[blackcat] L3 YACD38

24 Nov 2022

Level 3
Background

"3/8 moving average" golden cross enters, and dead cross exits.

Function

This set of methods is an improved moving average usage - "38 moving average usage", we need to use three moving averages:
3-day, 8-day and 21-day moving averages.
Why is it the 3-day, 8-day, and 21-day moving averages? Most of my friends may not be clear. 3, 8, and 21 are all Fibonacci numbers, also known as the golden section numbers. The Fibonacci number is a basic pattern of nature, which exists in all things. If you don’t understand it, you can go to a certain degree to understand it. In short, it is a very magical existence.
Keep in mind the principle of only doing uptrends and not downtrends. Then we have to use our 21-day moving average skillfully. The 21-day moving average happens to be the average price line for one month. We take it as the decision-making line. When the decision-making line goes down or goes flat, we mainly wait and see; , the operation success rate is higher!
Let's directly share the technical points of "38 moving average usage":
1. Entry point: the 3-day line crosses the 8-day line to form a golden cross, or both the 3-day and 8-day line cross the 21-day moving average; the position of the golden cross must be above the 21-day moving average, and it is invalid if it is below;
2. Basis for holding shares: After entering the market, the moving averages are arranged in a long position, and the K-line rises along the 3-day and 8-day moving averages, hold it patiently, and sell for whatever reason you buy!
3. Exit point: When the 3-day moving average crosses the 8-day moving average to form a dead cross, or the 3-day and 8-day moving averages break below the 21-day moving average, then decisively leave the market;
Note: "38 moving average usage" only needs to refer to the moving average, and the other most reference quantities can be changed. As long as the above conditions are met, you can boldly intervene, and after the intervention, you will rise to the top! Don't underestimate the usage of this set of moving averages, carefully comprehend and memorize them by heart, and be able to achieve the unity of knowledge and action, and you will be able to stand up and be the master from now on!

Remarks
Feedbacks are appreciated.

22 Apr

Nota Keluaran

OVERVIEW
The YACD38 indicator is a sophisticated technical analysis tool that provides traders with detailed market insights through various analytical components. The indicator combines exponential moving averages (EMAs) and simple moving averages (SMAs) to create a comprehensive view of market momentum and trend dynamics. It features a distinctive histogram display system along with specific crossing indicators that help traders identify potential entry and exit points in their trading strategies.

KEY COMPONENTS

• YACD (Yellow Adaptive Cross Difference): Tracks short-term market movements
• YSIG (Yellow Signal): Monitors medium-term market trends
• Histogram: Visual representation of momentum differences
• Crossing Points: Critical signals for trading decisions

HOW TO USE

Setup Configuration

Adjust fast_length parameter for more sensitive readings
Fine-tune slow_length for smoother trend identification
Interpretation Guide

Positive histogram values appear in red/blue columns
Negative histogram values show up in green/yellow columns
Watch for crossovers between YACD and YSIG lines
Trading Signals

Green crosses indicate potential buy signals
Red crosses suggest possible sell signals
Aqua/fuchsia dots highlight important threshold crossings
PARAMETER SETTINGS

Fast Length: Default value of 3 can be adjusted for increased/decreased sensitivity
Slow Length: Starting at 8, modify based on desired timeframe analysis
Plot Visibility: Toggle option to enable/disable visualization elements
TIPS AND BEST PRACTICES

• Use larger timeframes for clearer signals
• Combine with other indicators for confirmation
• Pay attention to divergence patterns
• Consider market volatility when interpreting results

LIMITATIONS

• Performance may vary across different financial instruments
• False signals might occur during high-volatility periods
• Results depend heavily on proper parameter selection

TECHNICAL DETAILS

The indicator calculates several key metrics including:

YACD Value: Measures short-term momentum relative to longer-term trends
YSIG Value: Indicates medium-term market movement
YHIST Value: Represents the difference between YACD and YSIG
Positive/Negative Components: Separates upward/downward momentum