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The investment strategy focuses on utilizing the RSI 10-Day factor, which is deemed very significant, to make informed decisions based on Bitcoin's price movements over the past 10 trading days. This indicator helps identify potential trend reversals by determining whether Bitcoin is overbought or oversold.
- RSI 10-Day (Most Commonly Used Period in the Market):
- Significance: Very significant
- Value Range: x ≥ 64.45
- Description: Measures the strength and speed of Bitcoin's price movements over the past 10 trading days. Helps determine if Bitcoin is in an overbought or oversold condition, signaling potential trend reversals. An RSI above 70 is considered overbought, while below 30 is oversold.
- Price Consolidation Range Ratio Over 5 to 20 Trading Days:
- Significance: Moderately significant
- Value Range: x ≥ 16.57%
- Description: Measures the range ratio of price changes over 5 to 20 trading days to assess price consolidation. Higher values indicate significant price changes, while lower values suggest minor fluctuations.
- Cryptocurrency Trading Volume (Taker) Compared to 5-Day Average (In Standard Deviations):
- Significance: Insignificant
- Value Range: x ≥ -1.77 STD
- Description: Measures today's cryptocurrency trading volume deviation from the 5-day average. Positive bias indicates volume exceeds the average, while negative bias suggests it is below, measured in standard deviations.
- MACD Histogram Daily Difference from Previous Trading Day:
- Significance: Insignificant
- Value Range: x ≥ -3.70
- Description: Represents the relationship between consecutive MACD histogram bars, reflecting momentum shifts or potential trend reversals. Calculated as today's MACD Histogram minus the previous day's MACD Histogram.