TREND IDENTIFICATION
“Trend is your friend, never trade against the trend!”.
The old saying which every trader (day or intraday) should know and follow.
This of course doesn´t mean that there is no way to make money to do the opposite, but it is much easier follow the mood on the market. It is also reason why we consider trend identification as a crucial part of trading.
Exponential Moving Average (EMA)
Exponential Moving Average (EMA) is one of the most effective trend identification indicator.
Traders like it because of it its simplicity.
EMA is usually used in combination between 200 days (as a slow indicator) and 50 days or 150 days (as fast indicator of the trend).
- Bullish Trend = EMA 50/150 is above EMA 200
- Bearish Trend = EMA 50/150 is below EMA 200
Bullish EMA Cross
ZEUS will send you an alert describing market conditions.
The real example of Telegram message:
1h #BNB/USDT Bullish EMA 50/200 Cross
On the picture you can see how our Members received the alert to their private Telegram chat with ZEUS Bot showing continuation of uptrend right after EMA 50 Crossed EMA 200 from downside.
OUR TIP: before you enter the trade and to avoid false signals always check other indicators which confirm bullish market conditions or use our Trading Setups.
The real example of Telegram message:
1h #BNB/USDT Bullish EMA 150/200 Cross
The picture is demonstrating situation when EMA 150 Crossed EMA 200 from downside. The Bullish Cross occurred few candles after Bullish EMA 50/200 Cross.
Basically EMA 150 confirmed change of the trend from the picture above. That is also why EMA 150 is considered to be more conservative Indicator.
Bearish EMA Cross
ZEUS will send you an alert describing market conditions.
The real example of Telegram message:
1h #NEAR/USDT Bearish EMA 50/200 Cross
On the picture you can see how our Members received the alert to their private Telegram chat with ZEUS Bot showing continuation of downtrend right after EMA 50 Crossed EMA 200 from upside.
OUR TIP: before you enter the trade and to avoid false signals always check other indicators which confirm bearish market conditions or use our Trading Setups.
The real example of Telegram message:
1h #NEAR/USDT Bearish EMA 150/200 Cross
The picture is demonstrating situation when EMA 150 Crossed EMA 200 from upside. The Bearish Cross occurred few candles after Bearish EMA 50/200 Cross.
Basically EMA 150 confirmed change of the trend from the picture above. That is also why EMA 150 is considered to be more conservative Indicator.
Abnormal Volatility
Abnormal volatility means that market conditions are in extreme situation.
It may happen when large order or position is filled and it is usually connected with a huge volume. It could be that some big player stepped in or there was some news and market reacted accordingly.
These situations are commonly called “Pump and Dumps” and it is very dangerous for unexperienced traders to step into the marker. On the hind side such a situations bring opportunities because usually soon after such a move occurs there is consolidation phase going to the opposite direction to the initial move.
Bullish Abnormal Volatility
ZEUS will send you an alert describing market conditions.
The real example of Telegram message:
15m #BTC/USDT Bullish Abnormal Volatility
On the picture you can see how our Members received the alert to their private Telegram chat with ZEUS Bot and right after the Bullish Abnormal Volatility occurred the market turned to the upside.
Sometimes Bullish Abnormal Volatility brings the whole trend reversal, another times it just has short term counter rally called “dead cat bounce” and after the bounce trend continues to the downside.
OUR TIP: before you enter the trade and to avoid false signals always check RSI value which should be in Oversold territory and also check other indicators which confirm bullish market conditions or use our Trading Setups.
Bearish Abnormal Volatility
ZEUS will send you an alert describing market conditions.
The real example of Telegram message:
15m #ETH/USDT Bullish Abnormal Volatility
On the picture you can see how our Members received the alert to their private Telegram chat with ZEUS Bot and right after the Bearish Abnormal Volatility occurred the market turned to the downside.
Sometimes Bearish Abnormal Volatility brings the whole trend reversal, another times it just has short term counter rally called “inverted dead cat bounce” and after the bounce trend continues to the upside.
OUR TIP: before you enter the trade and to avoid false signals always check RSI value which should be in Overbought territory and also check other indicators which confirm bearish market conditions or use our Trading Setups.
