Bitcoin ready to enter the buy zone  based on price+volume indi
2024-12-23
Category: None

 

TL:DR the Bitcoin dip is over based on this indicator that showed buy signals before the big rise, and also gave us a sell signal before the most recent large dip. If this indicator continues to be correct, it seems like the crash is over and we could be waiting for another buy zone very shortly. Below is a more detailed description of the indicator I created which is typically based on simple price and volume action. 

I designed a new indicator that I dub the "Money Flow by NHBprod" indicator. It helps to EASILY identify potential trade opportunities without over complicating the process. In short, MFI typically uses volume and pricing data in its calculations which are 2 important keys to consider when trading. However, the actual indicator typically lags behind actual trade opportunities. I heavily modified the standard MFI so that this new indicator can be used to easily see where to buy and where to sell. It also has built in alerts which can be used to automate trading.

How It Works
The indicator calculates the Money Flow Index (MFI), but is heavily modified both in terms of calculations, performance, and output. The indicator computes the MFI using the closing price and a user-defined length. A linear regression moving average is applied to the MFI, smoothing out fluctuations to provide clear signals. Then we have Buy & Sell Zones which are Customizable thresholds that are used to determine when to buy and when to sell. When the moving average crosses into the buy zone, green highlights appear on the chart; similarly, red highlights appear when it enters the sell zone.

Alerts: Integrated alert conditions notify traders when the moving average enters either zone, ensuring they never miss a trade opportunity.
What It Does

Identifies Opportunities: The indicator visually and dynamically highlights buy and sell zones directly on the pricing chart for easier decision-making.
Sends Alerts: Receive real-time alerts for both buy and sell signals, so you're always in sync with the market.

Simplifies Analysis: By focusing on the MFI's moving average and clearly marking significant zones, the indicator eliminates noise and simplifies market analysis.
Enhanced Visualization: The green and red highlighted zones on the pricing chart offer an intuitive, at-a-glance understanding of market conditions.