Attention Class! Volatility Squeeze in TRON! (TRX/BTC) =D
Hi friends! Welcome to this update analysis on TRON! I'm sure many of you will automatically notice that my chart looks a little different. Unfortunately, I accidentally erased all of my charts, so I had to redo them. However, the new chart retains all of the technicals from it's predecessor.
Looking at the four hour chart, we can see that TRX/BTC has crept above the topside of the downtrend channel, as it continues to drift sideways in a state of paralysis. If you recall from the previous posts, we were discussing how TRX/BTC was caught between the 50 EMA (in orange,) and the 200 EMA (in purple.) As you can see, the 200 EMA has been lost, after TRX/BTC produced numerous failed attempts to trade above the 50 EMA. Yes, a breakout above the downtrend channel has occurred, but there is no follow through. Nothing is happening. It just continues to trade like nobody is touching it. In fact, nobody IS touching it. We can see that the volume is dismal, indicating that there is a remarkably low amount of trades being made in TRX/BTC. The MACD is also unrecognizable, as it trends perfectly sideways, exhibiting virtually zero momentum.
You may have noticed the Bollinger bands on the chart, which I don't normally use, but I knew that they would apply for this particular analysis. What appears to be developing, here in TRX/BTC, is something known as a "volatility squeeze."
For those of you who don't know what a volatility squeeze is, it is "when volatility falls to low levels and the Bollinger Bands narrow. According to John Bollinger, periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signal is the start of a new move. A new advance starts with a squeeze and subsequent break above the upper band. A new decline starts with a squeeze and subsequent break below the lower band."
Looking at the chart, we obviously have a massive contraction in volatility, and a squeeze of the Bollinger bands. Squeezes can persist for extended periods of time, but just as John Bollinger said, you need to watch for the initial break of the top or bottom of the bands, to know which direction the high volatility move is going to go. If I were a betting man, and I am a betting man, I would bet that we will see a huge drop to the downside. However, I wouldn't trade that, until I saw confirmation of the break of the lower band. The same would be true for the upside. In short, keep an eye on the squeeze on the bands. Extreme volatility, may be just around the corner.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Looking at the four hour chart, we can see that TRX/BTC has crept above the topside of the downtrend channel, as it continues to drift sideways in a state of paralysis. If you recall from the previous posts, we were discussing how TRX/BTC was caught between the 50 EMA (in orange,) and the 200 EMA (in purple.) As you can see, the 200 EMA has been lost, after TRX/BTC produced numerous failed attempts to trade above the 50 EMA. Yes, a breakout above the downtrend channel has occurred, but there is no follow through. Nothing is happening. It just continues to trade like nobody is touching it. In fact, nobody IS touching it. We can see that the volume is dismal, indicating that there is a remarkably low amount of trades being made in TRX/BTC. The MACD is also unrecognizable, as it trends perfectly sideways, exhibiting virtually zero momentum.
You may have noticed the Bollinger bands on the chart, which I don't normally use, but I knew that they would apply for this particular analysis. What appears to be developing, here in TRX/BTC, is something known as a "volatility squeeze."
For those of you who don't know what a volatility squeeze is, it is "when volatility falls to low levels and the Bollinger Bands narrow. According to John Bollinger, periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signal is the start of a new move. A new advance starts with a squeeze and subsequent break above the upper band. A new decline starts with a squeeze and subsequent break below the lower band."
Looking at the chart, we obviously have a massive contraction in volatility, and a squeeze of the Bollinger bands. Squeezes can persist for extended periods of time, but just as John Bollinger said, you need to watch for the initial break of the top or bottom of the bands, to know which direction the high volatility move is going to go. If I were a betting man, and I am a betting man, I would bet that we will see a huge drop to the downside. However, I wouldn't trade that, until I saw confirmation of the break of the lower band. The same would be true for the upside. In short, keep an eye on the squeeze on the bands. Extreme volatility, may be just around the corner.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
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這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。