .048, and longer-term at .09…

  • View Comments (5) ...
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