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Home Blog Gate.io AMA - Livestream, indicators review and analysis | MA, MACD, BOLL | Oct.7th

11:24

09 October

Gate.io AMA - Livestream, indicators review and analysis | MA, MACD, BOLL | Oct.7th

Firstly, let's review the basic knowledge of MA, MACD and BOLL.

MA

1.A Moving Average (MA) is a calculation that takes the arithmetic mean of a given set of prices over the specific number of days in the past; in GATE.IO, we can change the days.

2.Click setting and the below box pop out, change the number in "Length" for different time frame, 9, 15, 20, 50, 60, 200...



3.Moving Averages(MA) is a totally customizable indicator, which means that an investor can freely choose whatever time frame they want when calculating an average.

The most common time periods used in Moving Average are 9, 15, 20, 30, 50, 100, and 200 days.


The shorter the time span used to create the average, the more sensitive it will be to price changes.


The longer the time span, the less sensitive the average will be.


4.Shorter the time span, the line will be loser to K lines, creating a lot of CROSS. To traders, there are a lot more entries to place the orders.

5.Please see below the blue line going through the K patterns. The arrows show out Uptrend or Downtrend.

1)At the left side of above picture, MA line crosses K line but above it, shows the signal of downtrend. At this moment, usually to SELL(Short).


2)At the right side, MA line crosses K line but below it, shows the signal of uptrend. At this moment, usually to BUY(Long).


MACD

1.Usually MA and MACD can be one pair.

1)MA, is showing the price position according to the calculation of the period data.


2)MACD, is showing the power of trends strengthening or weakening.


2.Moving average convergence divergence (MACD) is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. Shorter period line, we call it signal line.

1)MACD triggers technical signals when it crosses above (to buy) or below (to sell) its signal line.


2)MACD helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening.


3.The colors of MACD

1)Red bar, from traditional meaning, shows the power of BUY.


2)Green bar, shows the power of SELL.


3)There's a ZERO line, when the MACD line crosses from below to above the signal line, the indicator is considered bullish.


The further below the zero line the stronger the signal. When the MACD line crosses from above to below the signal line, the indicator is considered bearish.


The further above the zero line the stronger the signal.

4.Where to select MACD

Please go to Perpetual Contract trading page, and you will see MACD is below the K pattern.


Click “MACD” and the bar shape will appeared as arrowed position.


BOLL

1.Bollinger Bands®, determining overbought and oversold levels, as a trend following tool, and for monitoring for breakouts.

2.Key Takeaways:

1)Bollinger Bands® are a trading tool used to determine entry and exit points for a trade.


2)The bands are often used to determine overbought and oversold conditions.


3)Bollinger Bands® are a rather simple trading tool, and are incredibly popular with both professional and at-home traders.

3.When stock prices continually touch the upper Bollinger Band, the prices are thought to be overbought; conversely, when they continually touch the lower band, prices are thought to be oversold, triggering a buy signal.

You can see it from below picture.




4.5 shapes of BOLL

1)Top band, bottom band central line are paralell horizontally, shows the price is fluctuating between the top and bottom. No big change.




2)Top band, bottom band central line are paralell but upwards, shows the price is uprising.




3)Top band, bottom band central line are paralell but downwards, shows the price is uprising.




4)The squeeze shape occurs when the price has been moving aggressively then starts moving sideways in a tight consolidation. After the squeeze, the price often makes a larger move in either direction, ideally on high volume.




5)Pocket opening, the top band is uprising while bottom band is down dropping, it makes a Pocket Opening, means the price will go upper.


From below picture, there's the squeeze, after this, it created a pocket opening.




Realtime analysis.


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