Introduction:

A big greetings in the third season of Cryptoacademy being the end of season 3 I want to say that cryptoacademy helped me enough to learn gave us important tools and above all the love and warmth of each of the teachers in this great community I want to say that I am very happy with these courses and today I will perform the task of Professor @asaj firstly the concept of random index and its explanation, I will talk a little about the index how to add the random index to a graph and differences between KDJ, ADX, ATR we start with the development.

In your own words, define the random index

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The random index is based on three prices the lows, the highs and the prices within a specific range i.e. there are two lines that mark us prices between 20 and 80 that tell us when the price is moving both ways bullish or bearish the indicator gives us starting positions of 0 and a final position of 100 this indicates that if the price is above 80 it means that we are in overbought positions and the price tends to go down after this movement and if it is below 20 then it is in oversold. it means that the price can go up suddenly.

Explain how it is calculated.

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THE price is calculated as follows we have the following factors that influence.

to perform this process we must obtain the following data:

Highest price, lowest price and the close of a time period you choose.

Next we are going to need the data: Reserve Value and the RSV of the digital asset.

Then we can check this mathematical equation:

RSV of the day = (Cn-Ln) / (Hn-Ln) X 100

Using the following formula we can calculate the determined values between K AND D

RSV K = 2/3 X K-value of the previous day + 1/3 X RSV of the day

RSV D of the day = 2/3 X D-value of the previous day + 1/3 X K-value of the day

RSV J = 3 X day's K-value - 2 X day's D-value

In this way we can obtain the desired KDJ results but they can only be used in the short and medium term.

Remember that these values are only used for

Is the random index reliable? Explain

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In the market there are many indicators that can analyze the market trends and thus allow us to perform a technical analysis approximate to reality as we all know cryptocurrencies are extremely volatile and susceptible to changes in the ecosystem, we can say that the "random index" is somewhat reliable because there is no 100% perfect indicator "we were all millionaires" that is to say we have to know the direction of a trend according to our technical analysis and fundamental analysis if we see potential in the market and we are indicating a favorable trend and all parameters are met in our favor then there is a large % of positive indicators for our future speculation in small and medium terms. If we can put a short very easily we will be victorious.

How to add the random index to a chart and what are the recommended parameters? (Screenshot required)

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First you start Tradingview.com section.

Second step go to Chart

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On the top right hand side on the + symbol we click on it to select the pair.

I chose the BTC/USDT pair from the Binance Exchange.

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Select indicators

then type KDJ in the search box

Add the first one selected from "ll21LAMBOS21".

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Once the indicator is ready, I can point out each one of the lines so that you have a precise way to identify each one of them.

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Overbought parameter:

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A = We can observe that at point "A" we see that the J Line is above 80 which indicates a clear overbuy.

Oversold parameter:

B= At the next point we see that the J line is below even the 0 point which indicates a brutal oversold. but already below 20 is already to alert us that there is an oversold at the moment.

after these movements both above the 80 we see a correction to the zone 7 and 17 to have the fall to -0 after this we see another correction in the oversold exceeding again and getting to overpass the 80 and staying in that range at the moment.

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Dead Pitchfork parameter:

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This parameter indicates a sell signal just when the K line crosses below the D line and this signal must be given when we are above 80 for the Dead Fork position to be fulfilled.

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Golden Pitchfork parameter:

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When we look at the golden pitchfork we can see that the D line crosses above the D line and below the J line This is called Dead Fork and is giving a buy signal because it means that the trend is bullish.

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Differences between KDJ, ADX and ATR

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KDJ indicator : It tells us overbought when the K line is above 80 and oversold when the K line is below the 20 point, it also tells us when there is a potential downtrend when the lines and uptrend.

ADX indicator

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The ADX indicates the strength that brings us a trend of any digital asset, ie in a price range the ADX ranges between 0-100 to better understand what I mean I will show you some parameters to have a better idea .

To have a better understanding of the subject I will show this graph below.

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ATR indicator

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It shows us the volatility of a digital market. It is a certain parameter of time through the gaps that are formed between price movements and is identified with a single line.

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The differences are:

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KDJ It indicates us the bullish or bearish trends with the mode of 3 KDJ lines that interact in a range of 0 -80 and by marked number and the crossing of the K and D line at certain point already stipulated we can identify the trends and draw our own decisions. of the market.

ADX It indicates the strength that brings us a trend and has several factors that influence as shown above in the comparative table. This is valued in a range of 0-100 that depending on this we will make important decisions in the analysis.

ATR It indicates the average volatility of a market in a certain period of time and is calculated as I said before between gaps and price movements and is represented by a single line like the ADX.

With this set of indicators we have a very strong tool to analyze any digital asset and thanks to these we will have a very good opportunity to increase the chances of generating more profits or increase the % of success in our speculations in the future.

Use random index signals to buy and sell two cryptocurrencies. (Screenshot required)

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Buy Order TRX/USDT BINANCE

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Sell order TRX /USDT BINANCE
the buy was for 130.6TRX = 0.08958 =11.69
sell was for 130.5TRX= 0.08990 =11.73
TOTAL PROFIT = 0.04$ in 5min time frame more or less taking into account the example and the changes.

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Minutes after the demonstration the chart continues to trend down as I showed you in the last question. it is currently oversold as it is below the 20 point.

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Buy BAKE/USDT

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The buy was for 11.449 USDT I got 4.48 bake. in an oversold as the K line is below the 20 point.
even getting to touch the 0 point expecting the line in 5min periods let's wait for that point to move a bit near 80 to sell.

We sold at almost the 80 line at 2.57.

With this strategy we can see that it really works and it is very productive.

in total were

Buy:11.449$/ 2.55$ (bake)=4.48bake
sell 4.48* 2.5806= 11.5610USDT

Total profit per trade =0.12USDT

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Conclusion:

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In my homework assignment I have seen that the KDJ indicator is very good indicator especially if we combine it with the ADX indicator and the ATR indicator is an indicator bomb in just a few minutes and with little capital I got good profits just following the rules of each of the indicators. I could see how the parameters asilaban giving us buy and sell signals in addition to the advantage we had the ADX could see the strength of the trend and taking advantage of there drove our expectations to an incredible analysis. I learned too much and I thank you for teaching the teacher @asaj thank you very much and all the academy that gives us the opportunity to learn more every day. greetings to all.

THANK YOU

Cc: @asaj