We are now testing an indicator built using the ideas of John Bollinger and Welles Wilder. It displays support and resistance zones from the simple moving average (SMA), adapting to the current volatility. Gives three levels at the top and bottom.
There are similar indicators, but ours perhaps provides greater flexibility and adaptation to market conditions than at least some of them. We will test strategies and share the results.
In the history of the BTC and ETH chart, on the daily timeframe, you can see how well these lines work as supports and resistances. And it is clear that in today’s dump the prices of both#BTCand#ETHhave reached the extreme supports of the channels. Many altcoins, by the way, have fallen out of these channels slightly today, but are trying to return back.
The point, in fact, is that from today’s level for BTC and ETH, you can expect rebounds without updating the level in the coming days. As was the case with BTC on June 24, where from the test of the third oversold line, the price rebounded to the median line by +9% by July 1.
Although with the current manipulations on FUD around Mt.Gox, there are no guarantees yet, but there is a chance.
