Using Mayer Multiple Price Bands to Trade Bitcoin

in LeoFinance21 days ago (edited)

Using Mayer Multiple Price Bands to trade Bitcoin.




First introduced by Bitcoin investor Trace Mayer, the Mayer Multiple is a multiple of the current Bitcoin price over the 200-day moving average.

By buying Bitcoin whenever the Mayer Multiple is below 2.4, the best long-term results are achieved.

Mayer Multiple Chart showing the 2.4 line.

The Mayer Multiple has since been modified into price bands that clearly display overbought/oversold conditions to Bitcoin day traders.

As a result, using Mayer Multiple Price Bands has become an extremely popular strategy to trade Bitcoin.

What are Mayer Multiple Price Bands?

Mayer Multiple Price bands are a way to measure the current price of Bitcoin against its 200-day moving average.

Relative to where price sits within the brands, they visually display when Bitcoin is overbought or oversold.

As the multiplier is derived from a long-term moving average, they more effectively display historical price movements over the long term.

Do Mayer Multiple Price Bands work on Bitcoin?

Yes, Mayer Multiple Price Bands work extremely well on Bitcoin.

The indicator gives excellent insights into the future direction of Bitcoin, including historically proven tops and bottoms.

As you can see from one of our own LeoFinance analysis blogs, the Mayer Multiple Price Bands correctly predicted the Bitcoin bottom in 2020.

At that time, you can see that it showed Bitcoin at a prime buying spot right before the next major leg up.

If only you could go back in time and trade that signal today.

The best Mayer Multiple Price Band script on TradingView

The best Mayer Multiple Price Band script on TradingView, comes from the user jaggedsoft.

You can access the script for free by clicking that link to TradingView and adding it to your own Bitcoin chart as you please.

Mayer Multiple Price Bands on my Bitcoin chart.

As Bitcoin becomes a more mature asset, we’re seeing its rips and crashes become less pronounced.

To optimise your results, you can consider narrowing your threshold for overbought/oversold conditions and run tests based on these new settings.

Once you find the optimal settings, why not help the rest of the LeoFinance community out by leaving your thoughts in a comment below.

Best of probabilities to you.




Direct from the desk of Dane Williams.

Why not leave a comment and share your thoughts on using Mayer Multiple Price Bands within the comments section below? All comments that add something to the discussion will be upvoted.

This Mayer Multiple Price Bands blog is exclusive to leofinance.io.

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How well does this work on things besides BTC? I think if you only look at it relative to the 200 day moving average then it might be skewed by the fact that BTC has been moving exponentially upwards since its inception on a long term chart.

Posted Using LeoFinance Beta

Its popularity has definitely come because people are using it on Bitcoin.

And yep, the results are definitely skewed because Bitcoin is in such a strong, long term bullish trend.

Bitcoin is trending up > so people buy Bitcoin > then say that the Mayer Multiple Price Bands work > so they keep buying Bitcoin.

A self-fulfilling prophecy if you will.

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I have wondered about this indicator. Thanks for the explanation. Seems to be a combo of an RSI and 200 period SMA. Reblogging for the https://coin-logic.com audience. It will show on the front page rotating feed!

Posted Using LeoFinance Beta

Cheers for giving it a share.

I hadn't had a chance to look into the coin-logic project before now, but definitely like what you're doing :)

Keep it up!

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