Now I will caution you right off the bat that it's experimental, and you WILL need candle confirmation. It's more useful at higher time frames, as the shorter time frames can get choppy (as usual with bitcoin ). BUT, it does reveal some interesting trends.
So the premise is that price trends on a number of different things, especially it seems to really correlate with open and close prices. The smoothing helps alleviate chop a bit, but keep in mind, that if it's too smoothed, it can also miss an impending change of trend. Thus why it's useful at higher time frames, and once a candle has been confirmed.
I've noticed that once the open (red line) has crossed over and confirmed the candle above close (blue), it sets into motion a ... And that the closer those lines are to high and low, the stronger that trend tends to be. The opposite is the case for reversals, where the blue line crosses over the red line.
Another key note is the "spike" signature on the top and bottom white lines which represent highs and lows (respectively). A big spike up top, means reversal, and a spike from the bottom means reversal (with the red and blue lines crossing confirming the theory) The greater of the velocity of those blue and red lines crossing, the stronger the trend.
Which brings me to my next point.
Blue and red are still (at this point) very open, and very much hugging the high and low white lines, usually meaning a stronger trend consistency.
I will be making the indicator for public use, I am only asking for a donation if you find it useful with your current strategy, or want to donate for the time spent trying to get new indicators out to the public. I will have more coming, and your donations help with the time spent on any projects.
I am also open for any new ideas for indicators that you would like to see made, and can ALSO custom make indicators for your needs specifically.
As far as what I'm expecting price wise, there is a pretty good chance that we do go down to 8400-8300 price levels before I expect any more signs of strength to be honest. There is a possibility of heading back to 9k from here and then dropping back down, but frankly price is still very sluggish here and it's having a really hard time breaking out above 8800 so far, added to the fact that is still pretty weak, my OHCL smoothed indicator is showing a pretty strong decline on the daily. I'm not liking us staying in this price range for too long. Some consolidation will happen here of cource, but I'm not expecting a long stretch of it.
Look for a bounce somewhere near the red below us.
I will be adding the OHLC SMOOTHED indicator here shortly!
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But I do urge you to not drive 88mph as you will definitely get ticketed in most states for driving that fast! :D
But I do agree with you on the violent selloff though. It will make that drop from 10k to 8k seem like nothing...