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CHAMELEON INDICATORS
Alex Cole
02/21/18
THE CRYPTO CURRENCY MARKET
Cryptocurrencies: 1549
Markets: 8992
Market cap: $508,821,984,696
24hr Volume: $23,548,413,670
BTC Dominance: 39.1%
02/20/18
TOP CURRENCIES BY MARKET CAP
Bitcoin: $199,180,335,720
Ethereum: $90,893,461,532
Ripple: $44,019,559,520
Bitcoin Cash: $25,683,809,869
Litecoin: $8,091,447,179
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CHAMELEON
INDICATORS
A colorful look at the CRYPTO CURRENCY market.
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TRYING TO MAKE SENSE OF ALL THAT’S OUT
THERE
When there is too
much on the chart:
It can be difficult to
see the all
important price
action.
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SOLUTION: COMBINE COMMONLY ACCEPTED TA
PRINCIPLES INTO EASY TO READ VISUALS
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THE CHAMELEON INDICATORS
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CASE STUDIES AND INTERPRETATION
The Chameleon Studies can be applied on any periodicity and across all asset classes.
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BITCOIN – DAILY
The daily trend has been
bearish on bitcoin. You can
see the trend chameleon
depicts the changing trend
since the highs near
20,000. However, the latest
bar is neutral yellow.
The lower panel shows the
value of looking at the zero
line. As it should, when
trend is strong (bright
green) the oscillator finds
support at zero. In
December it struggled to
hold the zero line and the
change in trend followed
above. Now, we see that
the oscillator break above
zero preceded the neutral
yellow bar in the above
panel.
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BITCOIN – INTRADAY
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ETHEREUM – DAILY
Ethereum fought the recent
downturn in the crypto
currency markets longer than
the other currencies.
Anecdotally, charts show that
trend line breaks are often
accompanied by color
change. This confluence of
technical events can increase
confidence. See the upper
panel.
Looking at the oscillator, we
see that it stayed above the
zero line during the main
move, with rallies off zero
providing possible entry
points. As Ethereum
corrected, the oscillator was
negative and found
resistance at the zero line.
Most recently, it has shown
some bullish momentum.
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ETHEREUM – INTRADAY
The chart on the right is a
60 minute chart of
Ethereum. The main move
from the 14th to the 18th
was uncovered in bright
green. Since then,
Ethereum has struggled to
find a trend and we see this
in the Chameleon Trend
being unable to hold any
color for any length of time.
Most recently however,
there has been a strong
move down and the
Chameleon is strongly
bearish.
Looking at the oscillator, we
will need to see if the
oscillator gets turned away
by the zero line from below.
This could signal more
bearish price action.
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RIPPLE – DAILY
The daily chart on the
right of Ripple shows
how the oscillator failed
to rally off zero in mid
January as it should
have if the trend was
strong (circled). This
preceded the trend
color change above.
Most recently, the
oscillator has been able
to break above zero. If
the oscillator can rally
off zero here we could
be seeing the end of
the correction, leading
to trend change above.
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RIPPLE – INTRADAY
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LITECOIN – DAILY
LiteCoin is painting the
most bullish picture of
the currencies on a
daily chart. Having
corrected from highs
over 350 you can now
see that price is once
again trying to paint
bullish green bars. The
recent move of the
oscillator into positive
territory supports this.
Look for price to paint
steady green bars and
the oscillator to find
support at zero if an
uptrend is taking
shape.
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LITECOIN – INTRADAY
On an intraday 240
minute chart, LiteCoin
has been bullish for
several days. Today
though, price seems to
be breaking support
AND we see the first
yellow neutral bar.
Oscillator divergence
warned that price could
retreat. The oscillator
has also significantly
broken the zero line to
the downside. Look for
further short term
bearish price action.
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BIG PICTURE: BITCOIN – WEEKLY
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CHAMELEON INDICATORS
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