Bill William’s 3 Lines Indicator and SMAs:
As the price action has bounced from the support of the channel and also likely to bounce from the exponential moving averages as well. However here I have used the Bill William’s 3 lines that is also called Bill William’s indicator as stop loss. This is a very powerful indicator to identify and catch the and trends. I normally suggest not to not to sell the asset or not to take exit unless the price action breaks down these three lines. This indicator contains three moving averages the smallest one is the 5 the other one is 8 and the biggest moving average is 13. The smallest is called lips the middle moving average is called teeth and the biggest time period moving average is called jaw.
Whenever the smallest moving average moves above all the other moving averages and teeth moves to the center and the jaw moves below all other moving averages then it is called an opened mouth that is a single. And whenever smallest moving average moves down below all the other moving averages and the biggest moving average moves above all moving averages then it is called that the mouth is closed and that is a signal.
At this time the lines are moving sideways and the price action is also moving sideways with these three lines, however, there is possibility that sometime these three lines give you the false signal. Because these lines are very fast moving averages with the time period of 5,8 and 13. Therefore I suggest to not use this indicator alone, always use this indicator with the combination of some other indicators. For example here I have used the simple moving averages with the time period of 25,50,100 and 200. And whenever the priceline cross down the bill William lines and the mouth gets closed then we should see that whether the price action has broken down the support of the simple moving averages of 25, 50, 100 and 200. I yes then we can take exit from the trade as stop loss. If any of the moving average is saved and not broken then we should wait for the price fine to take bounce from the moving average or otherwise we should consider that the stop loss is triggered.
On the it can be easily seen that we have received such false signal from 11th May to 15th May 2020 when the price action broke down all 3 Bill William lines and mouth was closed. But if we watch the simple moving averages with the bigger time period on the other chart then the price action was having very strong support of 200 . Therefore price action bounced from this and started next move.
Bill William Indicator:
Simple moving averages:
This big can lead the priceline to achieve the highest price:
now I would like to recall the very big move that is formed by the price action of Zcash on the monthly chart. I have already shared this pattern in my previous articles as well. At this time ZEC is entered in the potential reversal zone of this pattern and I am expecting that once the price action will cross up the 0.786 of A to D leg then it can lead the priceline of Zcash to achieve the highest price ever in the history of ZEC.
So far the price action of Zcash is giving no clear signals to break out or break down however untill it has strong support of the moving averages it can make more upward moved.