600 points in 5 hours - how?In this short video - 3 minutes - I show how small time frames can be useful if following a trend to best completion.
Trend following - the true kind - can deliver far more - than any other system of trading. It depends on your knowledge and skill of course.
The video shows 'you' could have extracted close to 600 points in one go.
Of course you have to be watching a screen or react to alerts that you set on Tradingview charts.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Triple Exponential Moving Average (TEMA)
Hitting the 2584 Fibonacci TEMA again. Time to go up! Our timezones and price zones have been hit and we're resting in the 2584 Fib TEMA (triple exponential moving average) on the 30m chart. This is the same place (relative to this TEMA) we were in last time we bottomed. Very high confluence area for wave 2 to reach its low. My time periods indicates this could be our last day before ripping. My target is over $61,000 in BTC for wave 3 top. I will actually be trading ICP because I like the R/R more than BTC and even DOGE.
Swing Trading Bitcoin Like A ProCryptohopper Newsletter
Market Analysis
After a 20% crash a week ago, Bitcoin is again testing the resistance around $10,000. Should this resistance break, $11,000 will probably be the next price target in this bull run. Even if the price does not break the resistance at $10,000, it still provides us with many opportunities for some very profitable swing trades, which we will cover in this newsletter!
Momentum + Trend
Professional traders will, in most cases, look at more than one indicator. They look at multiple indicators because each indicator, no matter how accurate, will always have drawbacks and will need to be complemented by at least another one. In our case, the weakness of Williams %R is that it will signal a buy continuously while the price is crashing, and you may enter a position too early. The drawback of the Tripple Exponential Moving Average (TEMA) crossover is that it may provide too many signals, especially in a ranging market. It will sometimes also signal a buy when the price is overbought.
However, when combining the two indicators, we can buy when the price is oversold and when the trend is back in our favor. Similarly, we can sell when the price is overbought, and the trend is no longer in our favor.
Generally, these indicators are among the first to react in their respective category. Williams Percent %R is a fast oscillator that detects when the momentum has shifted faster than the RSI or Stochastics. The TEMA is among the quickest moving averages, as it gives three times more weight to the most recent data than the regular EMA. Therefore it will also be among the first to react. Together these indicators can be used to great effect when taking long positions in a bullish market and shorts in a bearish one. They will provide signals often even on the higher time frames.
How To Trade Moving Averages In a Volatile MarketCryptohopper Newsletter
Chart
Bitcoincash has made a swift recovery of over 70% from its lows this year on the 13th of March. The markets have been very volatile over the past month, and Bitcoincash is no exception. Over the past days however, the price has entered in a consolidation phase between $180 and $225. Trend following indicators tend to work very well in volatile markets. Moving averages are a good example of a trend following indicator.
Let’s dive into how you could have used moving averages to trade this volatile market!
Different Types of Moving Averages
As you probably know there are many types of moving averages, but what are the best ones, and how to use them? This is what we will explore in this week’s technical analysis.
Generally the slower and longer moving averages are used in order to catch the bigger moves in the markets. The slower and longer a moving average is, the more reliable its signal is considered. The disadvantage however is that you may enter positions too late, or that you exit positions too late as well giving back most of your profits. The slowest moving average usually used by traders is the SMA (simple moving average) . This moving average gives the same weight to all of the past closing prices.
Faster and shorter moving averages are then used in order to catch every movement of the price. The advantage of the faster and shorter moving averages is that you will be able to capture all of the market moves early on; at least earlier than the slower moving averages. However the disadvantage to these is that they give a lot of fake signals, so a trader may enter positions on trades that never comes to fruition. The fastest-moving average that is generally used by traders is the TEMA (triple exponential moving average) . This moving average reacts faster to price movements as it gives a lot more weight to the most recent data.
So, how can we create a trading system based only on moving averages, that works? This is what we will explore in the next section.
Moving Average trading system
As slower moving averages tend to give fewer and more reliable signals we can use one in order to time our entries in the market. This way we will limit the number of fake signals and as such our % of winning trades should increase. We can thus use the cross between the 10 EMA and the 30 EMA for this purpose. The EMA is slightly faster than the simple moving average as it gives more weight to the most recent data.
We can then use the TEMA in order to time our exits in the market. A TEMA can be useful as a sell signal, as it reacts faster than the other moving averages and will thus take the profit sooner. The advantage of using a TEMA is that you will exit the trade sooner, and as such you will not be giving as much profit back.
Both the EMA and the TEMA are available at Cryptohopper, along with many other different types of moving averages. Create your fully automated trading system with moving averages today, by joining us on Cryptohopper!
[AU] Mnemosyne v04 Mnemosyne v04
Fibonacci oscillator with Lead-Follower-Base design and optional dynamic Caution Zones.
