FAQs Frequently Asked Questions
Crypto Report
What chart intervals do you find most helpful for crypto currency investing?
Q: What chart intervals do you find most helpful for crypto currency investing? What intervals have given you the most success? How do you feel about four-hour charts while using 40, 80, and 200-hour moving averages to create tradable gauges?
A: With cryptocurrencies, their volatility of the best performers is orders of magnitude greater than your typical stock so it is important to use an exponential price y-axis. In a bull market, the best ones can move 10x to 100x in price.
Intervals depend on the context of the situation. I use monthly charts to gain a 50,000 foot view. I use daily charts for regular chart analysis to compare RS between coins and crypto groups. I use weeklies to gain a longer term perspective. I use 5-min charts to fine tune entries and exits and placement of price alerts.
As for moving averages, I tend to only use them as a rough guide. They tend to work better for bitcoin but less so for the alt coins. It is more instructive to see where bitcoin and ethereum are heading using moving averages as one of several indicators than to apply them to other alt coins.
A: With cryptocurrencies, their volatility of the best performers is orders of magnitude greater than your typical stock so it is important to use an exponential price y-axis. In a bull market, the best ones can move 10x to 100x in price.
Intervals depend on the context of the situation. I use monthly charts to gain a 50,000 foot view. I use daily charts for regular chart analysis to compare RS between coins and crypto groups. I use weeklies to gain a longer term perspective. I use 5-min charts to fine tune entries and exits and placement of price alerts.
As for moving averages, I tend to only use them as a rough guide. They tend to work better for bitcoin but less so for the alt coins. It is more instructive to see where bitcoin and ethereum are heading using moving averages as one of several indicators than to apply them to other alt coins.
First published: | 10 Sep 2020 |
Last updated: | 10 Sep 2020 |