Intro: If you've seen the Hyperwave channel on YOUTUBE you're familiar with Consensio, if you have not, the idea is to REMOVE price and just look at Lagging Indicators to determine where price is headed. Let's dive into the 2014 & 2018 comparison:
Method: Using EMAs instead of SMAs in this analysis as these offer less noise.
Color Scheme Pattern for Consensio:
1) Fast Moving Average (FMA) is 2 periods (Lime ascending and Green descending)
2) Intermediate Moving Average (IMA) is 7 periods (Yellow ascending and Orange descending)
3) Slow Moving Average (SMA) is 30 periods (Red ascending and Maroon descending).
Oscillator Explanation: Uses the same moving averages BUT uses the 30 Period SMA as the BAR to determine a bullish or bearish market.
Analysis:
A) Both the FAST MA (FMA) and INTERMEDIATE MA (IMA) dive below the SLOW MA (SMA) and bounce back on top of it briefly. The MA oscillator shows this with the blue BULLISH bar April & May 2018 and June & July 2014.
B) The rejection was followed by another dive in which the FMA NEVER crossed the IMA until it found a bottom in price.
C)The FMA climbed over the IMA briefly in March of 2015 and July of 2018 (our last rally up to 8.4K) after both bear periods found a bottom in price.
D)If we keep moving sideways, we're bound to test the SMA. A failure is expected to grab the momentum to climb back on it for good.
Disclaimer: This is not advice but a cross of the Slow Moving Average and finding support once again at 6K is good confirmation to enter a trade.
Comment & Like: This is a learning community your comments and feedback are appreciated.
Method: Using EMAs instead of SMAs in this analysis as these offer less noise.
Color Scheme Pattern for Consensio:
1) Fast Moving Average (FMA) is 2 periods (Lime ascending and Green descending)
2) Intermediate Moving Average (IMA) is 7 periods (Yellow ascending and Orange descending)
3) Slow Moving Average (SMA) is 30 periods (Red ascending and Maroon descending).
Oscillator Explanation: Uses the same moving averages BUT uses the 30 Period SMA as the BAR to determine a bullish or bearish market.
Analysis:
A) Both the FAST MA (FMA) and INTERMEDIATE MA (IMA) dive below the SLOW MA (SMA) and bounce back on top of it briefly. The MA oscillator shows this with the blue BULLISH bar April & May 2018 and June & July 2014.
B) The rejection was followed by another dive in which the FMA NEVER crossed the IMA until it found a bottom in price.
C)The FMA climbed over the IMA briefly in March of 2015 and July of 2018 (our last rally up to 8.4K) after both bear periods found a bottom in price.
D)If we keep moving sideways, we're bound to test the SMA. A failure is expected to grab the momentum to climb back on it for good.
Disclaimer: This is not advice but a cross of the Slow Moving Average and finding support once again at 6K is good confirmation to enter a trade.
Comment & Like: This is a learning community your comments and feedback are appreciated.
