CRYPTO TRADING STRATEGY WITH MEDIAN INDICATOR – Steemit Crypto Academy- Homework post for Professor @abdu.navi03

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1-Explain your understanding with the median indicator.

It is important to guess the future of our market before investing in any market. The price of a product fluctuates depending on the demand and supply of that product at a given time. This is exactly what happens in the crypto market and we see a lot of fluctuations here.

In such cases, we use different types of indicators to understand the next movement of our market. For example volume-based indicator, trend-based indicator,s, etc.

Median is one kind of technical indicator which is known as the trend-based indicator. It is used to determine the trend of our market such as uptrend and downtrend we can easily diagnose through this indicator.

If we notice the chart above we will see two colors of cloud in the median indicator. Generally, the Median indicator display the cloud according to the mean value of low and high over a period of time. The green cloud refers that the market is on an uptrend and it is buying opportunity on the other hand when the purple color crosses the median line below it refers bearish trend.

2-Parameters and Calculations of Median indicator. (Screenshot required)

Let's see the parameters of the Median indicator :

• ATR: The elaboration of ATR is the Average True Range. ATR represents the true range of price over a particular time. By default, we get the 14 lengths when we include it in any chart.
• ATR Multiplier: the value of ATR will be multiplied by the value of ATR. As a result, we get 2 by default settings.
• Median I have said before that median is the mean of price value.
• Upper Band:

3-Uptrend from Median indicator (screenshot required)

I mentioned earlier that this is a trend-based indicator and has a lot in common with EMA. With the help of that indicator, we can determine the trend with the help of the median indicator just like we identify the trend and open the trade accordingly. But one thing to note is that this indicator works very well when the market is trending otherwise we cannot expect the expected results. Two types of colors are used in this indicator to detect trends, one is green and the other is purple color by which we can easily detect bullish and bearish trends. Notice that I have shared a screenshot below to better illustrate the point.

If you look closely at the screenshot above, you will see that I have found uptrend and downtrend here by looking at these two types of colors. When this indicator indicates our green color it is bullish trend i.e. here is our buy opportunity.

4-Downtrend from Median Indicator (screenshot required)

To answer this question we need to describe how to determine the downtrend through Median indicator. In answer to the previous question, I have explained to you how to determine the uptrend through the indicator and here we can open any kind of position.

Trading against trend is very risky and the chances of loss are very high. Here we will determine the downtrend by applying the exact same procedure that we used to determine the uptrend. We know that two types of colors are used in this indicator to determine the uptrend downtrend. Where the green color will appear, that is, we will find the market uptrend in the same way when we see the purple color cloud, there will be a downtrend in the market. Let's see a screenshot where it can be understood very well.

If we take a closer look at the screenshot above, we can see that there is a cloud of green and purple. I have already told you that the green color gives us an uptrend signal. And the cloud of purple color is with our downtrend. I have shown the sell opportunity here.

5-Identifying fake Signals with Median indicator(screenshot required)

A correct signal is a blessing for a trader otherwise a false signal is a curse for a trader. Technical analysis is never one hundred percent accurate but we can reduce the percentage of mistakes by refraining from false signals. So we have to refrain from false signals and enrich accuracy in our training.

We can not only rely on one indicator but also add multiple indicators to a chart to protect against such false signals. I think I can expect better results from this indicator if I use another indicator besides the median indicator. So along with this I will use RSI indicator and use it to determine the false signal.

In the screenshot I have shared with you above, I have added the indicator along with the median indicator to better answer the question. The default setting of RSI indicator has two rans with which we can diagnose overbought and oversold.

6-Open two demo trades, long and short, with the help of a median indicator or combination that includes a median indicator (screenshot required)

Now I am going to share a demo trade with you and through this trade, I want to present to you how we can take buy entry using a median indicator. Before I buy entry I would like to remind you that when we see the green cloud it indicates our uptrend and that is where we will buy entry. Let's see a picture where I have indicated to take buy entry.

Conclusion

Just as it is almost impossible to fight without weapons, it is equally important not to use the technical tools of trading. Through today's lesson, we learned about the Median Indicator in detail and how it can further our trading experience. Using this indicator we can easily determine the uptrend and downtrend and here we mean the bullish and bearish of the market through two different colors. We have learned to protect our trading capital from false signals through the same lessons. All in all, I think it will take our trading experience one step further.

Lastly, I would like to thank the Honorable Professor for giving us such a wonderful lesson.