Knowledge Base

Unlock Machine Learning to Inform Your Crypto Strategy Without Python

The GNY Range Report Knowledge Base contains tutorials on how to make the most of the GNY Range Report, orientation videos on machine learning and blockchain technologies, and definitions of all of the charts and content featured in the GNY Range Report.

These three core videos will get you oriented for how to use GNY ML

Glossary

The GNY Historical Accuracy – 30 Days Chart is a historical record of how the Range Report’s machine learning-driven forecasts for the asset’s high and low volatility price bands and relative value fared versus the asset’s actual price moves over a span of 30 days.

Accompanying the chart is a 7-day table that details the actual high and actual low prices reached by the asset during the previous 7 days, plus what our predicted high and low zones were for each day of the same period.

The table also includes the MAPE % that our forecasts attained during the previous 7 days, on a day-by-day basis. The MAPE %, also known as the mean absolute percentage error, is a statistical measure of the prediction accuracy of a forecasting method. It represents the average of the absolute percentage errors of each entry in a dataset to calculate how accurate the forecasted figures were in comparison with the actual figures. The lower MAPE %, the better a model is able to forecast values.

MAPE was selected by the GNY team as a measure of prediction accuracy as it is a straightforward metric, with, for instance, a 5% MAPE representing the average deviation between the forecasted value and the actual value of 5%, regardless of whether the deviation was positive or negative. Our MAPE % calculation takes into account our daily predicted high and low zones for the asset and the actual high and actual low prices the asset subsequently reached.

The formula used to calculate MAPE is as follows: MAPE = (1/n) * Σ(|actual – forecast| / |actual|) * 100

The GNY accuracy rating for the last 7 days is listed beneath the 7-day table. This accuracy rating was arrived at by taking the mean absolute percentage error readings for the previous 7 days, averaging them, and then subtracting that average from 100% to provide an easy-to-understand rolling accuracy score.

The Candles, Average Price chart displays the open, high, low, close, and average price of the asset across one-hour, six-hour, and one-day intervals. The chart can display this data across a three hundred and sixty-five-day period if desired.

The chart incorporates market data from our proprietary data warehouse, and in its calculations, it takes into account the price movement within both candles and wicks.

Providing deeper insight than that which can be gained from standard candlestick charts, the price point data displayed within this chart may help traders better understand the current market trend and establish where the price is heading next.

The McClellan Oscillator is a smoothed momentum indicator that aids traders in assessing the strength of an asset’s current trend. Our McClellan Oscillator chart incorporates market data from our proprietary data warehouse and displays it as an oscillating line graph chart overlaid with a horizontal zero line.

Over a period of time, the rate of change in an asset’s price will cause the graph’s line to oscillate above and below the zero line. This movement above and below the zero line is what produces the chart’s trading signals.

When the oscillating line moves from below the zero line to above it, that is a bullish signal for traders seeking an entry. Conversely, when the oscillating line moves from above the zero line to below it, this indicates that a bearish move may be ahead and traders should consider their positions. Stronger signals are generated when the oscillating line moves from -100 or below to above the zero line. Conversely, if the oscillating line moves from 100 or above to below the zero line, a stronger sell signal is generated.

Weaker buy signals are produced when the oscillating line positioned above the zero line makes a move down towards the zero line but turns upwards again before crossing into negative territory. Weaker sell signals are produced when the oscillating line positioned below the zero line makes a move up towards the zero line but turns downward again before crossing into positive territory.

Reading the McClellan Oscillator chart in conjunction with a candlestick chart to judge the trending price action may also reveal divergence or reversal signals. For example, when bullish price action reaches a new higher high but is not confirmed by a new high on the McClellan Oscillator chart.

Bullish Divergence: Lower lows on the candlestick chart and higher lows on the McClellan Oscillator

Bearish Divergence: Higher highs on the candlestick chart and lower highs on the McClellan Oscillator

Hidden Bullish Divergence: Higher lows on the candlestick chart and lower lows on the McClellan Oscillator

Hidden Bearish Divergence: Lower highs on the candlestick chart and higher highs on the McClellan Oscillator.

