Crypto volatility is the main attribute that attracts a lot of traders to Crypto markets.
A few days back LINK/ETH pumped up a 50% positive price change in just 85 minutes. Here is a try to look at a way to see if it was possible to screen and find in advance.
The following indicator is used.
Indicator used: EMA(20,close), EMA(20,Open),Volume, MACD( 12,26,9,close)
The chart candlestick time frame is 5 minutes.
The observation using the indicator are as follows:
- EMA(close) above EMA(open),both for 20 candle time frame.EMA crossover and rising trend help to understand the momentum direction which is upwards in this case
- MACD (12,26,9) crossover and increasing.MACD crossover and rising shows confirmation of the trend.
- Volume jumped 19.3 times in 5 minutes from 4.4K to 84.951K. Volume increase signifies an increase in momentum and market pace.
Now looking at the chart from a zoomed-out perspective in the following 4 H candle chart as shown below.
The price jumped around 60% the breakout this means the user could have used price break out to confirm the increase in price.
I hope you enjoyed the brief break down of the 50% gain in 85 minutes post-analysis. Do clap the post if like it and follow us at twitter @tradeplanio
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In practically impossible to monitor 100’s of the chart for the various time frames but knowing what to look for can save time and effort for many.
Tradeplan is a crypto screener that aims to help a trader find the set up they are looking for at the right time.
You can read about how Tradeplan can help you https://medium.com/@shakks/tradeplan-crypto-scanner-582af822325a
I hope you enjoyed the post.
