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What is the Optimized Trend Tracker (OTT) Indicator?

Optimised Trend Tracker (OTT) is a trend following indicator that helps traders to identify the trend direction in the market and receive buy and sell signals.

Author ihy . This page was added on 2024-05-08 17:49:36. This page has been viewed 220 times. Category: Signal Robot

What is the Optimized Trend Tracker (OTT) Indicator? What is the Optimized Trend Tracker (OTT) Indicator?

What is the Optimised Trend Tracker (OTT) Indicator?

The Optimised Trend Tracker (OTT) is a trend following indicator that helps traders identify the trend direction in the market and receive buy and sell signals. OTT uses the moving average and ATR (Average True Range) indicators to filter out market volatility and show the trend direction.

How Does Optimised Trend Tracker Work?

Moving Average (MA): A moving average created from price data is used.
ATR (Average True Range): Used to measure volatility in the market.
ATR Calculation:
The ATR is added or subtracted from the moving average by a certain multiplier.
The trend line is determined by shifting the ATR in a positive or negative direction.
If the price is above this line, the trend is considered uptrend, and if it is below it, the trend is considered downtrend.
How to Use Optimised Trend Tracker
Buy Signal: Gives a buy signal when the price moves above the OTT line.
Sell Signal: Gives a sell signal when the price falls below the OTT line.
How to Use OTT Indicator in Cryptocurrencies?
In the cryptocurrency market, the OTT indicator can be used to determine the trend and generate buy and sell signals. For cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), it is usually used with the following settings:

Moving Average (MA) Period: 10-20 days
ATR Multiplier 1.5-2.5
ATR Period: 14 days
What is the Best Setting for Bitcoin and Ethereum?
Recommended OTT indicator settings taking into account volatility in Bitcoin and Ethereum:

MA Period 14 days
ATR Multiplier 2.0
ATR Period: 14 days

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