Expansions of the “golden mean” in the form of the Fibonacci ratio have found their stronghold in technical analysis as a long used edge for predicting retracement levels and future distribution zones as exit targets. We have extracted edges in the often-underestimated trading aspect, time.
If you want to learn more about “The Beauty Principle”, we recommend taking a look at some our past chart-books:
- May 17th, 2021, Crypto Chartbook – Bitcoin, the beauty principle
- February 22nd, 2021, Crypto Chartbook – Bitcoin, supreme beauty in motion
- July 2nd, 2018, Crypto Chartbook – The Beauty Principle
BTC-USD, Daily Chart, Time as support:
Bitcoin in US-Dollar, daily chart as of August 25th, 2021.
We posted the above chart on August 25th in our weekly chart book publication at that time. If you compare to the recent chart below, you will find a progression of price stunningly adhering to the predictive value of the white time arcs.
BTC-USD, Daily Chart, Stacking edges for low-risk entries:
Bitcoin in US-Dollar, daily chart as of September 14th, 2021.
You can make out that price made a double bottom (yellow horizontal line) precisely at the time when arc two was reached from a time perspective. The time element served as an extra edge for low-risk entry points. Price adhered to the rising arc and again found support when arc three was reached. Using lesser-known edges like these helps for low-risk entry timing.
BTC-USD, Daily Chart, Time and price:
Bitcoin in US-Dollar, daily chart as of September 14th, 2021.
Another edge tailored to bitcoin is a combination of both, price and time. You will find in the chart above that bitcoin, when trading near the statistical mean (red line), has substantial advances after building a double bottom. This fact is advantageous, since many mathematical edges cease when the price is near the mean. If prices originated from a previous up-leg, we find these times to be sensible looking for additional edges to low-risk entry points.
BTC-USD, Daily Chart, early warning signals:
Bitcoin in US-Dollar, monthly chart as of September 14th, 2021.
On July sixth, we posted another chart that involved time analysis under our beauty principle edge structure, and projections came true. If you followed us at the time with the entries we posted live in our free Telegram channel, you were able to nearly double your money. Now we have taken substantial profits off the table. Should the monthly candle to the very right, representing September, close as a bearish red candle, a second down leg could be in store for bitcoin.
From a fundamental beauty perspective, bitcoin has found itself transcended from a practical philosophical idea and inspired bodies collecting it at the time. Now it is already a store of value of over a trillion-dollar value. While not yet a unit of account, we see more and more significant cases where bitcoin is used as a medium of exchange. There is still a lack of understanding of bitcoin and its beauty at present. But nature shows that beauty typically persists, and mass adoption is undoubtedly a highly likely possibility.
Bitcoin and the beauty principle:
Due to the high degree of variables in the market present, it provides a vast field of possibilities of interpretation. Consequently, it allows generous room for new edges to be extracted. Critics of technical analysis often claim that technical analysis is nothing but a self-fulfilling prophecy, which is only partially true. By definition of a principle being a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or a chain of reasoning, it is an ultimate truth with inherent high value. We find the laborious effort to search for new ways to define market behavior as essential. After all, a significant edge is only the one known by a few.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The views, thoughts and opinions expressed here are the author’s alone. They do not necessarily reflect or represent the views and opinions of Midas Touch Consulting.
By Korbinian Koller|September 14th, 2021|Tags: Bitcoin, bitcoin consolidation, Bitcoin mining, crypto analysis, Crypto Bull, crypto chartbook, crypto mining, low risk, quad exit, technical analysis, trading education|0 Comments
About the Author: Korbinian Koller
Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent. Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.