It is recommended to consult additional charts within the Range Report such as the Average Directional Movement Index and RSI, to help confirm the strength of the McClellan Oscillator chart’s signals.

The RSI chart, or relative strength index chart, reacts to the speed and size of change in the asset’s price movements over one-hour, six-hour, and one-day intervals. The chart can display its data across numerous selectable time periods, up to a three hundred and sixty-five-day period if desired.

Clicking on the right-hand side of the chart and dragging the highlighted area the desired number of periods to the left allows further personalisation of the viewing period. This facility allows short-, medium-, and longer-term traders to view the chart within the period they most commonly use.

  • Short-term Day traders often set it at a low period, in the range of 9 to 11.
  • Medium-term swing traders frequently use the period setting of 14.
  • Long term position traders will often use higher settings with periods in the range of 20 to 30+.

The chart incorporates market data from our proprietary data warehouse and is displayed as a line graph chart with a scale of zero to 100, illustrating the relative strength of the asset.

The position of the oscillating line can aid you in identifying whether the asset is regarded as underbought or overbought.

When the RSI reading is 30 or below, it signals underbought; increasing the possibility of a price reversal to the upside. This may appeal to traders looking for an entry.

When the RSI reading is 70 or above, it signals overbought; increasing the possibility of a price reversal to the downside. This may appeal to traders looking for an exit.

A trend reversal may be confirmed when the RSI shows a divergence, where an asset’s price moves one way and the RSI moves in the opposite direction. For example, a bullish divergence occurs when an asset’s price makes lower lows but its RSI chart makes higher lows. This can be a signal that downward momentum is weakening and a bullish reversal may soon follow.

An asset’s price moves in the direction of the trend. Trading with the trend, especially if it is a strong trend, may help a trader reduce potential risks and increase potential profits.

The Average Directional Movement Index chart or ADX chart is based on the asset’s one-hour, six-hour, and one-day price range expansion across a span of 30 days. The chart can display its data across numerous selectable time periods, up to a three hundred and sixty-five-day period if desired.

The chart incorporates market data from our proprietary data warehouse and is displayed as an oscillating line graph chart with a scale of zero to one hundred, illustrating the overall trend strength. The position of the oscillating ADX line can aid you in identifying whether a trend is present and, if present, whether it is strong or weak.

A rising ADX line indicates that the current trend is strengthening, no matter whether that trend is bullish or bearish. Conversely, a descending ADX line indicates that the current trend is weakening (not necessarily reversing), no matter whether that trend is bullish or bearish.

  • Any reading below 20 signals that a trend is absent.
  • Once the oscillating line breaks above 25 it is a signal for the commencement of a trend.
  • From 25 to 50 is classified as an indicator of a strong trend.
  • A reading of 50 to 75 indicates a very strong trend.
  • While 75 to 100 is a signal for an extremely strong trend,

An absent trend indicator (below 20) does not mean that the asset’s price is not moving; it may be moving but gearing up for a trend change.

Traders may wish to consider trend trading strategies from an ADX reading of 25 and above particularly if it rises by 5+ points on the scale in a single period.

When breakouts occur on an asset’s price chart it may be helpful to consult the ADX chart to assess whether it indicates if the trend is strong enough for the price to continue the trend after the breakout.

The Moving Average Convergence/Divergence chart, also known as the MACD chart, is a momentum indicator that uses the relationship between two exponential moving averages to provide insight into market trend accelerations. The chart incorporates market data from our proprietary data warehouse and is displayed as a line graph chart with a supporting histogram.

On the line graph chart, there are two oscillating lines: one labeled MACD Signal and the other labeled MACD. The MACD line is a subtraction of the 26-period exponential moving average (EMA) from the 12-period EMA. The MACD Signal line is a nine-day EMA of the MACD line. A trader should focus on both the level and direction of these MACD Signal and MACD lines.

