Defvader do you know of a simple method to detect the trend of a coin?
I am trying to learn to read MACD but everytime I think I got it right it doesnt go the way I thought it would.
I am trying to learn to read MACD but everytime I think I got it right it doesnt go the way I thought it would.
There is no guaranteed way to detect trend. As far as the bot goes I would like a feature added such as I described earlier. Essentially the bot would record x number of the last completed orders, lets say 300 for example, the number is set by the user. Then the user defines a trend number. Lets say 50 for example. So in this example the bot would compare the average price of the last 50 orders versus the average price of the last 300. If the aversge price of the last 50 is higher than the 300 then the price is trending up, and vice versa. Think of it as comparing two short moving averages to determine immediate trend. Its a simple, straightforward way to help the bot buy/sell at more profitable times.
As far as manual trading goes, look for confluence. Such as a MACD cross combined with a RSI rising above 30. You want a buy signal confirmed at least two indicators combined with a review of price action. Tons of great vids on YouTube about trading strategies and confluence.
Do you know how to read the sma lines?
https://i.imgur.com/yJzfSH0.png
I created a SMA yellow line for 100 candles and a red one for 50 candles.
What do they tell ya? I am seeing that it is in a upward trend although very slight incline but its going up and because the red line seems constantly parallel to the red line then the trend is to continue to go up?
Am I reading that right?
Both lines are trending up, yes. That the short term sma is above the long term means that the short term trend is up. The distance between the two lines indicates strength of the trend divergence. You may want to do some research on the MACD which is basically what you've done here. I would like to see a trend follower using sma like you have done here where the bit would compare short vs long term sms and if the short term trend is up the bot waits to sell until the trend reverses and conversely if the short term trend is down the bot will not buy until a trend reversal is indicated. Compine this simple trended with Market Maker and leonArdo would be a major force.
