R5 – US$5.45<\/li>\n<\/ul>\n<\/p>\n
Pivots condense in low volatility environments and expand in high volatility environments. Backtesting reveals yearly pivots were unable to correctly predict the ultimate target of the 2013 or 2017 bull rally. The Bitcoin price far exceeded all of the 2013 and 2017 yearly resistance pivots, but found support exactly on the 2018 yearly S1 pivot. In general, pivots can be thought of as a support and resistance ladder, not necessarily a highly likely target.<\/p>\n
<\/p>\n
Historic price averages can also provide a band of most likely price targets around a high and low zone. Using backtesting, various iterations of any high timeframe price average can be used, so long as previous highs can be accurately predicted.<\/p>\n
Prices below the moving average can be treated as areas that will likely find support and should be considered oversold conditions. Prices above some multiple of the moving average can be treated as zones more likely to find resistance and should be considered overbought conditions.<\/p>\n
The two-year moving average currently provides a lower limit of US$1.96. The two-year multiplier currently provides an upper limit of US$5.91.<\/p>\n
<\/p>\n
Using Tesla (TSLA) as an example, despite a continued run of price discovery earlier this year, the spot price was unable to sustain a continued rally behind the predicted moving average multiplier. In this case, the two-year moving average and three times the two-year moving average were able to accurately predict a resistance zone, which was also successful with backtesting.<\/p>\n
<\/p>\n
Most coins have both not had enough trading history and not held a continuous trend over multiple years. In this case, pitchforks may be a preferred intermediate trend channel.<\/p>\n
The pitchfork is drawn from three points; an extreme high or low, and two other highs and lows. The median line gives the expected mean reversion target throughout the trend as the price will continually attempt to return to this diagonal.<\/p>\n
Each diagonal of the pitchfork can be thought of as a potential reversal zone or support\/resistance line. The upper blue diagonal zone being \u2018most overbought\u2019 or the top bounds of the trend and the lower blue diagonal zone being \u2018most oversold\u2019 or the bottom bounds of the trend.<\/p>\n
\n- Lower Limit – US$2.39<\/li>\n
- Median Line – US$6.04<\/li>\n
- Upper Limit – US$15.22<\/li>\n<\/ul>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Evaluating price discovery levels on a day-to-day basis can be difficult. Mapping out key levels of resistance in advance of any bullish price run can prevent shoot-from-the-hip decision making from creating a poorly planned trade.<\/p>\n","protected":false},"author":744,"featured_media":19184,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[1223,3612,475],"_links":{"self":[{"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/posts\/36017"}],"collection":[{"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/users\/744"}],"replies":[{"embeddable":true,"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/comments?post=36017"}],"version-history":[{"count":0,"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/posts\/36017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/media\/19184"}],"wp:attachment":[{"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/media?parent=36017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/categories?post=36017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bravenewcoin.com\/wp-json\/wp\/v2\/tags?post=36017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}