On this blog I’ll post short term trading signals for the new digital currency Bitcoin traded at the new MTGox exchanges based in Japan. I will keep you updated on the market positions and sometimes I will comment on recent market activity.
I’ll follow the BTC/USD cross ratio on two charts, daily for longer investment and hourly for short term opportunities. I’ll use two technical indicators, ALMA moving average and Inverse Fisher Transform RSI.
Developed by John Ehlers, the RSI-based inverse Fisher Transform is used to help clearly define trigger points. First, a specified length RSI is computed and adjusted so that the values are centered around zero. The inverse transform is then applied to these values that will range from -1 to +1; when the oscillator will cross above -0.5 it’s a buy signal, viceversa when it will cross below +0.5 it’s a sell signal, as confirmation tool the signals generated by the inverse fisher transform RSI will be filtered out looking the direction of the ALMA moving average. More info about this moving average can be found at http://en.wikipedia.org/wiki/Arnaud_Legoux_Moving_Average