When the MACD line rises above zero, it is considered bullish, while dropping below zero is seen as bearish.

If the MACD line crosses above the MACD Signal line, then this indicates upward momentum in the asset’s price, which may appeal to traders looking for an entry. The further below the zero line that this cross occurs, the stronger the entry signal.

Conversely, if the MACD line falls below the MACD Signal line, that indicates downward momentum, which traders may take as an exit signal. The further above the zero line this cross occurs, the stronger the exit signal.

Our MACD chart also contains a histogram that further illustrates the daily distances between the MACD and MACD Signal lines. When the MACD line sits above the MACD Signal line, a histogram bar will sit above the zero line. The further the MACD line is above the Signal line, the taller the bar and the more upward momentum is present in the market.

Reading the MACD chart in conjunction with a candlestick chart to judge the trending price action may also reveal stalling or reversal signals. For example, when bullish price action reaches a new higher high but is not confirmed by a new high on the MACD chart. Consulting additional charts within the Range Report such as the Average Directional Movement Index and RSI charts will also help confirm the strength of the MACD chart’s signals.

Volume is an important market component that every trader should factor in, as you will be buying or selling into that volume when you make your entries and exits. The On Balance Volume chart, or OBV chart, reacts to the buying and selling pressure of the asset, adding volume during up periods and subtracting volume on down days.

The OBV is displayed as an oscillating line that is tagged with the relevant volume figures related to each individual period.

When volume within up periods outstrips volume within up periods, then the OBV line rises, indicating that buying pressure has increased. When both OBV and price are making higher highs and higher lows, the upward price trend is likely to continue.

When volume on down days outstrips volume on up days, then the OBV line descends, indicating that selling pressure has increased. When both OBV and price are making lower highs and lower lows, the downward price trend is likely to continue.

Divergence is a situation where price movement is not confirmed by the OBV chart and may indicate a potential trend reversal. For example, a negative divergence where the price continues to make higher highs and OBV fails to make higher highs signals that an upward price trend is about to stall or reverse. Conversely, a positive divergence where the price continues to make lower lows and OBV fails to make lower lows may signal that the downward trend may be about to stall or reverse.

The OBV chart can often provide clues as to the intent of market players before the price action generates a buy or sell signal. This insight is particularly useful for traders considering entries or exits close to known major price support/resistance levels or trades close to price levels as indicated on the asset’s Fibonacci Retracement chart.

The Stochastic chart, also known as the Stochastic Oscillator chart reacts to the asset’s most recent closing price when compared to its range. The chart incorporates market data from our proprietary data warehouse and is displayed as a line graph chart with a scale of zero to one hundred, illustrating the relative strength of the asset.

On the chart, there are two oscillating lines, one labeled Stochastic K and the other labeled Stochastic D. The K line represents the current measure, and the D line represents a moving average of the most recent three days.

The position of the oscillating lines can aid you in identifying whether the asset is regarded as underbought or overbought.

When the Stochastic reading is at 20 or below, it signals underbought; increasing the possibility of a price reversal to the upside. This may appeal to traders looking for an entry.

When the Stochastic reading is at 80 or above, it signals overbought, increasing the possibility of a price reversal to the downside. This may appeal to traders looking for an exit.

If the Stochastic reading drops from above 80 to below 50, it indicates that the price may move lower. Conversely, if the reading rises from below 20 to above 50, it signals the price may move higher.

When the two stochastic lines cross, reversal signals are also generated. If the Stochastic K line crosses below the Stochastic D line, a possible sell signal is generated. Conversely, if the Stochastic D line crosses below the Stochastic K line, a possible buy signal is generated. These crossovers may appear anywhere on the chart’s scale of zero to one hundred; however, signals above the lines at 20 and 80 are considered to be stronger.

Consulting the Stochastic chart in conjunction with a candlestick chart to judge the trending price action may also reveal reversal signals. For example, when a bearish trend reaches a new lower low but the Stochastic chart displays a higher low, it may be an indicator that bearish momentum is becoming exhausted and a bullish reversal is pending.

