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BTC Price:
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Avg. BTC Price of 28 previous weeks:
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(BTC Price)/(28 weeks avg):
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Disclaimer – This is not financial advice. I am not a financial advisor. Do your own research and speak with your financial advisors. This indicator is for informational purposes only.
How to use the indicator – This indicator produces a signal approximately every year and a half. Most of the time the indicator is in the neutral range which dictates no action. I use this strategy to gradually build my BTC position over time. I am always long BTC but use periods of extreme price strength (high price) relative to the average to reduce my BTC position by up to 25%. When the BTC price falls significantly below the average price, I use the funds from previous sales to repurchase the BTC I sold. I can usually buy more than I sold. The key point, I never buy BTC when the signal indicates sell, and never sell BTC when the signal indicates buy.
Note 1 – You can click in the chart area to view the indicator for a historical date.
Note 2 – When buying or selling, I never make large trades all at one time. I sell 1% of the position per week into climbing prices to a maximum of 25% liquidated. When buying, I buy 1% per week into price weakness. This is not advice. These are the actions I take. Talk to your own financial advisors.
Methodology – The indicator compares the weekly price to the 28-week moving average (approximately 200 days). When price/average >= 1.5 the signal says “sell/don’t buy”. When price/average <= .8 the signal says “buy/don’t sell” . All relationships between .8 and 1.5 are marked as neutral.
Get notified when the signal changes…
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