ALWAYS BET ON BLACK - Update 17MEDIUM-TERM DOWNTREND VS SHORT-TERM UPTRENDI will introduce a new tool and will show you how Fibonacci tools work as a group to provide information of future price movements and Risk-Reward ratios.First we use Fibonacci Retracement tool to see the status in this short term uptrend from 23.5K.We click on high of 29.5K and low of 23.5K and the retracement lines are drawn. Clearly we are just breaking the 0% (29.5K) line, so this is a confirmation that this uptrend could continue higher.Click on image for full sizeThen we draw the Fibonacci Fans of the uptrend form the low of 23.5K to the high of 29.5K and we get the trends possible Support and Resistance lines. Immediately we see that we are testing the lowest support uptrend line making this place a good entry point if you believe the price is going up. If you are not so sure then watch to see if this price break the uptrend and heads lower for a new support level.Click on image for full sizeBefore deciding if we take a position on this uptrend we look at the longer term Down-Trend vs this Short-Term Uptrend using the fans. Looking at the down trend we bounced from the bottom support line of the down trend and heading for the first resistance level of the down trend. Clearly we are not out of the woods yet and we need to break through some resistance before we can say the down push is over.Click on image for full sizeA day trader that takes a position on this uptrend, which looks very risky, would be looking to take some profit quickly if the price breaks to the upside. The question then arises when should he sell? Here is where the Fibonacci Extension Tool provides some guidance. To use this tool click on the Fibonacci Retracement Tool then on “Tools”, and from the drop down menu select the Fibonacci Extension Tool. Now click on the low price of 23.5K and then on the high price of 29.5K and the lines will extend beyond the high price of 29.5K.Click on image for full sizeFibonacci numbers say the first out is at 161.8% 33K, the second out is at 39K and the third out is at 48K. These numbers simply represent possible high resistance areas where the trend could reverse or have a temporary retracement. Please notice how these lines do coincide with important resistance levels. Remember that other skilled traders are using the same tools so they may get ahead of you. For example look at the sell wall placed at 38K in anticipation of the 1st resistance level to get out.Click on image for full sizeNow you have all of the tools to follow these trends and to get some ideas of the possible RISK vs REWARDS (short-term). Click on image for full sizeI have been buying on all the dips and not playing the day-trades. Buy on the support levels and never sell.Buy-BlackShare this article:The following two tabs change content below.BioLatest PostsBuy-BlackLatest posts by Buy-Black (see all) ALWAYS BET ON BLACK - Update 33 - May 25, 2014 ALWAYS BET ON BLACK - Update 32 - May 24, 2014 ALWAYS BET ON BLACK - Update 31 - May 16, 2014
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WulfcastleApril 25, 2014 at 17:21 Dude, you are the BEST!!! I’ve reading your Always Bet on Black articles for close to a week now and it has helped my trading a lot. I can’t thank you enough. Thanks for all your help with the BlackCoin community we really aprreciate it
Buy-BlackApril 25, 2014 at 19:57 That is wonderful! I use to be in the dark about pricing but it is so much better when you have some tools to assist! The addition of BC to Bitcoindwisdom was fantastic.. More to come, I am not done yet! Thanks
