How Do You Know A 175% Price Pump Is Coming, 1 hour In Advance
By Mohammed Shakil on ALTCOIN MAGAZINE
Yesterday FUEL/BTC price jump almost 175% in 6 hours before dumping down a bit. In this brief post, I am trying to share with you my insight that could have given us hint that this pump was in the making 1 hour in advance.
As sudden and shock as it may seem there is always a build-up stage before such a spike happens. Let's try to make sense of how this pump could have been predicted 1 hour in advance.
Core objective:
Find a rare pattern which superceeds the price increase at least by an Hour
We will be breaking down the time frame from 1 day shown above to 1Hour and introduce indicators such as EMA and Volume to help us make sense from the chaos as shown below.
We will plot 2 EMA with close and open as a source respectively and color them green and red. And also track the Volume gain hour by hour.
EMA means Exponential Moving Average and when EMA of close crosses above EMA of open for 20 candle length it means that the average close price is greater than the average open price over the previous 20 candle price. This is a bullish indicator as it evens out the price gain over a length and reduces noise in price action.
There is 1 clear abnormality, that’s the Volume Jump. It went from 4.12 million to 109 million FUEL traded in One Hour !!!
That's 2600% Volume Jump in 60 minutes.
It's clearly shown that the volume is almost jumped almost 9 times in 10-hour average in 1 Hour.
The likelihood of Volume increase and EMA close crossing over EMA open to happen at the same type is an occurrence often get ignored as there is no way to find them as they happen too fast.
There Was Also 1-Hour Spare Time To Enter The Trade After The EMA Crossover And Volume Pump.
The question is how could you have known about it in time.
This kind of opportunity happens once every few days in crypto land but the question is how would you track all coins in an exchange every hour for volume increase and EMA crossovers.
We at Tradeplan are work on a simple mobile app where you can set your own conditions such as in this case its
“If hourly [volume jumps more than 2000%] and hourly [EMA(Close) is above EMA(open)] and get an alert when it finds the next FUELBTC.
Leave a comment with your thoughts and if there is any price increase that you would like me the reverse engineer for you.
Please do clap if you liked the post and it motivates me to write more such post. Feedback are welcomed.
