Best indicators for crypto market - Hash Ribbon
Hash Ribbon indicator is a truly unique tool for technical analysis for the cryptocurrency market. In the article we'll have a look, how it works.
Hash Ribbon indicator is a truly unique tool for technical analysis for the cryptocurrency market as it includes calculation of specific metrics like a 1-month and a 2-month simple moving averages of Bitcoin’s Hash Rate. This indicator was created by Charles Edwards and below is his explanation of how to use it:
“When the 1-month SMA of Hash Rate crosses over the 2-month SMA of Hash Rate, the worst of the miner capitulation is typically over, and the recovery has begun. Buying at these points of time yields incredible results.”
The idea is to buy during “Miner Capitulation” when the hash rate starts to recover. On the chart below the recovery is represented by the 1-month SMA (hash-rate) crossing over the 2-month SMA (hash-rate) from the bottom-up:
Historically it has proven to be quite successful at predicting the right timing of Bitcoin entering a long-term bullish trend. The dates when the indicator predicted to buy BTC are presented in the chart. Each time the indicator plotted “Buy” signal it was the point of a long-term bullish trend inception. See the chart below where past 4 Buy signals emerged starting from the year of 2016:
To setup “Hash Ribbon” indicator simply go to “Indicators” in the TradingView chart overview and type in the search “Hash”. The first result “Hash Ribbons” should pop-up instantly. A step-by-step guide is provided below: