How to follow up the monthly volume and price rise + weekly moving average golden cross + daily long Yang reverse?

A confirmed bullish trend emerges when monthly volume and price rise, the weekly golden cross validates momentum, and a daily long Yang candle signals strong buying pressure—aligning multiple timeframes for high-probability entry. (154 characters)

Jul 26, 2025 at 05:14 am

Understanding the Monthly Volume and Price Rise in Cryptocurrency Trading

In cryptocurrency trading, tracking monthly volume and price rise is essential for identifying long-term bullish momentum. A consistent increase in both price and trading volume over a month indicates strong market confidence and accumulation by large investors. When analyzing this pattern, traders should focus on on-chain data and exchange volume metrics to confirm the legitimacy of the rise. For example, using platforms like CoinGecko, Glassnode, or TradingView, you can pull up monthly candlestick charts and overlay volume bars. A genuine monthly volume and price rise will show green monthly candles accompanied by higher volume bars compared to previous months. This signals that demand is outpacing supply. It is critical to verify that the volume surge is not due to a single large pump but reflects sustained buying activity. Traders should also check for whale wallet movements via blockchain explorers to avoid false signals caused by market manipulation.

Identifying the Weekly Moving Average Golden Cross

A weekly moving average golden cross occurs when the short-term moving average crosses above the long-term moving average on the weekly chart. The most commonly used combination is the 50-week moving average (MA) crossing above the 200-week MA. This technical pattern is considered a strong bullish signal in crypto markets, which are highly volatile and trend-driven. To spot this crossover:

• Open the weekly chart of the cryptocurrency on TradingView or Binance’s advanced charting tools.
• Apply two moving averages: one set to 50 periods and the other to 200 periods.
• Wait for the 50-week MA line (green) to move above the 200-week MA line (red).
• Confirm the cross is supported by rising volume and price momentum.

It is important to note that the golden cross on the weekly chart carries more weight than on lower timeframes due to the longer data period. Traders should avoid acting on early signs of a cross; instead, wait for full candle closure to prevent false triggers. Additionally, use Relative Strength Index (RSI) on the weekly chart to ensure the asset isn’t already overbought, which could limit upside potential.

Recognizing the Daily Long Yang Reverse Pattern

The daily long Yang reverse refers to a bullish reversal candlestick pattern on the daily chart, where a long green (Yang) candle emerges after a downtrend, signaling a shift in market sentiment. This candle typically has a small or nonexistent upper shadow, a long body, and ideally a lower shadow, indicating buyers took control throughout the session. To identify this pattern:

• Monitor the daily chart for a prolonged bearish trend.
• Look for a large green candle that closes near its high.
• Confirm the candle breaks key resistance levels or closes above the previous day’s high.
• Check volume: the reversal candle should have significantly higher volume than recent days.

This pattern is especially powerful when it coincides with oversold conditions on the daily RSI (below 30) or a bullish divergence. Traders should not rely solely on the candle’s appearance; they must cross-verify with support levels, order book depth, and funding rates on futures markets to avoid traps. For instance, on Bybit or Binance, check if long liquidations are increasing, which may confirm renewed buying pressure.

Combining the Three Indicators for Entry Confirmation

To increase the probability of a successful trade, all three signals—monthly volume and price rise, weekly golden cross, and daily long Yang reverse—should align. This multi-timeframe confluence reduces false positives. Here’s how to execute this strategy:

• First, ensure the monthly chart shows a green candle with volume above average.
• Next, verify the weekly chart displays a confirmed golden cross with both MAs sloping upward.
• Then, on the daily chart, wait for a long Yang candle to close, ideally breaking a key moving average like the 50-day MA.
• Use Bollinger Bands to assess volatility contraction before the breakout.
• Enter a long position at the close of the daily Yang candle or on the next open.

Position sizing should be based on risk per trade (e.g., 1-2% of portfolio). Set a stop-loss below the low of the Yang candle or below the weekly support level. Use take-profit levels at recent swing highs or Fibonacci extensions (1.618 or 2.618). Enable trailing stops to capture extended trends if momentum continues.

Practical Steps to Monitor and Execute the Strategy

To implement this strategy effectively, traders need a systematic monitoring routine:

• Use TradingView alerts to notify you when the 50-week MA crosses the 200-week MA.
• Set up volume anomaly alerts on platforms like CryptoQuant for sudden monthly volume spikes.
• Bookmark key cryptocurrency pairs and review them every Sunday night (UTC) for weekly chart updates.
• On Mondays, check for daily candlestick patterns that formed over the weekend.
• Integrate Telegram bots or Google Sheets with API feeds to automate data tracking.

For execution, connect your exchange account to TradingView via Pine Script bots or use 3Commas, Shrimpy, or CoinRule for automated buys when conditions are met. Always backtest the strategy on historical data using Backtrader or QuantConnect to assess win rate and drawdown. Paper trade for at least one month before going live.

Frequently Asked Questions

What if the golden cross appears but volume is declining?

A golden cross with declining volume may indicate a weak bullish signal. It could be a bull trap, especially in low-liquidity altcoins. Always require rising volume on the weekly chart to validate the cross. If volume is flat or falling, treat the signal with caution and avoid large positions.

Can the daily long Yang reverse occur during a bear market?

Yes, it can, but such reversals are often short-lived without higher timeframe support. A standalone daily Yang candle in a strong bear market is likely a dead cat bounce. The presence of monthly and weekly bullish confirmations is necessary to distinguish a true reversal from noise.

How do I adjust this strategy for low-cap altcoins?

Low-cap coins are more volatile and prone to manipulation. Apply stricter filters: require on-chain transaction growth and exchange inflows from trusted sources. Use shorter MAs (e.g., 20/50-week) for golden cross detection due to faster price movements. Limit position size to reduce risk.

Is it necessary to use all three signals simultaneously?

While not mandatory, combining all three significantly improves accuracy. Acting on a single signal—like a daily Yang candle without weekly or monthly confirmation—increases the risk of entering during a countertrend. Confluence across timeframes enhances reliability.