Whenever there is a possible trend flip, we want to look at any clues that we can to understand if there is going to be a change. In this chart we have TOTAL, TOTAL2, BTCUSD, and ETHUSD all compared to eachother. February 24th, 2020 is the date for "Volmageddon". Here we have 3 of the 4 breaking trend and going from bullish to bearish. The only one that stayed bullish was ETHUSD. This gave us higher confidence of a trend reversal to bearish. So what is different about today?
As of September 3rd, 2020, we have 2 of the 4 breaking trend from bullish to bearish, with the other 2 remaining bullish. So it is a little more of a toss up. When something is 50/50, the trend is more likely to continue than reverse. So even though there may be more bearish downside in all 4, the chance of a trend change is less likely. So until we see the other 2 break bearish, we are selectively adding capital back to the market.
Happy Trading!
As of September 3rd, 2020, we have 2 of the 4 breaking trend from bullish to bearish, with the other 2 remaining bullish. So it is a little more of a toss up. When something is 50/50, the trend is more likely to continue than reverse. So even though there may be more bearish downside in all 4, the chance of a trend change is less likely. So until we see the other 2 break bearish, we are selectively adding capital back to the market.
Happy Trading!