Bitcoin
Long

Corrective wave or impulse wave?

118
Here are my thoughts.

I think as an analyst, I'm okay. But as a trader, I need to work on my emotional bias.

For the last 12 hours we have been on a trend upward, but is this an impulse wave up, or a corrective subwave of a wave down?

IMO - if you compare this wave (which I labelled as subwave 4 of wave 2) with subwave 2, they look remarkably similar in candles and RSI.

Also compare the RSI with other impulse waves up. I use the 30 min RSI because it provides to me the clearest indication of the start and end of waves. Previous impulse waves up had the 30 min RSI dip below the 30% line, then hover above the 30% line before swinging violently up. For the rest of the entire impulse wave, the RSI appears choppy but clearly looks to average above 50%.

For a corrective subwave of a wave down, the RSI looks smoother and less choppy and lives most of its life below the 50% 30min RSI. This is because the bulls and bears are fighting and it's pretty even. For the most part, since it's corrective - of course the RSI is trending upward, but the smoothness of the RSI indicates an unclear mood.

On the other hand, on an impulse wave up - the 30 min RSI looks to average clearly above 50% and is much choppier. That's because even though the general mood is bullish, it's a healthy up and down RSI.

A great example of a bull trap, is that fake out yesterday. The 30 min RSI looks very very suspicious. An abnormal jump followed by a flat line.

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