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Unique indicator by DeMark: TD Moving AverageDear friends! I continue describing the collection of Thomas DeMark’s forex indicators. In my previous articles, I have already explained such tools as Today, I going to deal with one of the most commonly used indicators in the trading world. This is the moving average MA, but it is not just a usual MA, it is Thomas DeMark Moving Average (TD Moving Average). Anyone, who has ever employed this indicator, knows that it, on the one hand, is rather simple to use and sends quite clear signals; on the other hand, it has a number of significant drawbacks, as it is ineffective in high volatility markets or nontrending markets. In addition, the moving average is a lagging indicator, therefore relying on its signals alone in its usual form is not the most effective trading strategy. Of course, you can increase the period of the Moving Average to reduce the number of false signals, but in this case the lag will be even greater and there will not be much sense in such signals. If you significantly reduce the MA period, the lag from the price will be minimal, however, the number of false signals will sharply increase. Thomas DeMark invented a new kind of the Moving Average indicator. He tried to maintain the advantages of the indicator but eliminated its drawbacks. That is how there appeared two indicators: TD Moving Average I and TD Moving Average II. TD Moving Average I was originally designed as a trailing stop, and it was to indicate the level to exit a trade. However, the indicator in fact has become very efficient in identifying the trends in the market and finding out not only the right exit levels but the entry points as well. At the same time, like all other TD indicators, TD Moving Average I is drawn based on relative price movements, rather than absolute values, and therefore, no separate settings for each timeframe are required. So, in order to avoid a time-lag, you just need to track the indicator on shorter timeframes. Before I start explaining the indicator, I want to thank @GravityWave, who made this indicator available to everyone in the tradingview library. Let us study the case when a moving average signals a bullish trend It occurs when the current bar’s low is greater than all previous 12 lows. If this condition is met, the indicator analyzes the current price bar and three more in future. If during the period of these four bars, the low isn’t higher than the 12 previous lows, the line disappears. If during one of these four bars, the low is higher than 12 previous lows, TD Moving Average I will be active during at least four next bars. It is clear from the above figure that once there is a bar whose low is greater than 12 previous lows, there starts a bullish TD Moving Average starting from the 12th bar .https://www.tradingview.com/x/kYCYRC0d/ The chart above provides a good example of the rule when the moving average is extinguished, i.e. the bullish trend is cancelled. You see that the low of June 27 is lower than the previous 12 lows and the next three bars can’t consolidate their lows above the 12 previous ones. Therefore, as soon as there are four bars complete, there is a reversal signal at the fourth bar and the bullish trend extinguishes. In general, if we know how this indicator is constructed in such cases, as it is demonstrated in the chart above when the low is much lower than the previous ones, we can already understand that the lows of the next three bars will hardly exceed the highest low of the last 12 bars. So, without wasting time, we can already look for a point to exit a trade. If we go back to our example, it is clear at already the third bar that the highest low at 11 741 USD won’t be broken through, and so, one could take profit from the long trade, rather than wait until the fifth bar closes (marked with a red tick). This case illustrates how a thorough understanding of the indicator work principle helps employing it as effectively as possible. When there is a downtrend, a bearish moving average is built according to a similar calculation formula. Only 12 highs are analyzed instead of the lows. It is clear from the above chart that once there is the 13th bar whose high is lower than 12 previous highs, then, starting from the 12 bar, there starts a bearish TD Moving Average, which is a sell signal. If we apply the above conditions to the same chart, there will be an interrupted moving average, where the green line drawn under the lows will indicate a bullish market, and the red one, above the highs, indicates a bearish market. In this case, according to the classics, the entry point will be the first candle in the trend (indicated by the arrow in the chart above), and the exit point will be at the close of the bar after the projection crosses the last value of the bullish (bearish) TD moving average (the points are marked with crosses in the chart above). As it is clear from the chart above, if the market is trading flat, such trades don’t yield significant profits, and may often result in losses. To rule out such cases, one should employ this indicator together with other DeMark's tools, including TD Moving Average II. This indicator is displayed in the chart above (thanks parsak21 for free access to the tool!). TD Moving Average II is made up of two simple moving averages (SMA) that are drawn based on the close. The short-term MA is a 3-period line, the long-term one is a 34-period SMA. Whereas TD Moving Average I needs a specific condition to be met in order to appear on the chart (so that it can indicate the market is trending), TD Moving Average II is always displayed. The tree-period moving average is drawn in comparison to the close level two bars ago, and the 34-period moving average is drawn based on the previous bar. Unlike traditional moving averages, however, TD Moving Average II applies a rate of change (ROC), to each of the averages. I described the rate of change (ROC). Therefore, the market sentiment is purely bullish when the ROC is in the buyer zone, and the short-term three-period MA is above the thirty-four–period moving average. In the above figure, I highlighted such zones with green. As you see, they cover most of the bullish trend. When the ROC is in the neutral area or in the seller zone, one mustn’t buy. Those, who have long positions open, should take the profit, even if the short-term MA is still above the long-term 34-period one. Finally, if you apply the TD Moving Average I, the TD Moving Average II and the ROC together, you will have quite a safe trading strategy. A buy entry will be indicated when all the above tools send a buy signal (marked with a green arrow). However, as MAs are a lagging indicator, I recommend looking for an exit point in short-term timeframes. In our example, the entry point is in the daily timeframe. So, the exit point will be signalled when the TD Moving Average I indicates a bearish trend on the H4 timeframe. As you see from the chart above, there are hardly any false exit signals on the historical data. In addition, we have always been in the trend and taken the most profits from the bullish trend. We shall see how this strategy will perform in future. So far, I have finished describing another tool by Thomas DeMark. I will describe other useful DeMark's indicators and explain how to apply them to BTCUSD trading in my next articles. Subscribe not to miss the continuation! I wish you good luck and good profits! Great regards! Mikhail @Hyipov ________________________________________ PS: If you agree with my ideas, write “+” in the comments; if you don’t agree, put “-”. If you liked the post, just write thank you, and don’t forget to share the post. It is easy for you and I will be very pleased :)
by Hypov
16
$TRX/BTC 1D: Close to the bottom? Justin Sun has some explaining to do... Daily time frame, the orange line is resistance. Potential bottoming out here shortly on TRX, I am watching the moving averages for a potential long entry but this chart does look like a bloodbath. If things start to turn around here a long entry under 200 would be ideal, with the first target of around 330. Not taking this position yet, mainly neutral here seeing how things play out in the lower part of this TRX chart.
