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Showing posts with the label trend channel

Crypto Market Barometer released on advance-decline.net

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  Crypto Market Barometer released Today I published my simple but easy-to-read Crypto Market Barometer on our website https://www.advance-decline.net. Click here to get to the new Crypto Market Barometer. This is how the main chart looks like: What's behind the new Crypto Market Barometer We believe that one simple but effective method of gauging the health of a market is to look at how many of the most important individual assets trade above their important SMAs. Since SMAs are a proven way of determining the current trend, a market must be in an uptrend, if more than 50% of its biggest assets trade above their long-term SMAs. If they trade below their long-term SMAs, they must be in a downtrend. For the crypto market, I decided to check the popular BitPanda Crypto Index BCI10. It contains the 10 biggest crypto currencies by market capitalization, and frankly, by only looking at BitCoin, Ethereum, Polkadot and maybe Binance, we already have most of the market covered (again, in

Dow Jones somewhat in the middle of nowhere

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Dow Jones somewhat in the middle of nowhere   Technical chart (1h) of the Dow Jones index Source: tradingview.com  The Dow Jones remains on a high level in a sideways phase for roughly 10 consecutive days. The SMA 20 (orange line) works as a stabilizer for now, although we've seen a dip beneath this line during the day. The Dow Jones also moves within a trend channel  (see image above). Right in the middle of this channel another trendline emerged, at apparently the SMA20 and this "middle trendline" come close today. So for now, this area seems to be a strong support.    You know that I am a big fan of the Envelopes indicator, since it is a very simple way to find out if an index is overheated or not. I've added a very simple version of the Envelopes to the chart above. As you can see, it confirms that the Dow Jones seems to be in the middle of nowhere because the price dances around the middle of the Envelopes as well (and the middle is the SMA 20 line). The red line