CRYPTO CURRENCIES AND THE

CHAMELEON INDICATORS
Alex Cole

02/21/18
THE CRYPTO CURRENCY MARKET
Cryptocurrencies: 1549
Markets: 8992
Market cap: $508,821,984,696
24hr Volume: $23,548,413,670
BTC Dominance: 39.1%

02/20/18
TOP CURRENCIES BY MARKET CAP
Bitcoin: $199,180,335,720
Ethereum: $90,893,461,532
Ripple: $44,019,559,520
Bitcoin Cash: $25,683,809,869
Litecoin: $8,091,447,179

* Blue indicates ticker is on Bloomberg.

COINMAKRKETCAP.COM: CRYPTO CURRENCY MONITOR

3
CHAMELEON
INDICATORS
A colorful look at the CRYPTO CURRENCY market.

Alex Cole 02/21/18

 THE CHAMELEON TREND AND CHAMELEON
OSCILLATOR STUDIES
One of the most important benefits of visualization is that it allows us
visual access to huge amounts of data in easily digestible visuals.
Well designed data graphics are usually the simplest and at the same
time, the most powerful.
Centerline Digital. “The Importance of Data Visualization." April 28th 2015.
Slideshare.net.

WHAT WE’LL DISCUSS:

● The idea and creation
● Case studies and interpretation using Bitcoin, Ethereum, Ripple & Litecoin

5
TRYING TO MAKE SENSE OF ALL THAT’S OUT
THERE
When there is too
much on the chart:

Its hard to know

where to look and
what information is
important.

It can be difficult to
see the all
important price
action.

6
 SOLUTION: COMBINE COMMONLY ACCEPTED TA
PRINCIPLES INTO EASY TO READ VISUALS

The Trend Chameleon

▪ Moving Averages
▪ Moving Average Convergence Divergence
▪ Relationship of open prices to close prices

The Chameleon Oscillator

▪ RSI (Relative Strength Index)
▪ Stochastics
▪ Bollinger Bands

7
THE CHAMELEON INDICATORS

It now was possible

for me to see my
studies as I’d
intended on any
data series.

This chart of the

Chameleon Studies
has more
information than
our initial chart and
gives a complete
analysis of trend
and momentum.

8
 CASE STUDIES AND INTERPRETATION
The Chameleon Studies can be applied on any periodicity and across all asset classes.

The Trend Chameleon

▪ Combines several ideas to color code a security's price action
▪ Simple visual display uncovers actionable market trends
▪ The price chart is colored from bright green as the most bullish to bright red as the most
bearish.
The Chameleon Oscillator
▪ Combines multiple momentum indicators to provide readings of overbought and oversold
levels (It turns bright red when the most overbought signals are sent and bright green when most
oversold, with varying shades in between. )
▪ Signals bullish/bearish divergence from the Trend Chameleon to warn of potential price
reversal
▪ Will find support/resistance at zero when the trend in price is strong

9
BITCOIN – DAILY
The daily trend has been
bearish on bitcoin. You can
see the trend chameleon
depicts the changing trend
since the highs near
20,000. However, the latest
bar is neutral yellow.
The lower panel shows the
value of looking at the zero
line. As it should, when
trend is strong (bright
green) the oscillator finds
support at zero. In
December it struggled to
hold the zero line and the
change in trend followed
above. Now, we see that
the oscillator break above
zero preceded the neutral
yellow bar in the above
panel.

10
BITCOIN – INTRADAY

This is an intraday 120

minute chart of XBT.
Note the same
principles apply. See
the most recent strong
up trend and how the
oscillator largely finds
support at zero.
The end of the chart
shows how you can use
traditional oscillator
divergence. This is a
concern in the short
term for the strength of
the up trend.

11
ETHEREUM – DAILY
Ethereum fought the recent
downturn in the crypto
currency markets longer than
the other currencies.
Anecdotally, charts show that
trend line breaks are often
accompanied by color
change. This confluence of
technical events can increase
confidence. See the upper
panel.
Looking at the oscillator, we
see that it stayed above the
zero line during the main
move, with rallies off zero
providing possible entry
points. As Ethereum
corrected, the oscillator was
negative and found
resistance at the zero line.
Most recently, it has shown
some bullish momentum.

12
ETHEREUM – INTRADAY
The chart on the right is a
60 minute chart of
Ethereum. The main move
from the 14th to the 18th
was uncovered in bright
green. Since then,
Ethereum has struggled to
find a trend and we see this
in the Chameleon Trend
being unable to hold any
color for any length of time.
Most recently however,
there has been a strong
move down and the
Chameleon is strongly
bearish.
Looking at the oscillator, we
will need to see if the
oscillator gets turned away
by the zero line from below.
This could signal more
bearish price action.

13
RIPPLE – DAILY
The daily chart on the
right of Ripple shows
how the oscillator failed
to rally off zero in mid
January as it should
have if the trend was
strong (circled). This
preceded the trend
color change above.
Most recently, the
oscillator has been able
to break above zero. If
the oscillator can rally
off zero here we could
be seeing the end of
the correction, leading
to trend change above.

14
RIPPLE – INTRADAY

On the right is a 240

minute chart of Ripple.
The trends are clearly
depicted here by the
Chameleon Trend
indicator and again you
can see the color
change aligning with a
trend line break.
Now, price is struggling
to stay bullish. Again,
the oscillator breaking
below zero preceded
the bearish colors in
the price panel.

15
LITECOIN – DAILY
LiteCoin is painting the
most bullish picture of
the currencies on a
daily chart. Having
corrected from highs
over 350 you can now
see that price is once
again trying to paint
bullish green bars. The
recent move of the
oscillator into positive
territory supports this.
Look for price to paint
steady green bars and
the oscillator to find
support at zero if an
uptrend is taking
shape.

16
LITECOIN – INTRADAY
On an intraday 240
minute chart, LiteCoin
has been bullish for
several days. Today
though, price seems to
be breaking support
AND we see the first
yellow neutral bar.

Oscillator divergence
warned that price could
retreat. The oscillator
has also significantly
broken the zero line to
the downside. Look for
further short term
bearish price action.

17
BIG PICTURE: BITCOIN – WEEKLY

This most recent correction

in Bitcoin was significant.
However, price has
maintained its brightest
green, indicating the bullish
trend is still in place.
The lower panel shows the
oscillator currently resting
at the zero line, where it
should in a correction of an
up trend. It will be very
interesting to note if the
oscillator rallies off the zero
line as it has each time
since the chameleon went
green in 2015.

18
 CHAMELEON INDICATORS

▪ Contact me to stay in touch acole9@bloomberg.net

▪ To see my bio on the MTA website
▪ click here

19