Our Core Crypto Trading Strategies

Relative Strength Index (RSI)

The **Relative Strength Index (RSI)** is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and 100.

Traditionally, RSI is used to identify **overbought and oversold conditions** in the market:

• Overbought: When RSI is above 70, it suggests the asset may be overvalued and due for a price correction.
• Oversold: When RSI is below 30, it suggests the asset may be undervalued and due for a price bounce.

We leverage RSI not just for these basic signals but also in combination with other indicators to confirm trend strength and potential reversals, particularly when divergence occurs between price and RSI movement.

Moving Average Convergence Divergence (MACD)

The **Moving Average Convergence Divergence (MACD)** is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. It's composed of three main components:

• MACD Line: The difference between the 12-period EMA and the 26-period EMA.
• Signal Line: A 9-period EMA of the MACD Line, which acts as a trigger for buy and sell signals.
• Histogram: Represents the difference between the MACD Line and the Signal Line.

MACD helps us identify **momentum shifts, potential trend changes, and entry/exit points** based on:

• Crossovers: When the MACD line crosses above the Signal Line, it's often a bullish signal; below is bearish.
• Divergence: When price makes a new high/low but MACD doesn't, indicating weakening momentum.

Squeeze Momentum Indicator

The **Squeeze Momentum Indicator** (often associated with John Carter's TTM Squeeze) is designed to identify periods when price volatility has contracted (the "squeeze") and is likely to expand, indicating a potential strong move. It combines Bollinger Bands and Keltner Channels to detect these periods.

Key components and what we look for:

• The "Squeeze": Occurs when the Bollinger Bands move inside the Keltner Channels, indicating low volatility and accumulation. This is often followed by a strong directional move.
• Momentum Histogram: Shows the direction and strength of momentum. Green bars indicate upward momentum, red bars indicate downward momentum. Lighter shades can indicate fading momentum.

This indicator is crucial for spotting **imminent breakouts** from periods of consolidation, allowing us to position for significant price action.

Other Integrated Analysis

Beyond these core indicators, our strategies incorporate a broader range of analytical techniques to refine signal generation and manage risk. We don't rely on a single indicator but rather a confluence of multiple factors to increase the probability of success.

• Volume Analysis: Confirming price moves with significant volume.
• Support & Resistance Levels: Identifying key price areas where buying or selling pressure is expected.
• Multi-Timeframe Analysis: Confirming trends and signals across different timeframes for higher conviction.
• Market Structure & Price Action: Understanding the underlying behavior of buyers and sellers.

This holistic approach allows us to generate more robust signals and adapt to various market conditions.