How to properly do a chart and trend analysis un LUNC Luna Classic or any other crypto using multiple time frame analysis, MTFA has been around for 60 years and can be used to analyze all markets like commodities, stocks, indexes and forex pairs. This method is fully documentd and references are at the bottom. Analyze LUNC Luna Classic or any other cryptocurrency with this method, including correlated cryptos like Bitcoin.
LUNC investors please do not post crappy charts like the two ones below it makes the LUNC community look ignorant and is ridiculous.
Solution:
Always use multiple time frame analysis and be consistent, day after day. Multiple time frame analysis is tried and true.
Use the default settings on the Binance charting platform. See green line plus two other smaller EMA settings. I use primarily green line.
Binance Charts
Click on dropdown menu (middle yellow arrow) and you can see all of the time frames.
H4 time frame in this case shows a trend in place but the D1 time frame is still not trending up. ALWAYS know the highest time frame that is trending up or down.
Default moving average settings:
With muitlple time frame analysis you always start with the largest time frames like W1 then drill down backwards through the trends. Not highest time frame tending or ranging.
When not to use multiple time frame analysis: After severe movements up or down or after important news, Let charts settle down for a day or two then restart the analysis and monitor retracement or consolidation cycles on smaller time frames, LUNC has high circulating supply so it always retraces after upward price spikes.
Option 2 for Charts Super Simple Setup...Only one EMA setting, this is the D1 time frame on LUNC.
Use Tradingview charting option for this
Use a 15 SMA and 3 smoothing EMA, very simple setup. Use with larger time frames linke W1 and D1, then drill down from there to lower time frames.
Besides Binance you can set up these moving averages on Coinmarketcap to access Tradingview charts or any other robust crypto platfoms, just duplicate the settings on the EMAs shown above
Click on Tradingview tab to get the charts for EMA setup
Market Correlations:
If you want to know if LUNC is outperforming the gemneral market you can also chart BTC and compare the two:
Many crypto currencies track the market and Bitcoin is somewhat of a market bellweather. Look at the H4 time frame on BTC below LUNC is actually stronger than BTC and is somewhat ourperforming the market, on a relative basis.
REFERENCES
Forexearlywarning Paper on
Multiple Time Frame Analysis
Kathy Lien classic paper on
Multiple Time Frame Analysis
Bryan Shannon also teaches multipletime frame analysis and he is on Twitter:
Brian Shannon
If you are a forex of gold trader check out Forexearlywarning.com and our great trading system, we use mutiple time frame analysis every day for 28 forex pairs plus gold. We hope to bring our gold trading system to the blockchain some day, the system is outstanding and profitable and can be tokenized.
