Bitcoin Cycle Top/Bottom Signal

그저께Bitcoin Cycle Top/Bottom Signal

Overview:

The Bitcoin Cycle Top/Bottom Signal is designed to help traders identify potential cycle tops and bottoms in Bitcoin. It focuses on the necessary moving averages only, ensuring a clean and efficient method to identify key cycle turning points.

How It Works:

The indicator combines three core elements:

- 111-Day Simple Moving Average (SMA1): A reflection of short-term price movements in Bitcoin.
- 350-Day Simple Moving Average multiplied by 2 (SMA2): A longer-term trend indicator, useful for detecting market tops.
- 350-Day Simple Moving Average divided by 2.414 (Fibonacci SMA): Helps identify market bottoms by applying Fibonacci principles to Bitcoin’s historical price data.

Signals:

- Sell Signal: Triggered when the 111-day SMA crosses above the 350-day SMA x2, suggesting the market may be approaching a top.
- Buy Signal: Generated when the daily low price crosses below the 350-day SMA ÷ 2.414, indicating a potential bottom in the market.

This indicator stands out because it provides clear buy and sell signals, something that has been missing from other cycle indicators, + it is very simple, using only the needed DMA's.

Chart Requirements:

This indicator is specifically designed for the Daily timeframe (1D), since it works only there to identify the top.

Settings:

- SMA 1 Length: Adjust the period for SMA1 (default: 111).
- SMA 2 Length: Set the period for SMA2 (default: 350).
- Multiplier for SMA 2: Fine-tune the multiplier for SMA2 (default: 2.0).
- Fibonacci SMA Divisor: Adjust the divisor for the Fibonacci SMA (default: 2.414).

Important Considerations:

This indicator focuses on identifying Bitcoin cycle tops and bottoms, making it a valuable tool for long-term traders. However, it does not account for sudden, unpredictable events such as market crashes caused by external factors (e.g., Black Swan events).

Usage:

Traders should use this indicator as part of a comprehensive strategy, combining it with other tools and analysis methods. The clear buy and sell signals can help identify key points in the Bitcoin cycle, but proper risk management is always essential.

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