by TheDragonBTC
1
Iota preparing for MASSIVE move!Note the following from my 15m chart: A) Iota is currently in an ascending triangle (uptrend). It is also running out of space and looks like it will break around 4pm EST. B) The 50 day moving average is currently acting as a support. C) A cup and handle has formed which is a strong indicator of an up move. D) The key here is the purple resistance line, it has already tried to break a few times (see long wicks where price was rejected). If it breaks the resistance, expect a massive move up.
BINANCE:IOTAUSDLong
by Buzz_Leighton
Weekly Forecast Price Outlook (Frontrunning Bitcoin) So my last idea was the monthly (published about 2 hrs ago)... here is a breakdown to the next time frame down (the weekly) it's a rough forecast with no TDseq numbers drawn, only the red line as you can see to represent about where I think the price action will travel, but it gives the basic idea of what I'm expecting in the future - THIS IS WAY down the road, so I will update accordingly as time goes on. I drew some forecasts of where the MA's will be in colored dotted lines, once again, rough straight lines, but close enough If you're interested in learning, give a like and subscribe at my youtube channel : look up "Kick Back Time" on youtube There, if I start to get subscribers, I will be encouraged to teach through screen sharing videos. You will learn A LOT more that way. Once again, this is frontrunning, it's not an actual sure thing, only what I think is likely to happen. ALWAYS trade what the technical analysis tell YOU, NOT mine or even your own opinion BEWARE OF SHORTING ! at this time guys, you can get run over real easily with all these bullish indicators going right now, just look at the Moving averages on this snapshot alone. The long term trend is set Kick Back Time
BITSTAMP:BTCUSDLong
by Kick_Back_Time
Bitcoin squating for another jumpIt's Friday morning and another Bitcoin Breakdown analysis. During this week we experienced the breakout from the ascending triangle formation I reported on forming last Friday. The breakout occurred earlier than I hoped as the RSI was just to high to support a large breakout. As you can see on this Daily chart, there is a large presence of bearish divergence within the MACD and the RSI. I don't foresee this to be alarm bells to start looking at an upcoming bear market, but a healthy retraction to get our RSI back out of oversold territory. While we're on the top of RSI, if we take a look at the weekly RSI for BTCUSDT it is heavily within the oversold region. This retraction will hopefully bring it back down to just under 75 on the weekly RSI and around 50 on the daily RSI before we see another attempt for the bulls to over come. My next major point is the trend line I have drawn in yellow, I foresee the Price action to trend sideways or slightly down until it makes contact with the trend line, the following it until another large breakout occurs. This a more likely than a breakdown past the trend line to test the 45MA line. I try to keep these ideas simple and effective, if you feel there is anything i've overlooked or missed please bring it forward. The more ideas the better. I If you enjoy these weekly analysis and want more please follow me and i'll be sure to continue. The following ideas are general and you should contact a professional financial adviser before acting on any investment as it may not be best for your financial position. This is in no way finical advice, so do you own analysis before acting.
BITFINEX:BTCUSD
by IRApTOIR
RIPPLE [XRP/BTC] Analysis by MorpheusAll information is provided in the chart. (Point on Yellow-notes on chart to see description) Our profile publishes analysis that focus carefully examined and identified cryptocurrencies that achieve high profits. We base everything on our own, developed scheme, the understanding of the market and its behavior. If that sounds like it could be helpful for you, please follow us and hit the like button! Tips, notes & suggestions When you place a trade, always remember to set a stop-loss. Most important rule, is to be patient. Money come and go, you will always get another chance. Never invest heavy in one trade, be sure to spread your bags on different trades. We would appreciate if you would hit the like button to support us. Feel free to comment share your idea or comment down below Morpheus wish everyone out there, a good and a healthy life in the cryptocurrency-age.
Long
by UnknownUnicorn4777944
11
Bitcoin: Looking to Test the Local HighCoin Savvy here with a quick short term analysis. There’s something I want to talk about and it’s the 377 ema. Before I hop in, I discussed in my last post ( ) about how if bitcoin crosses the monthly candle above the 21 monthly ema (bullish on a very high time frame) then I could easily see price action get up to around $6,000 or $7,000, it’ll take some time. Now it’ll obviously have to break $5450 and $5600 before that happens so taking it day by day here. The daily candle closed tonight above the 377 ema and this has been providing resistance for the past month so far. Bottom indicator: RSI is in the neutral zone trying to test that 21 ema. There’s a little bullish divergence with a higher low on price action but a lower high on the RSI and allowing the indicator to reset a little while maintaining supports. Top indicator: Stochs having a fresh cross up and pointing up Daily chart looks like it wants to come up and test like $5450-$5600 That’s all folks, I’ll be writing about the 2 day and 3 day charts once closing time comes and discuss where price action can end up next. Coin Savvy, signing off. Enjoy your night, enjoy the charts, and respect the technical analysis .
BITSTAMP:BTCUSDLong
by Coin_Savvvy