graham.edwards84

BTCUSD DEMA analysis vs SMA analysis

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
My findings indicate that while the DEMA can be an early indicator of a bullish cross it is not accurate. On the left in the DEMA chart, the green circle showed the 50 DEMA crossing up through the 20 DEMA caused a spike in price point... which is just weird because it should have gone the other way because it is actually the 20 moving down through the 50... and in the second green circle when the 50 DEMA moved up through the 200 DEMA it actually coincided with a stop in the rally spike which is also undesirable.

On the right side chart using Simple Moving Averages (SMAs) you can see that the 20 SMA moving up through the 50 SMA caused a very predictable spike and not only that but the 200 SMA also provided a reasonably accurate target point to exit. In addition, as you can see form these two charts, the SMA chart side shows much better support resistance correlation on all of the averages with the price point.

Conclusion... So I'm not seeing any advantage to using DEMAs at this point over SMAs but perhaps on a different time scale chart there may be better results so I will research this a little longer.

Comment:

notes if you click on the chart
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out