The Ehlers Gaussian Filter is essentially an exponential moving average (EMA) applied multiple times. It uses the concept of Gaussian smoothing, where the filter weights are based on a Gaussian distribution. This was then converted into a channel by @DonovanWall, thanks to him.
In this trade, we have identified a Gaussian channel breakout on the 1-day Bitcoin chart. This breakout occurs when the price of Bitcoin closes above the top side of the Gaussian channel, indicating a potential upward movement in the price.
Based on historical data and analysis, there is a 92% probability of a 10% move in the price of Bitcoin after the breakout. This means that there is a high likelihood of a significant price increase following the breakout.
Furthermore, after the initial 10% move, there is a 92% probability of a 20% move in the price. This makes the combined probability of a 20% move being 84.64% This suggests that if the price of Bitcoin continues to rise after the initial breakout, there is a strong chance of further gains.
However, it is important to note that most setups similar to this one tend to end at around the 20% mark. This means that while there is potential for even greater gains, it is common for the price to reach a peak and experience a reversal or consolidation around the 20% mark.
Averages & Std Deviation:
Average Move: 21.93%
Std Deviation: 9.51%
Average Days to Peak: 15.42 days
Std Deviation: 8.24
Disclaimer: This trade setup description is for informational purposes only and should not be considered as financial advice. Trading cryptocurrencies involves risk, and individuals should conduct their own research and consult with a professional financial advisor before making any investment decisions.
In this trade, we have identified a Gaussian channel breakout on the 1-day Bitcoin chart. This breakout occurs when the price of Bitcoin closes above the top side of the Gaussian channel, indicating a potential upward movement in the price.
Based on historical data and analysis, there is a 92% probability of a 10% move in the price of Bitcoin after the breakout. This means that there is a high likelihood of a significant price increase following the breakout.
Furthermore, after the initial 10% move, there is a 92% probability of a 20% move in the price. This makes the combined probability of a 20% move being 84.64% This suggests that if the price of Bitcoin continues to rise after the initial breakout, there is a strong chance of further gains.
However, it is important to note that most setups similar to this one tend to end at around the 20% mark. This means that while there is potential for even greater gains, it is common for the price to reach a peak and experience a reversal or consolidation around the 20% mark.
Averages & Std Deviation:
Average Move: 21.93%
Std Deviation: 9.51%
Average Days to Peak: 15.42 days
Std Deviation: 8.24
Disclaimer: This trade setup description is for informational purposes only and should not be considered as financial advice. Trading cryptocurrencies involves risk, and individuals should conduct their own research and consult with a professional financial advisor before making any investment decisions.