Trading Indicator
A powerful customized indicator with specific LONG and SHORT signals, divided into 3 risk trading modes: fast (20-25 signals/month for the 1H timeframe), medium (7-8 signals/month for the 4H timeframe) and slow (1-2 signals/month for the 1D timeframe). The signals are generated separately for all three timeframes when the trend of the corresponding timeframe changes its direction. A LONG signal is generated when the trend changes from bearish to bullish and a SHORT signal respectively from bullish to bearish.
It is strongly recommended to wait for the candle close and signal confirmation – don’t go for a tradeimmediately after a LONG/SHORT occurs, because things can change and the signal can disappear(especially using the slow mode and the daily timeframe – wait the daily close to confirm the signal).
Please note that if you use the 1D timeframe you won’t be able to see the fast and the medium trading modes with their signals (you will see only the slow mode). The same applies on the 4H timeframe – you will see only the medium and the slow modes.
The levels calculation is based on the Fibonacci method. Enter LONG if there is at least 1H candle close above the trend line and put a stop loss at the first support level. Take profits at R2 or R3. Enter SHORT if there is at least 1H candle below the trend line and put a stop loss at the first resistance line. Take profits at S2 or S3. Another good strategy is to have a LONG order at S3 and SHORT order at R3, because these are the strongest support and resistance levels for the day. Long, short or just spot buy and sell within the levels, which are updated daily, right after the daily close.
For your convenience and better market understanding we also added a table with some of the most important components in trading – 50, 100 and 200 daily moving averages, 21 weekly moving average, proven as one of the most reliable market prediction tools.
- 50, 100 and 200 daily moving averages – three of the most important moving averages. Our recommendation for trading: when the candles are above all DMAs we are in an uptrend (bullish), meaning that the moving averages are strong supports – feel free to put your long/buy orders around them. When the candles are below all DMAs we are in a downtrend (bearish), meaning that the moving averages are strong resistances – feel free to put your short/sell orders around them.
- 21 weekly EMA – one of the biggest support/resistance levels in crypto. People often call it a bull/bear market indicator. When the price is below this EMA it’s typically a bear market (red in the table) and when the price is above this EMA – we have a bull market (green in the table).
- Daily RSI – if the daily RSI is below 30 that means the asset is oversold (buy signal), if it is above 70 that means the asset is overbought (sell signal).
