Performed some in-depth analysis on DMI/ADX which has revealed an interesting pattern with regards to BTC.
- If ADX is low (below my threshold), in an uptrend DI- can be above DI+ and still continue an uptrend.
- If ADX is high (above my threshold), as long as DI+ is about DI- then uptrend should continue.
- If ADX is high, it represents a much more volatile state and chances of a reversal in an uptrend appear higher.
- Currently DI- and DI+ are going down and ADX is heading up towards my threshold but not sharply. if ADX goes above it and DI- is above DI+ then it opens the possibility for a rejection and potential downtrend.
- If BTC can rise past 9,2-3, I think FOMO will occur and potentially test 10. If it finds support above 10, I think market sentiment will have fully shifted to bull
- If ADX is low (below my threshold), in an uptrend DI- can be above DI+ and still continue an uptrend.
- If ADX is high (above my threshold), as long as DI+ is about DI- then uptrend should continue.
- If ADX is high, it represents a much more volatile state and chances of a reversal in an uptrend appear higher.
- Currently DI- and DI+ are going down and ADX is heading up towards my threshold but not sharply. if ADX goes above it and DI- is above DI+ then it opens the possibility for a rejection and potential downtrend.
- If BTC can rise past 9,2-3, I think FOMO will occur and potentially test 10. If it finds support above 10, I think market sentiment will have fully shifted to bull
