I use DEMA and Price difference in many strategies and and trade.
Finally , ı wanted to build an indicator for relation between them.
It calculates the percentage of difference between price and dema and estimates deviation from the main trend.
Formula = (price-dema)/price*100
There is some parameters;
DEMA Length is length of dema , ı think...
İf GREEN > YELLOW > RED > BLACK
If BLACK > RED > YELLOW > GREEN
In upward trend , if green(fastest ema) crossunder YELLOW or RED or both of them , you can close the position . Dont wait the Downward Trend.
Lengths of EMAs are based on Fibonacci numbers ( 8,13,21,34) , if you want, you can...
Works well on 4h charts, ETHUSD,BTCUSD,and XRPUSD but can be tested also on other crypto's.
On those pairs no need of sofisticate scripts to trade.
Can add a trailing stop, but as you see works perfect as it is.
KISS (Keep It Simple Stupid).
Buy in Red, Sell in Lower Red
UPTREND = IF the bar stays in the red
DOWNTREND = If the bars Stays in the lower Red
Price will come on green in long term.
use for day trades, long trades not recommended !
Dear Crypto Community,
I set for my thesis a crypto indicator for 15 minutes mostly. It's work at 87 % on BTCUSD & BCH
easy to use:
Green to Short
Purpule to Buy
If you are happy or you 'r making money let me know : firstname.lastname@example.org