- Overall
- Value Area Trading (VAT)
- FRPV
- FVG
- Trend Reversal
- Conclusion
(this is a bit of a sneakpeek into VAT that I'll be sharing in my free course that releases in the new year that you can use on any #Crypto or #cryptocurrency
Overall:
BTC has been in a range (to a certain extent) since the start of December (some call it diagonal, I call it a series of ranges within a range)
We're now seeing some MSB to the upside, which *could* signify a trend reversal...but, let's keep reading first
VAT
Did you know that if you turn off the price of the ticker that you're observing, and then turn on VPSV, you can get a clear view of Volume Profile Session Volume?
This is really handy without the noise of price on the chart for determining poor lows and highs etc
VAT Cont'd
With VAT, the grey area on my chart shows where price spent 70% of the session (each day), the remaining area is the other 30%, shown either side of the grey area
If the other 30% (blue lines) are short in length vs grey, it means that price spent little time there
If we see really short blue lines vs grey lines above or below the Value Area (remember, where 70% of trading volume occured during the session), then we can classify these as poor highs or poor lows.
See below in red boxes
Notice though how each of these red boxes are 'filled' if you will - shown here with a green box
Now, what we can see is that we've experienced a poor low in terms of VAT, based on the sudden movement up with $BTC, and based on the images shown, this area could look to be filled
VAT & FRPV
Now that we've investigated the VPSV to show how areas can be filled, let's check out the FRPV based on where price is currently trading, I've pulled the FRPV to the areas shown in blue boxes
We'll keep the VPSV shown for a sec here
FRPV & VPSV
Note the first image as the FRVP pulled as previously shown
Note the second image shows the VPSV
Price & FRVP, VPSV
Now, look at how price respects the FRVP VAH & VAL's, and we are also trading right around the POC of the FRVP as well
Note that we're at the VAH now, close to POC, and have a poor low below us.....
Fair Value Gap
Where price moves quickly in one direction without the interaction of a wick or body of an opposing candle to 'close' the area
Shown in red are FVG's that have been closed. In blue are the open FVG's
You can see that price fills these gaps.
Trend Reversal
Now that we've experienced a MSB to the upside, per my handy sketch I made in the first image, we could expect a retest of support / demand / orderblock before running higher.
Conclusion
When we compare poor lows, FVG's, VAH's, POC's , trend reversal play outs, & general price action concepts into the mix, you can see that blindly longing into resistance and against PA principles isn't the best option (and santa is watching)
Hopefully this has helped you frame your own trading a bit better from a logical approach / standpoint.
I'm not saying you don't already have a logical approach, but this is how I approach the situations presented to me
Cheers guys - say hi to the old chook for me!
🤝🍻
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Here's my 100 weeks of backtested $EURUSD price action from June 15 2020 to 09 May 2022, here's what is covered:
- Occurrence of high & low of the week
- % of high and low of the week per day
- % of Mondays high / low being swept on a given day
Took me a while, hope you enjoy
The high and low of the week
Here we can determine that the low of the week fell 38/100 times on a Mon, while the high of the week was also most likely to form on this day too with 31/100 occurrences
Note that there's during the week, there's more of a spread compared to $BTC
Percentage / Chance wise, you can see that Monday is more likely to be the low of the week by a factor of 5, 2, and 3 compared to a T, W, or Th respectively
Friday is different though.
With the high of the wk, Monday leads, followed by a Thurs, then Friday.
I made a free Price Action course not long ago - I'll share some detailed threads on portions of the course so you don't have to spend hours watching them when trading #Bitcoin & #Altcoins
We'll jump ahead to Module 4 - Ranges & Targets.
Why? Because I loved sharing this one!
What's in a Range?
A range is simply defined by anchoring two points on a chart based on:
A timeframe (daily, weekly, monthly etc)
Market structure
Or a combination of both
The method I use to anchor the range is a Fibonacci Tool, with values set at 1, 0.5, and 0
Range Tool Setup 1/1
1) First Select the 3rd item down on the left hand side menu
Then select "Fib Retracement"
2) Open up the settings of the Fib Retracement Tool, then set up the Fib tool to show the 0, 1, and 0.5 levels
The Trend Continuation fibs - covered in upcoming Module 3
Of course these are originally based on the ICT fibs, but nuanced per the following for #crypto & #bitcoin
- 0.72 entry point
- A negative 0.12 level
- 0.28 level
Why though?
The 0.72 Entry Point:
The reason for this is simple - it's the mid point of the 0.66 and 0.786 levels of the fib, where I've personally found much better entries and setups using this
The negative 0.12 level:
Included in this particular suite of fibs because you're looking for a get in, get out move that simply beats previous market structure.
By entering at the 0.72 level, this -0.12 level yields a 3RR move if the SL is at 1.
I backtested 100 weeks of $BTC #bitcoin price action from June 15 2020 to 09 May 2022, was able to determine the below:
- Occurrence of high & low of the week
- % of high and low of the week per day
- % of Mondays high / low being swept on a given day
8 hrs of research for you:
The high and low of the week
Here we can determine that the low of the week fell 43/100 times on a Mon, while the high of the week was also most likely to form on this day too with 27/100 occurrences
The rest of the days are generally similar, bar Tuesday lows & weekend highs
Percentage / Chance wise, it's obviously a no brainer in the fact that given the sample data of 100 weeks, that the % are simply a given of the numbers above