ETH’s inability to show strength even when the Merge upgrade is scheduled for mid-September is observed as a telling sign that markets are going to bleed.ĮTH’s first major resistance comes in at $1,642, 50-day EMA and subsequently at $1,712. ETH, after experiencing a 128% rally into the Merge upgrade from June lows, it got steeply rejected from the 20-week moving average at $2,000. BTC is currently trading at $21,400 with a 0.5% gain in the last 24 hours.Įthereum (ETH) followed the footsteps of BTC last week losing 12% on a day before locally reversing near $1,500. Horizontal level at $20,836 continues to act as major support for current trajectory. The first short-term resistance will come at $22,600, 20-day exponential moving average (EMA) and subsequently at $23,000. BTC closed last week at $21,500 after reversing at $20,836 intra-day.ĭespite losing critical support, holding above $20,000 is seen as a sign of strength in this bearish climate. Losing 200 WMA at $23,120, which was considered as a lifeline support by bulls, has dialed up negative sentiment among the crypto investors. Bitcoin strugglesīTC slipped below the 200-week moving average (WMA) in the middle of last week quickly receding 10% in just a day. In today’s article, we will briefly look at the price actions of major crypto assets along with short-term outlook for Bitcoin (BTC). This in turn had reverberations on all other markets including on crypto assets. The DXY index has been growing as investors are flocking to US dollar reserves amid fears of global recession. Europe is most affected though gas prices are rallying in the US and Asia too. Heatwaves accompanied by natural gas shortages are expected to drive gas prices higher this summer. On the whole the indicator is easy to follow and can be an effective part of an overall strategy.The global financial market has been underwater for the past couple of days with Europe’s surging gas prices at the epicenter of worries. However, during periods of sideways trading the indicator is ineffective and provides inaccurate signals. The EMA ribbon indicator is highly effective at providing buy and sell signals in volatile markets, alongside providing support and resistance. Your indicator should now be complete and look something similar to what is shown below.īTC/USDT indicator example Indicator conclusion To build the indicator you will require the following EMA settings Indicator
EMA ribbon BTC/USD How to build the EMA ribbon indicator on AAX In the example, below this is shown with the green ribbon / green thumb. On the contrary, bullish signals occur when the shorter timeframe EMAs cross above the longer time frames EMA. We can see this indicated on the timeframe below with the red thumb, with the ribbons turning red. The bearish crossover occurs when the longer timeframe EMAs move above the shorter time frame EMAs. When using the ribbon we look for crossovers.īelow we can see an example of bearish and bullish crossovers.
The ribbon shows the EMA lines from multiple EMAs on the selected timeframe.
The second section of the EMA ribbon indicator is the ribbon itself. In the example below we can see the 200 day EMA provides both support and resistance for BTC as indicated with the white arrows. The purpose of the 200 day EMA is firstly to provide support and resistance for the cryptocurrency. Below we can see the 200 EMA section of the indicator. The indicator consists of two main sections. EMA ribbon BTC/USD The makeup of the indicator Below, we can see an example of the EMA ribbon indicator on TradingView. Apart from looking pretty, the indicator can provide buy and sell signals as well as provide support and resistance. The EMA ribbon indicator works through using a variety of EMAs using various amounts of data for each individual indicator in order to create a ribbon effect. We recommend that you read through these articles before reading the rest of this post. A crucial part of this EMA ribbon indicator is understanding EMA crossovers. If you are unfamiliar with the EMA indicator you can have a read of our previous article explaining the indicator. In this article, we will be looking at how to use and build the EMA ribbon indicator on AAX.