Ultimate Oscillator Bitcoin Analysis & Ultimate Oscillator Technical Signals
Originally developed and used to trade stocks & commodities markets.
This oscillator aims at striking a balance between leading signals & lagging signals given by the common technical indicators.
- Leading - some indicators lead the btcusd market and give signals earlier than the ideal optimum time
- Lagging - some indicators lag the btcusd market so far that half of the move is over before a signal gets generated.
This is the balance that the oscillator indicator aims to strike, not to lead the market too much or lag too much - this way the oscillator will always give a signal at the ultimate time, thus its title.
This btcusd indicator uses 3 different n-number of candlesticks and calculates the combined weighted sums of bitcoin price action from these candlesticks & plots these values on a scale ranging from 0 to 100. Values of above 70 are regarded and considered to be overbought levels while values of below 30 are considered and regarded to be over-sold levels.
The time periods used to calculate ultimate oscillator trading are 7 periods (short term trend), 14 periods (intermediate term trend) and 28 periods (long-term trend).
Bitcoin Crypto Currency Analysis and Generating Trade Signals
This Bitcoin technical indicator can be used in generating buy and sell trading signals using different methods.
Center line Bitcoin Cross over Trade Signal
Buy Bitcoin Signal - readings above 50 center line level
Sell Bitcoin Signal - values below 50 center-line level
Center line Bitcoin Cross-over Signal
Overbought/Over-sold Levels in Trading Indicator
Over-bought - levels above 70 - sell bitcoin trading signal
Oversold - levels below 30 - buy bitcoin trading signal
Divergence BTCUSD Trading
The oscillator trading can also be used to trade divergence signals, below is an example illustration of a classic bearish divergence signal.
Technical Analysis
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