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RE: Steemit Crypto Academy Season 6 Week 2 - Crypto Trading Strategy with Triple Exponential Moving Average (TEMA) Indicator

in SteemitCryptoAcademy2 years ago

Greetings professor. I'm thinking there's a mixup with the resistance and support using TEMA which you've stated.

TEMA serves as a dynamic resistance in a bullish run when the price of the asset gets resisted at the TEMA line and that could be a beginning of a downtrend. In addition, TEMA also serves as a support in a bearish trend, the price is prone to bounce off the TEMA line, as such, that could be a beginning of an uptrend.

Earlier on, you said

For confirmation of a bullish trend, the price of the asset would be trading above TEMA. And for a bearish trend, the price of the asset would be trading below TEMA.

So I'm wondering, if in a bullish trend, the price is above the TEMA, how can it be resistance by the TEMA?

And if in a bearish trend the price is below the TEMA, how can it be supported by the TEMA?

I think it's probably the other way round. I'd appreciate clarifications.

Thanks.

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 2 years ago (edited)

So I'm wondering, if in a bullish trend, the price is above the TEMA, how can it be resistance by the TEMA?

For a clear uptrend, the asset would be trading above TEMA, when the market tends to change direction even in a bullish trend, the candlesticks appears below TEMA and find it hard to break above again. Such that a new trend is beginning. Same thing applies to the opposite trend. Thanks. You can check on the chart below to understand it better.

32FTXiZsHoAW6noHJDhrg3W8ZKHVFSsLYM859aTDCF8iErY3bCFZx9jcSsuq4GgCzDAgrddm6cgcMF6A2crMB3MCdTMScaARNAVZaQ23egCbVyq9zk37zR9sTy4oaLKuxsNjCnYFzb5X29HY.jpeg

The candlesticks were above TEMA earlier then comes below and was unable to return to trading above the TEMA. As such, TEMA serves as dynamic resistance and support as the price was unable to break through it again in an existing trend. I hope you get it now.

Okay. I get your point. Thanks for the explanation.

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