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It was developed to understand that the price of an exhausted sales model bottomed out. This model was designed using trend breaks, volume profiles and trend indicators.
In this strategy:
– Trend lines
– Moving averages.
– Dow Theory and Chart Formations can be used.
Several different concepts should be used to describe the trend change. The more verifiable the trader is, the lower the risk.
Exhausted Sales Model (TSM) rules:
1 – High volume should experience a rapid decline.
2 – The latest dip should be seen as a large bar on the high volume volume indicator.
3 – Higher Low should definitely be the wave.
4 – The Trend Trend line should definitely break.
5 to 40 or 50 period moving average must be broken.
6 – After the moving average is broken, the price must be bought and held back in the back test.
In Figure 2, the working example of this model is shown in the Bitshares / Bitcoin part of the principle.
There is no problem in using moving average types such as EMA, SMA, WMA. The greater the moving average period, the greater the success of the analysis performed. Because a long moving average break is more important support for the product.
Panic sales naturally generate tremendous opportunities for traders and investors who are well-informed. Knowing when sales are depleting provides a great deal of information to the investor. The exhausted Sales Model can be used to effectively determine the purchase regions.
Ripple / USD graphical analysis by exhausted sales model
On the Ripple chart, we observe that sales have been exhausted by TSM and a new uptrend could begin, with the 50-day moving average (pink) and trending downward trending (black) appearing to be the final outcome. If the buyer can defend this region if the buyer is back in the moving average benchmark (correction), these levels may be the beginning for higher prices. Such an action could create an opportunity to force 1 USD levels, which is the main resistance for Ripple.
Verge / USD graphical analysis by exhausted sales model
We are in the early stages of the TSM model on the chart. Although the sales seem to be exhausted, we see that the price does not completely get rid of the 50-day moving average (pink). This creates a horizontal consolidation region relative to the graph. In the upcoming phase, the price will become a very important region for backtesting buyers after cutting upward the moving average. Such a move could create an opportunity to force the main resistance for the Verge to the 0.07 USD levels.
Ethereum / USD graphical analysis according to the exhausted sales model
Ethereum graph shows that we are in the last stages of the TSM model. When we examine the volume bars, it can be said that the reaction of the buyers in this region is much more dominant than the sellers. However, the trend (black), which shows the declining trend, clearly shows that it is still pushing buyers as a resistance. In the same way it serves as a support for moving average (pink) buyers in this region. If the price escapes this zone of resistance in the following stages, the beginning of a new uptrend will become commonplace. Such a move could create an opportunity to force the main resistance for Ethereum, the 820 USD levels.
Disclaimer: These are not investment advice. Crypto money investments are high-risk investments. If you do not have enough experience and accumulation, you are advised to seek help from a counselor. Every investment decision is at your own risk. Uzmancoin and the content of this article can not be held responsible for personal investment decisions.