BTC: the Log Growth Curve and the MACD on Various Time Frames

4 thg 1, 2020

The main principle of the MACD, a momentum indicator, is it will also want to revert to the mean, which in its case is the zero line. As expected, the MACD line, the average of a shorter and longer term moving average, is coming back to the zero line after a too explosive spike to the upside. For the past few weeks, however, the histogram has been contracting signaling the MACD is slowly turning around. With momentum/ the MACD re-setting to the zero line, the indicator is signaling a continuation of the next cycle up - yes, continuation as the bottom has been in for a year now with the previous spike down into the 3K range.

But wait, some will say, looking at the MACD indicator, what's to stop the MACD /and price/ collapsing to new lows as it did late last year? And a fair enough question when looking at the weekly MACD alone.

But then indicators should never be looked at in complete isolation. It helps to 'triangulate' them with other indicators.... or even the same indictor in different time frames. This following appendages will explore this second approach.

5 thg 1, 2020

Ghi chú