The Bands chart is a trendline tool that helps traders determine whether an asset’s prices are high or low on a relative basis with a view to selecting potential entry and exit points. Our Bands chart incorporates market data from our proprietary data warehouse and displays as a candlestick chart overlaid with three oscillating lines, or bands.

The middle band is a simple moving average. The upper and lower bands positioned above and below the moving average band are driven by a particular number of standard deviations of price. By comparing the positions of the upper and lower bands to the asset’s price position candlesticks, a trader may be able to determine if the asset’s price is relatively low or relatively high.

When the price continually touches the upper band, it can indicate an overbought signal, increasing the possibility of a price reversal to the downside. This may appeal to traders looking for an exit. However, should the price continually touch the lower band, it can indicate an oversold signal; increasing the possibility of a price reversal to the upside. This may appeal to traders looking for an entry.

If the price moves out of the bands continually in one particular direction, it may indicate that the asset is in a strong trend. However, if the price move outside of the band is short-lived, then the strong trend indication should be disregarded.

When the bands move apart by an unusually large amount, volatility is increasing and the current trend may be ending, so traders may wish to consider their positions.

Conversely, the bands tightening around the moving average band during a period of low volatility, may signal upcoming volatility and a sharp price move in either direction. Greater price moves may happen if the bands are the narrowest they have been for the last 90, 180, or 365 days. A sharp move following band tightening may be the beginning of a new trend; however, it may also be a false move in the opposite direction, which then reverses before the actual trend begins.

It is recommended to consult additional charts within the Range Report, such as the Moving Average Convergence/Divergence (MACD), On Balance Volume, and RSI, to help confirm the strength of the Bands chart’s signals.

The Ultimate Oscillator chart reacts to the accumulation and distribution of the asset over short, medium, and long-term periods. Due to this multi-timeframe setup, the Ultimate Oscillator chart exhibits lower volatility than similar momentum indicators, and thus many traders feel this results in fewer invalid signals being displayed.

Our Ultimate Oscillator chart incorporates market data from our proprietary data warehouse and displays it as a line graph chart with a scale of zero to 100, illustrating the price momentum of the asset.

The position of the oscillating line on the chart can aid you in identifying whether the asset is regarded as underbought or overbought. When the reading is at 30 or below, it signals underbought, increasing the possibility of a price reversal to the upside. When the reading is at 70 or above, it signals overbought, increasing the possibility of a price reversal to the downside.

A trend reversal may be confirmed by the Ultimate Oscillator when it shows a divergence, where an asset’s price moves one way and the oscillating line does not move in a similar direction. This may help traders decide their next move.

For example, a bullish divergence occurs when an asset’s price chart makes lower lows but the Ultimate Oscillator does not show lower lows. Traders may consider taking an entry position if the Ultimate Oscillator reading is below 30 when this occurs and it then rises above the divergence high.

Conversely, a bearish divergence occurs when an asset’s price chart makes higher highs but the Ultimate Oscillator does not show higher highs. Traders may consider taking an exit position if the Ultimate Oscillator reading is above 70 when this occurs and then descends below the divergence low.

Generated directly from GNY’s proprietary data warehouse, the Chaikin Oscillator, Actual Volume chart has the ability to be viewed over a 365-day span. The chart is displayed as an oscillating line graph chart overlaid with a horizontal zero line, which is known as the accumulation-distribution line.

On the chart, there are two oscillating lines, one labeled Chaikin AD and the other labeled Volume. The Chaikin AD line represents the rate of change in the asset’s accumulation/distribution, and the Volume line represents the amount of the asset that changed hands during the selected time period. Although the Volume line is not required for one to read the Chaikin Oscillator, it is included to add additional insight into the ongoing state of the market for the asset in question.

The Chaikin Oscillator measures the momentum of the accumulation/distribution (buying and selling pressure) of an asset based on the Moving Average Convergence Divergence (MACD). This indicator can be helpful when it comes to identifying and verifying price trends and reversals.

