Not much activity on the DCC chart thread so I thought I’d post a few charts that I have found interesting. Both charts have my favourite oscillator indicator, the WaveTrend indicator, plotted on them.
The first chart is a daily BTC (Bitcoin) US$ chart. What is interesting on this chart, apart from the fact that it is what I call “well behaved”, is the solid long term support at around US$6000 that is quite evident on the price chart. The WaveTrend indicator also seems to be very good at identifying the areas where BTC has been overbought and oversold. I’ve identified on the BTC chart the dates on which BTC was near the support line and the WaveTrend indicator then turned up resulting in a nice swing to the upside (see the blue arrows on the chart).
View attachment 1247015
Having owned some DCC back during the initial strong up move in November and December 2017, I was aware of the fact that a certain amount of DCC’s capital was in fact Bitcoin. So I was always of the opinion that the DCC SP and Bitcoin price action could be somewhat correlated. The daily WaveTrend chart for DCC is shown below. My first thought was that these two charts look very similar, although the DCC chart is not as “well behaved” as the BTC chart. I transferred the BTC blue arrows and dates onto the DCC chart so I could compare the price action. So my conclusion is that BTC is a good proxy for DCC and in the best case a lead indicator, and in the worst case a confirming indicator, for DCC swing trades. Currently the BTC WaveTrend indicator is heading up again with the BTC price rising from long term support, and the DCC WT indicator is looking like turning up soon with the SP sitting right on the 50MA. A break above 13c could see the Fib 100% 21c target come into play.
View attachment 1247018
So if you want to know the possible future direction of the DCC SP then you should watch the BTC US$ price action closely. Good luck everyone. DCC is now back on my watch/buy list.
