We discuss how to use Bollinger Bands for automated trading. The key to creating an effective Bollinger Band strategy is finding the right parameters.
A section focused on technical analysis. Any article that looks at charts or talks about how to look at charts can be found here.
Please note we don’t do price targets on this site, we do educational content focused on learning about the basics of technical analysis.
With that in mind you’ll find two types of content here:
- Discussions about the fundamentals of the technicals and resources. Things like “what is technical analysis,” “how to use Trading View,” and “how to use moving averages in crypto.”
- Educational and informational looks at historic, current, and potential crypto charts (sometimes compared to non-crypto charts). So things like “a comparison of 2014 and 2018,” or comparing the tech bubble to the crypto bubble,” or “bulls need to ward off this death cross or it won’t be a good look technically speaking; Let’s take a look at what death crosses mean.”
NOTE: This content is meant to be informational and educational; it is not investing advice. That said, here is some free life advice, as a general rule of thumb don’t make important financial decisions based on information you find on the internet… 🤓
Up until last week or so it was very easy to argue that we started a new bull market, and that it looked like the bottom is in. Now we have a needed correction. This correction will be a good test of the bull.
Bitcoin (BTC) did a classic Bart from May 26th to May 30th. A Bart is a crypto pattern that includes one big green candle and one big red candle of equal magnitude.
The total crypto market cap excluding BTC is actually in a longterm uptrend since 2015, and after a brutal 2018, back in an uptrend in 2019 as well.
We hadn’t had anything that looked like a bull run in crypto until recently, now we have that typical sizable crypto correction (brought on by a quick dump). Will this dip be bought, or will we see 2018 style panic selling?
When GBTC and ETCG trade at a premium to the underlying assets, it is generally a sign that crypto is bullish.
One could argue, based on some factors like Simple moving averages that the BTC-ETH pair is bearish and at the same time the BTC-USD pair is bullish. It is the same for many alts.
The above chart shows Bitcoin 2010 – May 2019. In my opinion the current price action is similar to 2012 and mid-to-late 2015.
A Golden Cross is when the 50 day Simple Moving Average of an asset crosses over the 200 day SMA. A Death Cross is when the 50 day crosses under the 200.
Bitcoin is about to form a Golden Cross as its 50 day Simple Moving Average is set to cross over its 200 day SMA. This pattern does not have to occur, but if it does it would be bullish.