Momentum Bitcoin Analysis and Momentum Signals
The Moving Average Envelope indicator creates 2 lines around the bitcoin price forming a channel. The upper and lower channel lines are plotted at an equidistant level above & below the MA. The distance to draw the Moving Average envelopes is calculated using a % or a number of pips.
Moving Average Envelope
BTCUSD Analysis and Generating Signals
Moving Average Envelope can be traded using several different rules. Main technique of generating bitcoin signals is to use the bitcoin price penetrating the upper channel or lower channel.
Bullish Signal
Bitcoin Price penetrating the upper channel is a long buy bitcoin trade signal.
Buy Signal
Bearish Signal
Bitcoin Price penetrating the lower channel is a short sell bitcoin trade signal.
Sell Trading Signal
In a trending market the Moving Average points upwards in an up bitcoin trend market or downwards in a down btcusd trending market. It is good to use the envelopes together with other indicators like bitcoin trendlines so that to confirm the trade signals generated.
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