✴️ Polygon | The Good News About Low Volume

2023年11月8日

Polygon (MATICUSDT) can be seen ultra-bullish but, Where is all this bullishness coming from?

This week we are at the 4th session green, with each week hitting new highs.
Each week is full green with EMA21 and EMA10 having been conquered as resistance, the bulls clearly have the upper hand.

The RSI, blah, blah, blah...
Let's get to the interesting part!

Hold on, the volume signal first.

Trading volume is relatively low and we don't have a high volume week that reveals what is coming next.

In this type of scenario the low volume indicates that there is no selling pressure.
It indicates that the real action is yet to happen.

Since we have really strong bullish signals with the candles, higher lows, moving averages and RSI, the volume becomes secondary and actually reveal that there is still so much potential for additional growth.

Where does all the bullishness come from?

We use these charts to predict the future.
Obviously, the charts do not predict the future nor reveal anything about it, the chart is the past but we can use this information to reach certain conclusions.

Bullish actually means bad, in some cases, in some ways.
Bullish can actually mean low prices, crash, bad news, etc.

This is important because it is really basic and I see many people are still confused.
It would be a great upgrade for your charting, your sharing.

When we use the word "bullish", we are referring to future potential growth mainly.

So, bullish at the bottom, bearish at the top.

The indicators can be read in many ways... Here is one that is easy and everybody can agree and understand.

An RSI reading say of 18 is considered weak but instead we call it "oversold" and we use this "oversold" signal to understand "buy" or potential for higher soon based on this reading.

On the contrary, when the RSI is really high, say 80, it is considered super strong.
But this is tricky, it can work great if we take the broader market into context but at one point a "strong", "bullish" RSI reading can be considered overbought, signaling a bearish potential.

All the bullishness comes from the fact that MATICUSDT was trading near support, produced a reversal pattern and started to go up... While the technical signals can be read as bearish, we use the charts to better understand these signals and know that while technically bearish, the potential is up.

So we say bullish when prices are down and bearish when everything is up (based on the correct interpretation of the chart signals of course).

Thank you for reading.
I hope you are being entertained.
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You are appreciated.
Be blessed!

Namaste.

2023年12月10日

註釋

MATICUSDT continues bullish long-term.
Currently the pair trades above EMA10/21 with good volume.
Plenty of room left available for additional growth.