5-28-2014 Bitcoin update!
First, thank you all for the feedback. I will do my best to improve upon them. Secondly, I got a few comments regarding the lack of indicators analyzing bitcoin. I would like to address this concern below
1. I do use indicators, albeit, only a few of them. I plan to introduce them one at a time in coming posts. I know all you bitcoiners come from different background; I didn't want to overwhelm readers on the very first post.
2. Using indicators such as, MACD, RSI or Stochastic does not bring any new information than bitcoin price. It simply filters price using moving average and high/low for easy reading. If price rise fast like recently, you can bet that MACD will cross and stochastic is a buy. Therefore, reading the price action of bitcoin itself is sometimes sufficient. Another point is that too many indicators all derived from price alone will suffer biases coming from one source.
When I traded stocks, I could derive different source of data in the stock market such as derivative options, commitment of traders report and so forth. This is not applicable to bitcoins.
I am working tonight on a post with an indicator called ON BALANCE VOLUME for very short term traders. Stay tuned.