BTC bottom and top signal
Hello Everyone,
One of the best Technical Analysts in the world in the book Technical Analysis Explained (Martin J. Pring) explained the use of KST and different moving averages to track reversal and enter when an asset is bottoming or exit when it is topping. In this two indicators system, I use the 12 MA for short term price action and the KST, which track four cycles at any time, giving more weight to long term cycles. This system is very useful as it provides reliable signals, bullish or bearish, by following five different cycles at any given time.
As you can see from the chart, it has been very accurate for the past year.
So are we bottoming yet?
The system:
BOTTOM:
Price break above 12 MA (purple) with a bullish cross of KST, BOTTOM signal
TOP:
Price break below 12 MA with a bearish cross of KST, TOP signal.
So following the system, I won't look for any long entry. Instead, I will look for a short position or exit on this rally.
Can the system fail?
Yes, it can.
Likely to fail?
10-20% chance.
So in trading, a system that gives you 80% reliability is an edge compared to the market.
What will you do? (Comment below)
FOLLOW ME, SHARE, LIKE AND COMMENT
One of the best Technical Analysts in the world in the book Technical Analysis Explained (Martin J. Pring) explained the use of KST and different moving averages to track reversal and enter when an asset is bottoming or exit when it is topping. In this two indicators system, I use the 12 MA for short term price action and the KST, which track four cycles at any time, giving more weight to long term cycles. This system is very useful as it provides reliable signals, bullish or bearish, by following five different cycles at any given time.
As you can see from the chart, it has been very accurate for the past year.
So are we bottoming yet?
The system:
BOTTOM:
Price break above 12 MA (purple) with a bullish cross of KST, BOTTOM signal
TOP:
Price break below 12 MA with a bearish cross of KST, TOP signal.
So following the system, I won't look for any long entry. Instead, I will look for a short position or exit on this rally.
Can the system fail?
Yes, it can.
Likely to fail?
10-20% chance.
So in trading, a system that gives you 80% reliability is an edge compared to the market.
What will you do? (Comment below)
FOLLOW ME, SHARE, LIKE AND COMMENT
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