How to Use Market Pulse
Last updated
Last updated
The Market Pulse graph is a dynamic representation of market trends. It uses color-coded lines to depict different trends over the last 30 periods (days or hours, depending on the selected chart).
Cyan Line: Uptrend - When the short-term Moving Average (MA) is greater than the mid-term, which is greater than the long-term MA.
Green Line: Uptrend-Retrace - When the mid-term MA surpasses the short-term but remains above the long-term MA.
Yellow Line: Sideways-Consolidation - When the mid-term MA is above the long-term MA, which is above the short-term MA.
Blue Line: Sideways-Reversal - When the long-term MA is above the short-term MA, which is above the mid-term MA.
Orange Line: Downtrend - When the long-term MA is above the mid-term MA, which is above the short-term MA.
X-Axis: Progression in time
Y-Axis: Number of coins
Hover over the graph lines to reveal the specific trend at any point. Additionally, the current number of each trend is displayed on the Trend Cards for a quicker glance on current market sentiment.
The purpose of this feature is to assist you in discerning the overall mood of the market, thereby guiding your trading choices, like recognizing when to refrain from tradingβfor instance, when there is a significant difference between the number of coins in uptrend and downtrend.
The nuances of this tool become clearer with regular use and observation, as you'll begin to spot emerging patterns, such as a rise in uptrend-retrace coins concurrent with a drop in uptrend coins, or an increase in sideways-reversal coins as downtrend coins diminish.
Feel free to utilize this tool in a way that suits your strategy.
The Market Pulse will help us be early during market transitions - early before new uptrends and early before new downtrends.
This will also enable us to be aggressive during uptrends and defensive during downtrends.
Environment > Setup
We can look at it in two ways:
What is prevailing
Trend crossovers
Usually, when reversing, you can see sideways reversal cross the downtrend.
Downtrend decreasing (orange going down) followed by sideways reversal (blue) crossing orange indicating that there might be a reversal stemming from a decrease in downtrend then followed by uptrend (cyan) crossing orange indicating that the sideways reversal coins are turning into uptrends.
In the ideal world, where everything goes up, the sequence on the Market Pulse should be just pure exchange between cyan and green (crossovers).
Consider this Market Pulse illustration.
There is a H4 sharp downtrend decrease with no real explanation why.
Now let's check H1.
H1 Market Pulse shows 50% uptrend.
Now maybe the H1 is shifting and thus, driving the H4 downtrend to decrease.
From here on, ideally, you would want to get involved in H1 setups.
The question is, which coin should you pick?
That will be up to you. You can sort them based on your own criteria, check which has a better structure, better RR, and other discretionary things you can think of.