Over a period of time, the rate of change in an asset’s accumulation/distribution will cause the Chaikin AD line to oscillate above and below the zero line. This movement above and below the zero line is what produces the chart’s trading signals.

When the Chaikin AD oscillating line moves from below the zero line to above it, it signals that an accumulation trend is ongoing, which is a bullish signal for traders seeking an entry. Conversely, when the oscillating line moves from above the zero line to below it, this indicates that a distribution trend is ongoing and traders should consider their positions.

Weaker buy signals are produced when the oscillating line positioned above the zero line makes a move down towards the zero line but turns upwards again before crossing into negative territory. Weaker sell signals are produced when the oscillating line positioned below the zero line makes a move up towards the zero line but turns downward again before crossing into positive territory.

Reading the Chaikin Oscillator chart in conjunction with a candlestick chart to judge the trending price action may also reveal divergence or reversal signals.

Bullish Divergence: Lower lows on the candlestick chart and higher lows on the Chaikin Oscillator

Bearish Divergence: Higher highs on the candlestick chart and lower highs on the Chaikin Oscillator

It is recommended to consult additional charts within the Range Report such as the Moving Average Convergence/Divergence (MACD) and RSI, to help confirm the strength of the Chaikin Oscillator chart’s signals.

The Parabolic SAR (stop and reverse) indicator chart helps traders determine price trends for the asset.

Generated directly from GNY’s proprietary data warehouse, the chart features signals for trend establishment and trend reversal across a 7- to 365-day span. Clicking on the right-hand side of the chart and dragging the highlighted area the desired number of periods to the left allows further personalisation of the viewing period. This facility allows traders to view the chart within the period they most commonly use.

The chart displays as a price candlestick chart with overlaid indicator dots, either above or below the asset’s price.

Uptrend signals occur when the dots move from above the price to below the price and continue to appear below in a sustained manner.

Downtrend signals occur when the dots move from below the price to above the price and continue to appear above in a sustained manner.

Generally, three or more dots sustained together either above or below the candlesticks increase the relevant signal’s strength.

The Parabolic SAR chart constantly generates signals. Higher-quality Parabolic SAR signals are generally produced when a significant trend is present or develops directly following a signal. It is advisable to consult additional charts within the Range Report such as the RSI, Stochastic, McClellan Oscillator, and Moving Average Convergence/Divergence (MACD) to help confirm the strength of each Parabolic SAR signal.

The Fibonacci Retracement chart is a useful tool for traders seeking to identify support and resistance levels for an asset’s price.

The tool consists of a 7- to 365-day price candlestick chart for the asset overlaid with potential retracement lines. These horizontal lines intersect the trend line at the levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%. The lines are based on the mathematical relationship between numbers in the famed Fibonacci sequence.

Over a period of time, an asset’s price will often retrace a percentage of the previous trend before continuing its move in the original direction. Many traders believe that these retracements follow the Fibonacci sequence. For those who follow that logic, the retracement lines on our Fibonacci chart may be used to indicate support and resistance levels (price targets).

When an asset’s price reaches a Fibonacci retracement level, it may reverse or stall, opening up the potential for a beneficial trade. For example, an asset’s price could be dropping, and the trader might notice it getting close to the 61.8% Fibonacci retracement level. The trader may feel that the downward price action will begin to reverse once it hits the 61.8% level, so this is where they may set their buy order.

It is advisable to consult the Fibonacci Retracement chart in conjunction with additional charts within the Range Report such as the Ultimate Oscillator and RSI, so as to gain a further understanding of market trends.

The Hikkake pattern indicator chart helps traders anticipate breakouts in the asset’s price movement.

There are two types of hikkake patterns, a bullish hikkake pattern and a bearish hikkake pattern. Hikkake patterns include a volatile move in the asset’s price in one direction followed by a dramatic reversal. This twitch can be dangerous for traders caught on the wrong side of the trade while attempting to trade the upcoming price trajectory.