Adjustable lengths and new defaults for Lead, Follower 1/2, Base
12 Smoothing options available: "SMA", "HMA (Hull)", "EHMA (Exponential Hull)", "EMA", "RMA", "WMA", "DWMA (Double Weighted MA)", "Ahrens MA", "ZLEMA (Zero-Lag Exponential MA)", "LSMA (Least Squares MA)", "JMA (Jurik MA)", "T3 (Tilson MA)"
Shown here from top to bottom: Mnemosyne with SMA, Hull, JMA, LSMA. Each line has an adjustable length and configurable smoothing options available.
BTC Running With The Bulls?The past week has seen a steady increase in BTC price. While some are predicting an upcoming reversal, there is decent evidence of a continuation.
Looking at the chart, we can observe an ascending triangle pattern forming(represented by the dotted pink line). This pattern formation in the midst of a positive price trend can typically be viewed as an indication of trend continuation. Further in-depth technical analysis results in a similar conclusion.
The bottom chart (The Trend Sniper) shows an adjusted DMI, with DI + shown in green and DI- shown in red. At 2:00 on June 19th, we see a cross-over occur, with the DI+ rising above the DI-. This ended the brief ranging period highlighted in the light grey box and signaled the start of a positive price movement. Since this crossover, positive directional movement has steadily increased, while negative directional movement has steadily decreased. It is safe to say there will be continued positive momentum until we begin to see the DI- values beginning to climb and head towards another crossover with DI+.
To assess the volume patterns and possible divergences, we analyzed the OBV-based Divergence Detector indicator. The chart echoed the signals generated by the Trend Sniper. For the most part, the OBV's movement has matched the BTC price action. Although the past 24 hours has seen a few bearish divergence signals (highlighted by the pink circles), the OBV value has remained above zero and confirms the recent positive price movement.
The third chart from the bottom shows a Triple Exponential Moving Average accompanied by a Volume-Weighted Moving Average. The VWMA is shown as the darkest red/green line. When the VWMA value is greater than the three EMA's, the area between the VWMA and EMAs has green fill. When VWMA falls below the TEMA, the area representing the difference between the values has red fill. We have seen the VWMA line crossover the TEMA (circled in green) within the past 4 hours, indicating the beginning of another uptrend confirmed by concurrent increases in volume.
The PowerTrader indicator shows a steady climb in Balance of Power (BoP) values from June 18th onward. This gives us yet another hint that this bullish trend hasn't quite run out of gas just yet.
we wait for the daily $eth gold cross...logarithmic says we may of established the early stages of a new eth trend. the last trend lasted from feb 2017 - april 2018 - imagine that leveraged long!
if the trend detector crosses up (100/7) and we get the golden cross as confirmation (50/200) then expect the 100 triple smoothed ema to follow suit by crossing the mean.
if all of these occur - enter long
BTC Rally-Fall 2017-2018 as seen via EMAsWhen I get tired of looking at the hourlies, and moreso, tired of worrying about overspending my fiat on BTC, I like to zoom out and look at the big picture, and see what can be learned from the past. This is what I wish I had known back a few months ago.
You can see the buildup to the point where the TEMA's are layered, 50-100-200. The price level pushes past the 50 for a contiguous month in Nov. Dec, with one day where it touches contact again. The crossover happens again at 18k. Would have been a great place to sell.
We see an inverse of the EMA layers again on the selloff. I think it's important to pay attention to normal EMA indicators, since not everyone is on TV and has TEMA's. Such as when the last big selloff occurred on a crossing of the 100EMA.
It is also interesting to note that the rise and selloff are approx 1 mo each.
BTCUSD - Still have time to play alt coins!Note: this idea is extremely time constrained and may be irrelevant by time you read it.
1 hour just closed with a doji candlestick! We still have time to play alts as long as BTC is carefully watched.
+ Closed right on the 38.20% retracement (peak is drawn from $11185.10)
+ Jumped speed resistance fans like it was made for puppies
+ BTC can definitely drop a few dollars and ride the fan line, no $100 drop (yet)
- RSI has flattened out
- Price stagnation and a bad candle close can lead to a big dump (or a pump but it looks bearish as of posting)
+/- Inside main trend channel. Good because we're safe, but we may hit the bottom of it if support fails.
- Extreme divergence from the two moving averages. Usually when this happens we're bound for a correction.
- Buy volume lacking
Stay safe out there!
VTC/BTC breakout of the triangle... potential uptrend starting!Hello traders!
After a long 50 days or even more we finally saw a first canddle closing above DEMA 50. Now we can see a crossover of TEMA and a nice bullish STOCH and RSI on 4h.
We saw a nice breakout from a triangle that was ''generating tempo'' for a long time now.
The only thing bearish right now is STOCH on daily but that should be fixed with a bit of a straight movment market since the 0.382 Fibb and 50dema are too strong to break on downtrend in my opinion.
A.J.
