Another Great Breakout Trade
Litecoin finally broke out from a bull wedge pattern it has been forming over the past few days. As with this post, I'm going to discuss here how I traded it!
This index is a weighted average of the top 5 altcoins by market capitalization.
Since this changes often, the index is updated weekly. You can think of it as the S&P 500, but for altcoins.
Itʼs extremely useful to get & feel for the flow of funds between bitcoin and the other altcoins.
With the Kovach Crypto Spread, we can visualize the returns on Bitcoin vs the top altcoins by market capitalization. Since the market capitalization changes frequently, this indicator is updated weekly.
If the indicator is in positive, bitcoin is providing better returns than the altcoins.
If the indicator is negative, the converse is true.
Copyright ©2017 QuantGuy • All Rights Reserved.