CCU 3-checkmark market bottom

We normally don’t review other channels but I think it’s a great idea to sometimes highlight what’s actually great out there too. Today we will look into one of the market bottom strategies presented by Steve from Crypto Crew University channel.

In his past 3 videos he’s been very focused on what most people are hoping to find: what’s going to be the market bottom and when.

We are at a stage where if you ask to almost anyone out there if this is the actual bottom people would most likely reply that we are getting close or that we have way to go. Most likely less than 1% would say the bottom is in already.

And you know what they say, “be the contrarian”, “don’t follow the masses”, etc. When BTC was at 69K the big majority was convinced that were on our way to 100K. He states that those same people are now shouting that we are going lower. So this is one of the arguments that has given him green flag to start hunting a potential market bottom in the vicinity of 2 weeks.

One of the indicators that he pulls in to find market bottoms with the most accuracy based on past performance is the combination of MA + RSI + Stock RSI in the 2D timeframe.

The performance seems pretty reasonable so I decided to implement it so we can back test it and even use it with TV alerts.

2018 and 2020 market bottoms

Instead of adding one by one each indicator and keeping an eye on them now you can use the indicator we build to get notified when the 3-checkmarks are green. You can use TradingView alerts and backtest it.

Strategy

  • price needs to be below 200 MA
  • RSI < 26
  • stochastic rsi both lines below 20
  • price should not be crossing the MA ( I added this to remove one signal that Steve also manually removed in the video)

Indicator parameters

  • RSI 14
  • stochastic RSI 3 3 14 14
  • MA 200
  • all in 2 day timeframe and using the close as source

How to use

  • add to the indicator to a chart and select INDEX:BTCUSD as the symbol (all time historic values from TradingView)
  • set the timeframe to 2D

Disclaimer: I didn’t design this strategy, I’m only sharing a free PineScript implementation I built to allow any users to follow the strategy in an easier way.

Updated on July 1, 2022

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