Our price predictions are determined using various machine based algorithms that monitor the relative strength index (RSI), moving average convergence divergence (MACD), moving weighted average (MWA), average true range (ATR) and bollinger bands for each specific cryptocurrency. By processing this data through our machine learning technology, we can try to predict the direction the market is heading and forecast future price points.
The relative strength index (RSI), a momentum indicator, is one of the most commonly used indicators in the technical analysis of cryptocurrencies. RSI analyzes the speed and magnitude of recent price fluctuations to assess if a virtual asset's price lies in an overvalued or undervalued region.
Developed by J. Welles Wilder Jr., RSI represents an oscillator on a scale from zero to 100. An overbought scenario is generally indicated by an RSI reading of 70 or higher, while an oversold state is indicated by a value of 30 or lower.
Apart from identifying overbought and oversold assets, the RSI has multiple other capabilities. It may also indicate assets that are poised for a price correction or trend reversal. It can serve as a buying and selling signal.
The RSI can benefit traders by making more informed trading decisions when used in combination with other technical indicators.
The Moving Average Convergence Divergence (MACD) indicator consists of three parts: the MACD line, the signal line, and the MACD histogram.
Generally, the signal line is depicted in orange, while the MACD line is blue. So, when the MACD line goes above the signal line, the buying pressure is high, and the bulls are in charge of the price action. In this case, the MACD histogram is bullish and erect, most probably green in color.
On the other hand, when the signal line is above the MACD line, we can confirm that the sellers are in control and the bearish trend prevails in the timeframe. In this case, the MACD histogram is bearish and inverted, most probably red in color.
The Bollinger Band, a type of chart indicator used for technical analysis, is heavily used by traders in many markets, including digital assets, stocks, and securities. Introduced by John Bollinger in the 1980s, the indicator offers unique observations on the price and volatility of the asset.
Bollinger Bands can be used for various purposes, including trend following, identifying overbought and oversold levels, and keeping an eye out for breakouts.
The indicator consists of three lines: the middle one is a simple moving average, while there is an upper and a lower band.
The upper band is a bullish region, and price action forms an uptrend if it breaks above it, while the lower band is bearish, and price action forms a downtrend if it breaks below it.
Introduced by J. Welles Wilder Jr., ATR is responsible for measuring market volatility by decomposing the price movement. More specifically, it is the average of true ranges over the specified period. Most commonly, the ATR range is 14 periods, which can be intraday, daily, weekly, or monthly.
So, in short, the ATR gives you an insight into the average price variation of assets like cryptocurrencies within a given time frame.
A moving average is a price indicator that smooths out the price data over a specified period of time by creating real-time averages for an asset's price.
The most commonly used averages for cryptocurrencies are 10, 20, 50, 100, and 200. If the moving average for a shorter duration is above the moving average for a longer one, we can confirm that prices are bullish, while vice versa indicates a bearish trajectory being followed by the asset.
The accumulation/distribution line is a line that shows when the accumulation of a cryptocurrency begins. There are four scenarios for this line:
The On-balance volume indicator shows the current trading volume for an asset and whether it is flowing into or out of a specific digital currency pair. There are four cases for this line: