Momentum Bitcoin Trading Analysis and Momentum Trading Signals

The Moving Average Envelope indicator creates two lines around the btcusd price forming a channel. The upper and lower channel lines are drawn at an equidistant level above and below the Moving Average. The distance to draw the envelopes is calculated using a percent or a number of pips.

Moving Average Envelope

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

MA Envelope can be traded using several different trading rules. The main method of generating bitcoin trading signals is to use the btcusd price penetrating the upper channel or lower channel.

Bullish signal

Bitcoin Price penetrating the upper channel is a long buy crypto signal.

Buy Crypto Trading Signal

Bearish signal

Bitcoin Price penetrating the lower channel is a short sell crypto signal.

Sell Crypto Trading Signal

In a trending market the Moving Average points upwards in an up bitcoin trend market or downwards in a down btcusd trending market. It is good to use the envelopes together with other technical indicators such as bitcoin trend lines so as to confirm the signals generated.