TonyTheBullSeverino
Chartered Market Technician. Cycles, crowds, psychology. I don’t predict — I observe structure. Less noise. More signal.
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183%Best ROI
Joined on 15th November 2024
Boston, MA
Time for Altcoins to Shine
There are several indicators turned on in this 2M TOTAL3 chart. TOTAL3 represents all altcoins minus Ethereum (and sans BTC).
Parabolic SAR
Parabolic SAR has been tagged for the first time since May 22. This tool on high timeframes confirms trend changes after the fact, but tends to trigger around the strongest phase of a trend kicking off.
Bollinger Bands
Price is above the upper Bollinger Band generating a buy signal, just as the Bollinger Bands begin to expand. This is the first buy signal since Jan 2021.
Log LMACD
LMACD is crossing bullish for the first time in its history - data only started in 2023, however.
Relative Strength Index
RSI is above 70 and just entered the bull zone.
Volume
We have the highest volume bar since May 2021, with breakout style volume.
This is the 2M timeframe, and it looks like we have anywhere from one to three 2M candlesticks left. This means, two to six months of altcoin season. Then it's all over. I think because of how fast these coins
Education: How to use the Bollinger Bands
According to research, breakout-style trend-following trading systems like the Bollinger Bands are among the most reliable. But few actually understand how to use the Bollinger Bands as a complete trading system.
The most valuable use of the Bollinger Bands is how the help to visualize volatility, or a lack thereof.
Low volatility: When the Bands tighten or narrow, it suggests a low volatility state. An analyst can strategize around this a variety of ways. In the red shadow box, we can see that the Bollinger Bands spend over a year at record tightness. During that time, there was a lack of a trend and primarily sideways movement. It is during this phase where the Bollinger Bands can be used as a mean reversion trading system, selling touches of the upper Bollinger Band and buying touches of the lower Bollinger band.
At one point during the red box, price closed outside the lower Bollinger Band, generating a breakdown sell signal. However, price i
