Hello.
I thought it would be a good idea to comment on one good indicator.
This is SQZMOM by LazyBear.
It is one of a class of volatility indicators.
It has two indicative messages.
1. Crosses.
Black crosses indicate price contraction. Price contraction signals that the movement can no longer be continued in the direction of the previous momentum.
Gray crosses mean expansion of the market, respectively, the realization of the potential in the direction of the current momentum.
2. Momentum bars.
Green ones show upward movement.
Red ones - downward movement.
Now let's look at the difference of situations 1 and 2, first of all through the difference of indication 1 (Crosses).
No black crosses have appeared on situation 1. The price is breaking out of the channel and further market expansion is taking place.
Situation two also has a channel, but we already see 4 consecutive black crosses and a lowering of indicator bars.
It is also a divergence at the same time.
As with any other indicator, you will monitor whether the bar has reached the maximum zone (90 on average).
Situation 1 has not reached, but there are black crosses.
Situation 2 has reached ~90 zone.
The optimal entry point (in theory) is the first black cross and the down or up bar at the same time.
If momentum falls, it's short. If it rises, it's long.
However, practice shows that it is not enough, and we have to hedge with other signs. In this case the reliability increases.
Now you can predict the candle's exit from channel 2.
I thought it would be a good idea to comment on one good indicator.
This is SQZMOM by LazyBear.
It is one of a class of volatility indicators.
It has two indicative messages.
1. Crosses.
Black crosses indicate price contraction. Price contraction signals that the movement can no longer be continued in the direction of the previous momentum.
Gray crosses mean expansion of the market, respectively, the realization of the potential in the direction of the current momentum.
2. Momentum bars.
Green ones show upward movement.
Red ones - downward movement.
Now let's look at the difference of situations 1 and 2, first of all through the difference of indication 1 (Crosses).
No black crosses have appeared on situation 1. The price is breaking out of the channel and further market expansion is taking place.
Situation two also has a channel, but we already see 4 consecutive black crosses and a lowering of indicator bars.
It is also a divergence at the same time.
As with any other indicator, you will monitor whether the bar has reached the maximum zone (90 on average).
Situation 1 has not reached, but there are black crosses.
Situation 2 has reached ~90 zone.
The optimal entry point (in theory) is the first black cross and the down or up bar at the same time.
If momentum falls, it's short. If it rises, it's long.
However, practice shows that it is not enough, and we have to hedge with other signs. In this case the reliability increases.
Now you can predict the candle's exit from channel 2.
Comment:
And as with many indicators (but not all), a signal on a higher timeframe is more valid.
Comment:
I once opuliated a complex idea with 4 indicators but administrators delete those idea. Because it explained the relationship of some indicators. And this was already looking like confusion.
Meanwhile, I only described the ideal situation for 1 indicator here and indicated that I was using double-checking.
And here's a volume flow indicator. It still hasn't shown the red dot, so the move continues upwards.
In a real trade I would not make a conclusion on SQZMOM alone.
Meanwhile, I only described the ideal situation for 1 indicator here and indicated that I was using double-checking.
And here's a volume flow indicator. It still hasn't shown the red dot, so the move continues upwards.
In a real trade I would not make a conclusion on SQZMOM alone.
Comment:
So, the price has broken through the lower boundary of the channel.
I hope SQZMOM will help you.
Like it and use it.
Profits!
I hope SQZMOM will help you.
Like it and use it.
Profits!
Comment:
The subject of my personal research is the divergence of indicator readings on average timeframes and determining the methodology for prioritising signals. If you know what I mean.
Comment:
Let's try to draw a conclusion by
three indicative attributes.
1. Rejection from level. A bearish sign.
2. EMA50 crossing EMA100 from below upwards - seemingly a bullish sign.
3. SQZMOM is start going down.
Volatility is required to go higher is it really bullish run, so even the presence of the cross at EMA50/100 may not play a role (in fact, it most likely will not). So, as you can see, SQZMOM helps to determine exactly what kind of picture we are looking at.
three indicative attributes.
1. Rejection from level. A bearish sign.
2. EMA50 crossing EMA100 from below upwards - seemingly a bullish sign.
3. SQZMOM is start going down.
Volatility is required to go higher is it really bullish run, so even the presence of the cross at EMA50/100 may not play a role (in fact, it most likely will not). So, as you can see, SQZMOM helps to determine exactly what kind of picture we are looking at.
Comment:
Another Lesson.
SQZMOM + Ichimoku Clouds.
ETH/USDT 1D chart.
We have the first black cross on the daily chart.
And the descending bars.
On where level it can correct locally (not the final target)?
Kijun-sen (base line, red color).
If the trend is really up, I don't see why this line wouldn't act as support and price bounce up from it...
But...
The black ellipse highlights the void area between the clouds.
That's always the case with a rally...
Except there's a subtlety.
In a bull market, the price may rally upwards without filling the void and making a retest...
Except we are not in a bull market yet.
There is a saying, nature abhors a void.
The only intrigue is whether there will still be rising green bars and grey crosses, or are we going down into the red area?
Keep an eye on this one.
Another Lesson.
SQZMOM + Ichimoku Clouds.
ETH/USDT 1D chart.
We have the first black cross on the daily chart.
And the descending bars.
On where level it can correct locally (not the final target)?
Kijun-sen (base line, red color).
If the trend is really up, I don't see why this line wouldn't act as support and price bounce up from it...
But...
The black ellipse highlights the void area between the clouds.
That's always the case with a rally...
Except there's a subtlety.
In a bull market, the price may rally upwards without filling the void and making a retest...
Except we are not in a bull market yet.
There is a saying, nature abhors a void.
The only intrigue is whether there will still be rising green bars and grey crosses, or are we going down into the red area?
Keep an eye on this one.
Comment: