BITCOIN MOMENTUM INDICATORS

What are momentum indicators?

Momentum indicators describe the pace, consistency or position of recent moves. RSI compares gains with losses; MACD compares smooth price paths; stochastic locates a close inside its recent range.

How should I use them together?

A move can still point upward while losing pace. Read each value on its own scale and compare the same candle interval. A high oscillator reading is not a prediction of a reversal.

Why does one chart sit in two groups?

10 of these 17 charts also sit in another group, because one formula can answer more than one question.

Choosing between Bitcoin momentum indicators

Momentum is a family of questions about recent movement, not a single scale. Some tools compare gains with losses, some locate price within a range, and others compare the current close with an earlier one. Check which question a number answers before calling two readings a disagreement.

Balance of changes versus position in a range

RSI gives more weight to the size of recent gains and losses. Stochastic locates the close between recent highs and lows, then smooths that position. A close can sit near the top of a narrow range while RSI shows a fairly even gain-loss balance. High values on either scale do not automatically describe an approaching decline. RSIStochastic

An endpoint comparison versus a smoothed path

Rate of Change compares two closing prices separated by a chosen number of candles. MACD compares two exponential averages and their gap from a signal average. A large move at one endpoint can affect Rate of Change immediately while MACD adjusts more gradually. Inspect the actual dates being compared. Rate of ChangeMACD

Two versions of the same range position

At matching periods, Williams %R equals raw stochastic minus 100. Their identical direction is mathematical, not independent confirmation. Slow stochastic adds smoothing, which can explain a different displayed value. Stochastic RSI uses the range of RSI itself and answers another question again. Williams %RStochastic

Before comparing the readings

Use one candle interval when comparing tools. A 14-period hourly reading covers a different price path from a 14-period daily reading. A measure can rise from a low level while still describing a downward balance, so distinguish its latest change from its position on the scale.

Where do the numbers come from?

Maketo reads one combined Bitcoin spot market and calculates every formula itself, on completed candles. The candle boundaries, the defaults and the rules behind each dial are written out in the methodology.