Average True Range (ATR)

The Average True Range (ATR) is useful in measuring the strength of a trend. For example, if the market's price makes a big move or reversal, either Bullish or Bearish, there will be an increase in volatility which leads the ATR to rise. We can also use ATR to set Stop loss on a trade, to do this normally a number equal to 3 times the ATR number will be added to the high price range on short positions or will be deducted from lower range price in long positions.

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Textbook BARR bottom

A surge in BTC price may happen if the following items confirmed as per the Encyclopedia of Chart Patterns. 1) A massive vertical sell-off while the price is in a downtrend 2) A bottoming pattern 3) A rally past the downtrend line formed in 1) 4) a bounceback to the trendline which leads to a surge higher by far.



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Aroon Oscillator

The Aroon Oscillator is a good indicator to follow the trends. It uses the Aroon Up and Aroon Down from Aroon indicator to calculate the strength of a current trend and the likelihood of its continuation.

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Aroon indicator.

The Aroon indicator has two lines. the Aroon up measures the number of periods since a High, and the Aroon down measures the number of periods since a Low. This is a trend recognition indicator.

The indicator is traditionally applied to 25 periods of data, however, I use different periods on different time frames. The smaller the period the noisier the indicator gets.

When the Aroon Up is above the Aroon Down, it indicates bullish price behaviour. When Aroon Up crosses above Aroon Down it means a new uptrend is starting. (This is not true 100% of the times as you will get many false signals at top of the good ones.

When the Aroon Down is above the Aroon Up, it signals bearish price behaviour.

Happy trading!

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Alligator Indicator

Alligator indicator was introduced by Bill Williams. Its components are three lines, drawn on a pricing chart, which represent the jaw, the teeth and the lips of the alligator, it is good for trend recognition and trading signals. I sometimes use it to recognise the wave formations. When the three lines are close to each other, then the Alligator’s mouth is closed and she is sleeping. When the trend takes shape, the gap between the lines get bigger and the Alligator wakes up and starts eating profits.

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