Re: Wall Observer - MtGoxUSD wall movement tracker - Hardcore
These negative divergences against rises in price have been VERY VERY accurate indicators of moves down:
We have the longest one yet. I'd say the price is really wanting to adjust down but those huge buys with walls changed a bit of the natural movement.
Will be interesting to see what happens.
Isn't the reality exactly the opposite of what you say? The price really wants to move up, but there is a huge wall preventing it?
Blinkered much?
This isn't so much "my" opinion as it is years of TA analysis. A negative divergence of down volume on up price is one of the more reliable divergences in TA (though none are fool proof.)
Regarding your question, you are missing the important variable in the formular - Volume. If price wanted to move up it would buy, the coins are there, wall or not. Nothing prevents anyone from buying.
Looking at the recent history in the chart (and it's consistency of a down move in price after a negative volume divergence), we should not only correct, but correct hard as this divergence is a bit longer (thus far).
The unknown variable, per say, is that we are oversold. RSI is heading higher while the price remains low, one could argue that is a good divergence. (Though not very strong, the price is moving up.)
IAS