With the regulatory doom and gloom dominating the news feed I think it might be time to brighten up the weekend and discuss a new indicator that Biyond Trader has developed based upon none other than myself.
Having your own quant team to develop technical indicators has many benefits, so as a company we decided that we should get to work on designing one that incorporates all the key on and off-chain movements that I personally look for.
Being a discretionary trader I would surely be more at home and suited to the 1980s style of trading, i.e. screaming at a quotation board in some trading pit in London.
However, things have moved on, so as well as my old school trading methods Biyond has a hybrid approach where we both acknowledge the benefits of discretionary and quantitative trading.
As an example of why I'm so impressed with quant trading models you may have seen that the Biyond Atlas indicator has been issuing a screaming sell signal for the last 10-days, without pause.
Biyond Atlas was way ahead of the Binance news and myself and has captured the down move perfectly, adding more percentages to an already impressive track record since it's inception.
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Starting with the name of the indicator we decide to call it the NB Scout indicator. (My initials incase your wondering)The basic principles for the indicator are that we are looking for outlier spikes on-chain, set to a specific number, or crossovers for the sole technical metric.
The metrics employed for NB Scout are Age Consumed, Daily Active Address Activity, Dormant Circulation (set to a specific date), DAA Divergence, and the Williams Alligator indicator.
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The automated bot scans not only Bitcoin, but a selection of altcoins to see if the conditons to issue a buy or sell signal have been met.
Once they have been met a Buy or Sell signal will directly be sent to our Discord channel.
Full disclosure, there is no extensive backtesting on the NB Scout indicator. It's a straight to Live product, and so far we have two signals.
The first was a sell signal for Uniswap, which came about on Friday morning. This has already generated just over 20% profit and the signal has flipped back to neutral, meaning the signal is closed.
Today we have a new buy signal for LINK/USD come in. There is some fundamental news on the horizon with Test Connecting for Chainlink, so I am wondering if this is what is behind the signal.
Many more quant products and partnerships are in the works currently, so stay tuned.
Back to the market, and I will keep things very simple. Today I will cover Bitcoin, Litecoin, and of course Binance Coin.
Starting with Binance Coin and the on-chain movement surrounding Binance has been extremely muted and underwhelming considering what has been unfolding news wise.
This is strange on many levels, only sentiment metrics have generated true sell signals this week.
Technically, Binance is not a difficult monster to predict. I've noticed that Binance tends to gravitate towards familiar technical areas, $180.00, $230.00, $335.00, and $400.00.
With that said, BNB is either at a rebound or collapse spot at $230.00. Failure to move above $255.00 next week and $180.00 certainly comes into focus.
Litecoin looks to have fallen foul to the broader market mood after some impressive on-chain activity.
The Litecoin halving pump looks to have been abandoned, so I would be inclined to look for more coming weaknesses as LTC seems to have missed its moment.
No obvious DAA divergence or technical divergence, so I am going to pass on giving a price call for LTC.
I would say watch out for a 5-wave move lower if we stay under $82.00. FYI, Wave 1 may just begun in that instance.
And then we come to Bitcoin. The top coin has not collapsed by any means, however, it does look vulnerable below $26,400.
I would suggest two options exist for dip-buyers. Try to buy around $24,300 or try to buy at $22,800 in expectation of a bounce to $35,000.
I like $22,800 as it is the ultimate make-or-break spot on my chart. If BTC breaks that area then $19,600/$16,000 is on the cards. If it bounces back above $27,500 then the correction is probably over.
Interesting time ahead if we crack $25,300 next week.
