Estimating Key Levelsof BTCUSDT Using "Predict Beta" Indicator
Updated
I've developed a key level indicator (temporarily named “Predict Beta”) aimed at forecasting and estimating key levels within the next 14 to 21 bars. It utilizes RSI data and net change values for each bar, focusing on key levels such as 30%, 50%, and 70%. Additionally, I've incorporated a 50% Exponential Moving Average (EMA) in yellow to aid in assessing changes in the bar's 50% key level.
An interesting observation is that the bend in these key levels appears to signify bullish or bearish pressure. A downward bend may suggest impending bearish momentum, while an upward bend could indicate forthcoming bullish momentum. These momentum shifts are often accompanied and confirmed by regular divergences between price and RSI. Based on these observations, short and long positions can be initiated upon price closure below or above the 50% EMA, respectively. Alternatively, positions can be entered by placing limit orders corresponding to each key level.
In this 1-hour chart, it's evident that the key levels are beginning to ascend, signaling the onset of bullish pressure. Should this trend persist, I'll be on the lookout for bullish divergences in lower time frames and consider initiating a long position upon price closure above the 50% EMA. I'll use a stop loss and take profit ratio of 1:3.
(Note: This indicator has not been published on TradingView)
/please DYOR/trade at your own risk
An interesting observation is that the bend in these key levels appears to signify bullish or bearish pressure. A downward bend may suggest impending bearish momentum, while an upward bend could indicate forthcoming bullish momentum. These momentum shifts are often accompanied and confirmed by regular divergences between price and RSI. Based on these observations, short and long positions can be initiated upon price closure below or above the 50% EMA, respectively. Alternatively, positions can be entered by placing limit orders corresponding to each key level.
In this 1-hour chart, it's evident that the key levels are beginning to ascend, signaling the onset of bullish pressure. Should this trend persist, I'll be on the lookout for bullish divergences in lower time frames and consider initiating a long position upon price closure above the 50% EMA. I'll use a stop loss and take profit ratio of 1:3.
(Note: This indicator has not been published on TradingView)
/please DYOR/trade at your own risk
Note
the up-bend changed its direction to down-bend indicating a bearish pressure. It seems that I need to wait for the bend to stabilize by waiting for 2 to 3 bars to close after each bend.
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