RoboDCA is an indicator I developed to help me accrue Bitcoin at its low point. It won't necessarily be at its lowest point but it's low enough that if you dollar cost average for the long term, the difference is negligible. While using this indicator, I find it also suitable for swing trades in the 4H timeframe every once in a while. Might be the indicator to use if you only do 2-5 trades a month last a few days between trades.
The fundamentals of RoboDCA came from these 2 theories:
Bill Williams Balance Line
Bill Williams is fantastic, a lot of how I see the chart borrows from his books. For this particular case, his balance line is interesting to me because it's a series of highs and lows that are when broken through inspires a powerful move.
Moon Phase
Every month for as long as the moon and earth have danced in the cosmos, the moons gravity affects the earth physically. Some myth and legends like werewolves even came from this cosmic relationship. For prices though it paints a more honest relationship I would say. It is mostly accurate more than 50% of the time that when the moon's light intensity hits 90% or above, its gravity pulls prices to its lower if not lowest point for about 15 days in the past and 15 days in the future. While a new moon with its light intensity at the lowest would present a local peak.
I wasn't sure about this the first time but charts don't lie, they can't. For dollar cost average purposes, this is one of the best way of not just buying blindly into the market.
RoboDCA
Based on the 2 fundamentals above, I tried to create an indicator to help me see price movements and its direction more honestly. What I can say is this indicator tries to tell you if prices are in a good position to buy.
Numbers have always been interesting for me and while developing this indicator I came across an interesting one, number 528. The number is supposedly an angelic number that communicates wealth and prosperity, sound like my kind of number. I thought to myself, the simplest prove is to just put the number to a moving average indicator. I opted for EMA to keep it close to prices compared to regular MA and I was pleasantly surprised.
As you can see, the EMA line acts as a perfect support and resistance. Breaking up or down the line would start a powerful move to the direction it was breaking at while touching the line through wicks held as strong support and resistance.
The problem I don't enjoy with moving averages is it's hard to measure zones, you'd need to zoom in into the candles to define the zones manually. I wanted something that would define the zones on screen without my intervention. This brought me back to Bill Williams Balance Line, they have highs and lows. The next step was to put the high/low from the balance line and EMA both lines creating a zone.
The zone created fits perfectly to my needs. Now I can see powerful moves before it happens. When a zone has been tested 2 or 3 times, the chances of prices making powerful moves is humongous. This is a zone that is derived from exponential moving averages of the last 528 high and low balance lines, this in itself is a strong indication for direction.
Let's couple the zone with moon phases like what the chart below illustrates.
In this daily chart, the blue upwards arrow represent an opportunity to buy while the red downward arrows represent an opportunity to sell based on Moon Phases. For dollar cost average, you can see that blue arrows that showed up near to the balance line ribbon represent a perfect buy entry, conviction to buy is as strong as it can be.
Although both Moon Phases and the zone should be enough to know when to buy, it doesn't tell a story of how the upcoming move came to be. Someone told me about another angelic number, this time it's number 247. Let's how this stack up when put both EMA528 and EMA247 together.
It's a sight to behold.
When prices are moving back and forth between the both EMAs, it's telling you that a powerful move is soon coming. Most traders would also know the meaning of crossovers between a slower MA versus a faster MA or the other way around.
Conclusion
This indicator is written to help me dollar cost average, I hope the explanation above is enough to describe to you how to use the indicator opportunistically. I regret that for this indicator I decided to not share its source code. The logic for this indicator is described above which I'm sure can be a base for anyone to write their own version of it.
Above said, I wish everyone a 528 vibe of wealth and prosperity. Cheers!
The fundamentals of RoboDCA came from these 2 theories:
- Bill Williams Balance Line
- Moon Phase
Bill Williams Balance Line
Bill Williams is fantastic, a lot of how I see the chart borrows from his books. For this particular case, his balance line is interesting to me because it's a series of highs and lows that are when broken through inspires a powerful move.
Moon Phase
Every month for as long as the moon and earth have danced in the cosmos, the moons gravity affects the earth physically. Some myth and legends like werewolves even came from this cosmic relationship. For prices though it paints a more honest relationship I would say. It is mostly accurate more than 50% of the time that when the moon's light intensity hits 90% or above, its gravity pulls prices to its lower if not lowest point for about 15 days in the past and 15 days in the future. While a new moon with its light intensity at the lowest would present a local peak.
I wasn't sure about this the first time but charts don't lie, they can't. For dollar cost average purposes, this is one of the best way of not just buying blindly into the market.
RoboDCA
Based on the 2 fundamentals above, I tried to create an indicator to help me see price movements and its direction more honestly. What I can say is this indicator tries to tell you if prices are in a good position to buy.
Numbers have always been interesting for me and while developing this indicator I came across an interesting one, number 528. The number is supposedly an angelic number that communicates wealth and prosperity, sound like my kind of number. I thought to myself, the simplest prove is to just put the number to a moving average indicator. I opted for EMA to keep it close to prices compared to regular MA and I was pleasantly surprised.
As you can see, the EMA line acts as a perfect support and resistance. Breaking up or down the line would start a powerful move to the direction it was breaking at while touching the line through wicks held as strong support and resistance.
The problem I don't enjoy with moving averages is it's hard to measure zones, you'd need to zoom in into the candles to define the zones manually. I wanted something that would define the zones on screen without my intervention. This brought me back to Bill Williams Balance Line, they have highs and lows. The next step was to put the high/low from the balance line and EMA both lines creating a zone.
The zone created fits perfectly to my needs. Now I can see powerful moves before it happens. When a zone has been tested 2 or 3 times, the chances of prices making powerful moves is humongous. This is a zone that is derived from exponential moving averages of the last 528 high and low balance lines, this in itself is a strong indication for direction.
Let's couple the zone with moon phases like what the chart below illustrates.
In this daily chart, the blue upwards arrow represent an opportunity to buy while the red downward arrows represent an opportunity to sell based on Moon Phases. For dollar cost average, you can see that blue arrows that showed up near to the balance line ribbon represent a perfect buy entry, conviction to buy is as strong as it can be.
Although both Moon Phases and the zone should be enough to know when to buy, it doesn't tell a story of how the upcoming move came to be. Someone told me about another angelic number, this time it's number 247. Let's how this stack up when put both EMA528 and EMA247 together.
It's a sight to behold.
When prices are moving back and forth between the both EMAs, it's telling you that a powerful move is soon coming. Most traders would also know the meaning of crossovers between a slower MA versus a faster MA or the other way around.
Conclusion
This indicator is written to help me dollar cost average, I hope the explanation above is enough to describe to you how to use the indicator opportunistically. I regret that for this indicator I decided to not share its source code. The logic for this indicator is described above which I'm sure can be a base for anyone to write their own version of it.
Above said, I wish everyone a 528 vibe of wealth and prosperity. Cheers!