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| comment | | "parent_author":"",<br>"parent_permlink":"bitshares",<br>"author":"bitgeek",<br>"permlink":"bitshares-price-forecast---13th-november",<br>"title":"Bitshares Price Forecast - 13th November",<br>"body":"\n<html>\n<p><img src=\"https:\/\/www.dropbox.com\/s\/i1hy8ptuxojg1md\/cover.PNG?dl=1\"\/><\/p>\n<h1>Price Forecast Report for Bitshares — 13th November 2017 <\/h1>\n<p>Welcome to the Price Forecast Report for Bitshares — 13th November 2017. <\/p>\n<p>This report investigates 4 popular technical analysis indicators: <\/p>\n<ul>\n <li>Moving Average Convergence Divergence <\/li>\n <li>Relative Strength Index<\/li>\n <li>Aroon Indicator<\/li>\n <li>On-Balance Volume<\/li>\n<\/ul>\n<p> The above indicators are used in technical analysis as tools for forecasting the direction of prices through the study of past market data,<br> primarily price and volume.<br>\n<br>\nThey are based on the idea that the market for buying and selling digital currencies is not efficient and historic prices can be used to predict future price movements,<br> and using these tools can be advantageous to investors and traders. <\/p>\n<h2>Moving Average Convergence Divergence (MACD) <\/h2>\n<p>Moving average convergence divergence (MACD) is a trend-following indicator of momentum that illustrates the relationship between two moving averages of prices. The MACD is estimated by subtracting the 26-day exponential moving average from the 12-day moving average. A nine-day exponential moving average of the MACD,<br> the \"signal line\",<br> is then plotted on top of the MACD,<br> functioning as an identifier for both buy and sell signals. <\/p>\n<p>The graph below shows the MACD applied to the price of Bitshares using daily price data for the last 40 days. <\/p>\n<p><img src=\"https:\/\/www.dropbox.com\/s\/pyfndlv6j9j00ja\/MACD20171113_1510614021.PNG?dl=1\"\/><\/p>\n<p> As shown in the chart above,<br> the MACD is currently above the signal line,<br> implying a bullish signal,<br> indicating that it may be an optimal time to buy. <\/p>\n<p>According to the MACD,<br> a bullish signal suggests that the price of the asset is likely to experience upward momentum. <\/p>\n<h2>Relative Strength Index (RSI)<\/h2>\n<p> The relative strength index (RSI) is another price momentum indicator that compares the size of recent gains and losses over a specified time period to calculate speed and change of price movements of a digital currency. It is mainly used to identify <a href=\"http:\/\/www.investopedia.com\/terms\/o\/overbought.asp\">overbought<\/a> or <a href=\"http:\/\/www.investopedia.com\/terms\/o\/oversold.asp\">oversold<\/a> situations in the trading of a digital currency. <\/p>\n<p>RSI values of 70 or above are traditionally seen to indicate that a security is becoming overbought or overvalued,<br> and therefore may be set for a trend reversal or corrective reduction in the price. On the other side,<br> an RSI reading of below 30 is generally interpreted as indicating an oversold or undervalued condition that may signal a change in the direction of the price to the upside. <\/p>\n<p>The graph below shows the RSI applied to the price of Steem based on daily price data for the last 40 days. <\/p>\n<p><img src=\"https:\/\/www.dropbox.com\/s\/pestc0wmk5pyhgg\/RSI20171113_1510614021.PNG?dl=1\"\/><\/p>\n<p>Since the RSI is currently between 30 and 70,<br> this would indicate that Bitshares is neither overbought or oversold and that no material price change is expected. <\/p>\n<h2>Aroon Indicator<\/h2>\n<p>The Aroon indicator can be used to identify trends in digital currency prices and the likelihood that the trends will reverse. It is made up of two trend lines: an \"Aroon up\" line,<br> which measures the magnitude of the uptrend,<br> and an \"Aroon down\",<br> which measures the size of a downtrend. The indicator reports the time it is taking for the price to reach,<br> from a beginning point,<br> the highest and lowest points over a given time period,<br> each reported as a percentage of total time. <\/p>\n<p>The graph below shows the Aroon Indicator using the price of Bitshares over the last 40 days. <\/p>\n<p>The Aroon indicators move above and below the centerline (50) and are bound between 0 and 100. These three levels can be explained as follows: When the Aroon-Up is above 50 and the Aroon-Down is below 50,<br> the bulls have an edge. This indicates a greater propensity for new x-day highs than lows. The opposite is true for a downtrend. The bears have an edge when Aroon-Up is below 50 and Aroon-Down is above 50. <\/p>\n<p>In the graph below,<br> the Aroon-Up is above 50 and the Aroon-Down is below 50 indicating a bullish signal.<\/p>\n<p><img src=\"https:\/\/www.dropbox.com\/s\/vl8tvcl8licv1so\/AROON20171113_1510614021.PNG?dl=1\"\/><\/p>\n<h2>On-Balance Volume (OBV) <\/h2>\n<p>The OBV indicator can be used to measure the positive and negative movement of volume of a currency relative to its price over time. <\/p>\n<p>The idea is that volume precedes price movement,<br> so if a currency is experiencing an increasing OBV it is a signal that the level of volume traded is increasing on upward price moves. Decreases mean that the security is seeing growing levels of volume on down days. <\/p>\n<p>The graph below shows the OBV applied to the price of Bitshares using daily price data for the last 40 days. <\/p>\n<p><img src=\"https:\/\/www.dropbox.com\/s\/mvimf80q1rdb4i1\/OBV20171113_1510614021.PNG?dl=1\" width=\"564\" height=\"564\"\/><\/p>\n<p><strong>Please note that the above indicators can give false trade signals and use of such tools should be treated with caution. Blindly using technical pricing indicators without a general knowledge of fundamentals or an understanding of the currency being analysed is not advisable.<\/strong><\/p>\n<p>Thank you for reading<\/p>\n<p> <em>Source of data: www.coinmarketcap.com<\/em> <\/p>\n<p><br><\/p>\n<\/html>\n",<br>"json_metadata":" \"tags\": [\"bitshares\",<br> \"cryptocurrencies\",<br> \"money\",<br> \"stats\",<br> \"trading\" " |
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