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Which Indicator for BTC/LTC on Kraken?

Discuss and share different settings for indicators.
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Which Indicator for BTC/LTC on Kraken?

Postby Wartezimmer » Thu Mar 05, 2015 6:46 pm


I tried out nearly half of the list from the advanced edition and nothing looks to be the right. What do you think is the best for this chart?
Thanks very much for your help!!!!!

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Re: Which Indicator for BTC/LTC on Kraken?

Postby Theo » Sat Mar 14, 2015 11:12 am

I think that is a hard but interesting pair.
Why not try to scalp it using blind indicator and price percentage change 0,4%

Besides that a basic "Price High Low" in the current range would work to.

Let me know if that helps.

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Re: Which Indicator for BTC/LTC on Kraken?

Postby stephan » Sat Mar 14, 2015 12:50 pm

Let me see if i can help out too on this matter, because we can use an analysis on this.

The first question you have to ask yourself is what do you know about this pair? We have both BTC and LTC here and what do we really know about them?

Well one thing we can say is that LTC clearly follows the price of BTC. This is an effect which we can see if we check out BTC/USD and LTC/USD. We can also see this back in BTC/LTC because we see this correction happening each time. This confirms something else too, we can see that BTC/LTC is working with an kind of divider, an relation exists between them.

So what does this tell us? Well it says one important thing: These price movements are rapid. As a result we can directly say that moving averages will not work well in here, its not a trend, its a relation we are looking at.

With the moving averages excluded we can have to look for more sideways solutions. So if we add in an common RSI for example then we should get better signals. However when you do this then you will soon notice this is not true. And this does make sense because we are forgetting something right now, we are forgetting the fact of rapid price movements. These rapid movements will make it hard for the RSI. After all by nature this indicator compresses the prices within an range of 0 and 100 to see where we are at.

So to get an indicator which make sense we have to adjust it to the rapid speed. We can do this in a few ways, we can take a Stochastic for example which is faster then an RSI in response. Or we can simply reduce the length an RSI uses to make sense of the prices. (default set to 30, but 20 or 15 will do better)

With this knowlegde it should become much more easy to find an good trading indicator. Have a try and see what happens. It is not an matter of trying all the indicators, its an matter of looking and thinking about what you are looking at exactly. I know this is very hard, but it will become a second nature very fast.

By the way... i am now directing you to sideways indicators. This is in line with the suggestion of Theo. Within sideway markets you can also use fixed price and relative price indicators. In essence its comes own to exactly the same approach, but only slightly different.

This is globally the line of advice for trading on Btc/Ltc, tuned to the level of what somebody knows.

- Price high/Low (so you know what you have set and you know what to expect)
- Price high/Low + Drop-loss + Roof-In (same principle, but now expended with more safety)

Average users:
- Fast responding side-ways relative indicators (based on the analysis i just wrote)
- Snipering/margin trading (this is theo his suggestion)

Advanced users:
- Apply inter-market (Btc/Usd) capabilities (combined with relative indicators and no safeties)
- Long term moving averages (yeah they do work after all, but only for long runs and only if the relation/divider between BTC-LTC gets adjusted)
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