Great analysis. Could you provide a little bit on why you use the SMA 20 and the EMA 10 as key references instead of another EMA for the slightly longer term average?
Great analysis. Could you provide a little bit on why you use the SMA 20 and the EMA 10 as key references instead of another EMA for the slightly longer term average?
SMA20 & EMA10 are commonly used and followed by traders.
Well, as I've observed the next reference would be EMA 30 followed by EMA50 and SMA50.
Volatility in cryptocurrencies is high so I prefer 50 (with tolerance of 5%) as the maximum period.
Thanks for the prompt answer. And very true regarding volatility. I had been using larger time frames initially until I realized they were practically useless. Do you look at RSI levels as well as part of your trading strategy ?
Normally I used RSI with stock trading.
In Polo, RSI not available, so MACD is enough.
By the way, when I'm scalping crypto. I used Candlesticks: 5-min 15-min and
Zoom: 6h 24h 2d
On Bitfinex and GDAX I've found RSI has been great for identifying oversold bounces in conjunction with 5 min candle sticks. Works like a charm majority of the time. Though I'm not nearly as dextrous as I should be buying in and selling out. Fat thumbs :-P
but you cannot use RSI (Bitfinex) if you are trading in Polo. Bitfinex is using tradingview charting tool. It's my fav one.