theheirophant
Long

Example signals from Crypto-Sticks Momentum

BITMEX:ADAZ18   None
Our last update for today, in the Crypto-Sticks series. More to come soon!

Here's an example of how to use the Crypto-Sticks Momentum for trading signals. I also plotted this range's signals the indicator would've generated.

Momentum can be a tricky indicator sometimes. Since it doesnt go into predictable overbought or oversold zones, it rather just oscillates around zero - making it harder to create a signals strategy. On the default view I tend to look for 2 candle "flat tops" and "flat bottoms" with one or both containing a decent wick.

Heiken Ashi candles adds some more clear entry exit points which can be executed at the second candle going in either direction (applicable only to this chart on 4H - other coins/charts will require their own strategy). For instance, enter on 2nd green, exit on 2nd red. The heiken candles seem to give longer term trades which I like... hate overtrading!

Volume weighting the HA candles adds a different dimension to the indicator which I have to explore more fully.

If using either HA or VW+HA, the strategy about "flat candles" doesnt apply anymore. Please leave me any ideas or feedback you have!

The signal was to go long at 1130 with a target of 1250 on the upside at the first resistance area . Stoploss at 1075.

Here's how it looks as Heiken Ashi:
And Volume Weighted Heiken Ashi:
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