The Crypto State Indicators act as a full life-cycle, indicating the health of your cryptocurrency. They are designed to tell you, at a glance, exactly where any cryptocurrency stands relative to TradeSmith’s proprietary algorithms.
These signals indicate the current health of the cryptocurrency (performing well, in a period of correction, or stopped out).
The CSI will tell you one of five things:
|Indicates the cryptocurrency is performing well and has not corrected below its recent high. If a cryptocurrency has not yet hit this price, it is still on an uptrend, and it’s safe to keep holding it.|
|The cryptocurrency pulled back into the Yellow Zone but is still trending upwards. This indicates that the position has corrected somewhat below a recent high. It has not yet hit its stop price.|
|The cryptocurrency pulled back into a Yellow Zone and is moving sideways. The position has corrected somewhat below a recent high. It has not yet hit its stop price. It isn’t trending upwards nor downwards.|
|The cryptocurrency pulled back into a Yellow Zone and is trending downwards. This indicates that the position has corrected somewhat below a recent high, and it has not yet hit its stop price but is moving downward.|
|The cryptocurrency has hit its CSI Stop Loss and is now in the Red Zone. This indicates that the cryptocurrency has corrected more than its VQ% below a recent high. The cryptocurrency is not behaving in a way that is usual based on its historical market trend.|
NOTE: Momentum is a key component of our Crypto State Indicator (CSI) system. The CryptoTradeSmith Crypto State Indicator (CSI) Entry signal is a very conservative signal. It requires a cryptocurrency to have made a bounce off the bottom of at least one Volatility Quotient (VQ) percentage and the cryptocurrency’s trend must be strongly positive.
How CSI Alerts Are Triggered
If the position has already moved more than its VQ% below a recent high, the CSI Stop Loss will trigger. It’s an indicator that the position has corrected more than what is normal for this cryptocurrency.
You may have a red CSI on cryptocurrencies you have just purchased. Our best recommendation in cases like this is to use a VQ alert.
Please keep in mind that a cryptocurrency needs at least 150 public trading days for a CSI trend to be calculated.