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3 TV indicators from Capriole Charles to help managing your HODLing
🕑 Added 2021-08-06 12:34:37 +0000 UTCCapriole Charles is one of the most prolific and knowledgeable authors on TradingView.
He has produced many of the most commonly used indicators by crypto traders.
Today I wanted to bring 3 indicators that I love using for deciding when to add more to my BTC bags and also when to take some profits.
You might be familiar with these indicators but is always good to have them ready on a dedicated tradingView layout so you can check them at any time from your phone when needed.
Hash Ribbons
The first indicator is called the "Hash Ribbons". This indicator uses on chain data to determine where are we in the cycle. As Capriole describes, "the best prices for BTC occur on Hash Rate "recovery", and when price momentum is also positive. Historically, this strategy has yielded average returns to cycle peak of >5000%, with max Drawdown of -15%".
The good news is that we are potentially about to trigger a new alert. And be ready because this does not happen very often. The last one triggered in last December and it had a massive impulsive move of 250% to the very top, or if you decided not to sell at the top you would still be at 123% now. If you waited for his capitulation signal, you would have closed the deal at 187%
I have setup an alert to our indicator-signals so we know exactly when is this going to trigger. Personally I'll add some more cash to BTC if it triggers. I'm not sure if this indicator is valid on other tokens as it uses security function to pull on chain data from other symbols. In case you wanted to use i, it comes with alerts for capitulation, buy and recovered events.
RSI daily divergence tops + bottoms
We are already familiar with divergences, our indicator signals channel on discord is helping us to keep an eye when there's high likelihood of trend reversal.
I found Capriole's implementation extremely well adjusted for daily signals. If you look at the chart it's been amazing if we use it for adding extra funds to our BTC holdings and also for timing take profit events. Imagine you used it consistently to manage your portfolio. This indicator can be applied on any coin. Whichever coin you chose you can setup alerts and spot the best opportunities. I wouldn't use it as a go-all-in indicator, and would never use any indicator for that. But to add a bit more, and take off a bit I think it's perfect.
Just by looking at the chart I can see that the big majority of the signals are spot on.
One small downside is that it doesn't come with alerts. But that is not a bit deal as he already provided with two variables called conveniently "buy" and "sell". The indicator is open-source so you can use these buy and sell to quickly get a backtestable version or add alerts to it too.
Auto-fibs
TV already comes with auto fibonacci indicator, but I find Capriole's a very interesting one as this one in particular uses the ATH within a number of given days in the past.
It really helps me to visualise which levels are more likely to be meet in the immediate term.
On an uptrend it's very useful to accurately determine what could be the support when there's a retracement taking place.
The fib levels drawn using this approach are "respected" very consistently. You can see how recently we touch the 41K area and then retraced to the fib level below.
You could potentially use this as a more aggressive way to enter and exit the market compared to the RSI divergence which is more accurate but it fires less often (at least on the daily TF).
On an uptrend during a bullish market I would consider adding to my positions every time we touch the green line and taking some profits out of the table when getting to the red lines.
On a bear market this indicator wouldn't give much signals as it can get very wide as it will keep the top red line tied to the previous ATH.
Comments
Can you share with us the bot settings for the Hash Ribbons? thanks
David May
Amazing, thanks
