The two charts above are both BTC/USD. One of them is from the CME (Chicago Mercantile Exchange) and the other is from a standard CEX (Centralized Exchange).
Purpose of this post is to outline that I am currently relying on the market structure trendline provided by the CME chart rather than other charts. CME trades much more like a standard stock or index in that it can’t be traded on weekends, and can only be bought or sold on an institutional-retail type of level. This also removes a lot of the volatility/extremes in price action, which is why I am currently relying on the CME chart for current market structure.
The charts attached show the differences in clarity. The CME chart has a very well-defined market structure that touches several wicks. While the other chart shows that the trendline can be easily interpreted in several ways and can impact the level of a breakout but well over $1k.
I frequently chart CME alongside other BTC charts for reasons like this. I don’t rely on it unless it provides me a more clear viewpoint, but it is good to identify when those opportunities arise.
The two charts above are both BTC/USD. One of them is from the CME (Chicago Mercantile Exchange) and the other is from a standard CEX (Centralized Exchange).
Purpose of this post is to outline that I am currently relying on the market structure trendline provided by the CME chart rather than other charts. CME trades much more like a standard stock or index in that it can’t be traded on weekends, and can only be bought or sold on an institutional-retail type of level. This also removes a lot of the volatility/extremes in price action, which is why I am currently relying on the CME chart for current market structure.
The charts attached show the differences in clarity. The CME chart has a very well-defined market structure that touches several wicks. While the other chart shows that the trendline can be easily interpreted in several ways and can impact the level of a breakout but well over $1k.
I frequently chart CME alongside other BTC charts for reasons like this. I don’t rely on it unless it provides me a more clear viewpoint, but it is good to identify when those opportunities arise.