Recognising Hikkake pattern formation allows traders to avoid or take advantage of a Hikkake trap. However, many traders struggle to recognise the unique Hikkake pattern candlestick setup when it occurs, and many more traders misidentify certain candlestick movements as Hikkake pattern setups. Our Hikkake pattern indicator chart takes the guesswork out of recognising this particular candlestick setup. The chart also indicates those tricky times where Hikkake moments were forming but did not fully complete the candlestick pattern.

The Coppock Curve chart is a smoothed momentum indicator that highlights shifts in the long-term trend of an asset. Traders that consider this indicator helpful when it comes to identifying long-term buying opportunities generally prefer to select a long period when viewing it. Generated directly from GNY’s proprietary data warehouse, our Coppock Curve chart has the ability to be viewed over a 365-day span.

The Coppock Curve chart is displayed as an oscillating line graph chart overlaid with a horizontal zero line. Over a period of time, the rate of change in an asset’s price will cause the graph’s line to oscillate above and below the zero line. This movement above and below the zero line is what produces the chart’s trading signals.

When the oscillating line moves from below the zero line to above it, that is a bullish signal for traders seeking an entry. Conversely, when the oscillating line moves from above the zero line to below it, it indicates that a bearish move may be ahead and traders should consider their positions.

Weaker buy signals are produced when the oscillating line positioned above the zero line makes a move down towards the zero line but turns upwards again before crossing into negative territory. Weaker sell signals are produced when the oscillating line positioned below the zero line makes a move up towards the zero line but turns downward again before crossing into positive territory.

Since the Coppock Curve is a long-term lagging indicator, it is advisable to consult additional charts within the Range Report such as the RSI, Stochastic, McClellan Oscillator, and Moving Average Convergence/Divergence (MACD) as extra confirmation for your entry and exit points.

The Relative Returns chart is a benefit analysis tool that helps traders who are considering investing in or divesting from certain assets to compare their performance on a relative basis. Our Relative Returns chart incorporates market data from our proprietary data warehouse and displays as an oscillating line graph chart overlaid with a horizontal line. The dotted zero line denotes zero percent change or a neutral price performance.

When the oscillating line of a particular asset ranges below the zero line, that shows the asset has performed negatively. Conversely, when the oscillating line of a particular asset ranges above the zero line, that shows the asset has performed positively.

The Select Tokens dropdown provides you with toggles that allow you to select an individual asset for close analysis or select a group of assets to allow you to compare and contrast return performance.

The Select Period dropdown provides you with a selection of historical time period windows within which to view the return data.

Opportunity cost is a term used to describe a potential benefit that someone loses out on when selecting a particular option over another. If, for example, you sink your investment funds into BTC, you cannot spend those funds on ETH. Hypothetically, should ETH return more than BTC during the period you are holding BTC, then you have just experienced the opportunity cost of selecting BTC. Studying the Relative Returns chart may help traders make better investment choices, primarily by considering the alternatives so that they may avoid opportunity cost.

The Token Correlations table represents the extent to which any two particular assets are linearly related in price movement over a selected period of time. Our Token Correlations table incorporates market data from our proprietary data warehouse and displays as a heatmap, with cell value annotations as a double encoding of the correlation value.

The table is divided diagonally, with all the cells on the left hand side of the diagonal divide detailing the correlations for 2022 and all the cells on the right hand side of the diagonal divide detailing the correlations for 2023 to date.

As a rule of thumb, a correlation value in excess of 0.75 shows a strong relationship between the price movements of two assets.
0.5 to 0.75 indicates a moderate relationship.
A value between 0.25 and 0.5 indicates a weak relationship.
Any value below 0.25 indicates a negligible relationship.

Understanding the degree to which asset prices move together or against each other may help traders minimize risk and maximize returns from their investment choices.

Contact

GNY.io Limited and GNY.io Consulting Limited are committed to customer satisfaction. If you need to get in contact with us please choose one of the following options:

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