anedjai

4-9-18 SMA on the weekly BTCUSD

anedjai Updated   
BITFINEX:BTCUSD   Bitcoin
Interesting to see how the 4-9-18 simple-moving-averages react when shown on the weekly chart of BTCUSD. Theory states that when the 4 crosses the 9, it gives an alert, and we must thus wait for the 9 to cross the 18 to confirm the buy or sell signal. We can see that this has worked pretty well in the past. In regards to the downtrend we have been witnessing since January however, we notice how this rule would have led us to miss most of the downtrend if we had to wait for the 9 to cross below the 18 to short - however better be safe than sorry I guess. This could have been used in line with other RSI and OBV indicators to may be catch it before. On the other hand, notice how we have seen the 4 cross above the 18 and we merely need to wait for the 9 to do the same, which looks like it's about to, in order to confirm a buy signal.
Comment:
I should edit the above to confirm that the 4 has crossed above the 9 but not above the 18 yet, we would have to wait for it to cross above the 18 and for the 9 to then cross above the 18 to confirm a bullish trend. This is of course lagging, but interesting to see nonetheless on a weekly cart as I have not seen that many use the combination of 4-9-18 SMA. Usually it is the 50-100-200 on the SMA or EMA.

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