This is the cryptocurrency market outlook, based on my magical cocktail of purely technical indicators. This entails, that bullish or bearish signals given in this series do not portray my sentiment towards any particular project. And by any means this is no advice, financial or otherwise.
The system consists of:
- 3 indicators, handpicked from literally hundreds I've tested. Each offers different sensitivity, each of them quite accurate by itself, together meant to produce an highly accurate signal for entry and an early warning for open trades,
- 3 groups of moving averages - a battle-tested combination from forex markets, for the purpose of getting a bigger picture of the market. They indicate how cautiously I will approach signals from indicators,
- Daily timeframe - I don't need to get rich tomorrow, I prefer trading with less noise. Crypto being volatile as it is on lower timeframes is subject to random pumps and overreactions of the market that easily throw technical indicators off track - that is costly when using leverage.
Nothing new - all 3 indicators firmly point to downward action, and the averages start to align in a pattern suggesting longer downtrend.
No trades taken.
Now I see the problem with this series - 16.01. while i posted all indicators are bearish, before closing of the daily candle one of them managed to flip bullish. This is no big deal, since I would not trust a single indicator going against strong trend, but in the future this might be deceiving. I will try to think how to solve this.
Still - no trades taken.
One of indicators gave up and printed bearish signal, 2 others still stay bullish, but if it goes like this probably not for long. Averages still indicate only a correction in the uptrend, so in theory we should go up, yet I would advise smaller allocation given bearish readings on bigger coins. If anything, as long as general sentiment remains neutral-negative I would look to short BNB when indicators change. I will wait for 1 of the other 2 indicators to turn bearish before shorting.
No trades taken.
Averages still show a firm downtrend and indicators still point to a reversal. I went long around 1.39 so I'm still in the green, just hoping that the price will move enough for my indicators to catch a profitable exit.
LONG trade mantained.
So, 2 days in and a mishap - yesterday I was moving to my new PC and was to occupied with installing and checking stuff to write. Not a good sign but I don't want to give up this easy. Meanwhile market generally was unhappy and slumped lower all across the board (minus few coins that kept strength) and is only recently trying to climb up a bit. Choppy action that is very difficult for technical trading, but also important as a test environment, since it's easy to have confidence in a system when the market has nice, easy to pick up trends.
Have a nice day,