🔥 PMO Indicator Signaling New Bitcoin Bull Phase Has Started

Jan 4, 2023

First, a minor introduction to the PMO indicator: "Developed by Carl Swenlin, the DecisionPoint Price Momentum Oscillator (PMO) is an oscillator based on a Rate of Change (ROC) calculation that is smoothed twice with exponential moving averages that use a custom smoothing process. Because the PMO is normalized, it can also be used as a relative strength tool. Stocks can thus be ranked by their PMO value as an expression of relative strength." -- stockcharts.com

The PMO indicator is a relatively unknown indicator, but that doesn't mean it's useless. Typically, this indicator can be used do determine the start of long-term trends. For me personally, I find this indicator particularly useful to spot oversold/overbought reversals.

As seen on the chart, the PMO is currently well below the zero point, which indicates relative oversold levels A cross of the fast line above the slow line (green circles) has historically signaled the start of a new Bitcoin bull phase, and thus telling us that the bottom is in.

Whether this time is different remains to be seen. The macro environment is vastly different from previous bear-markets, so we can very well drop lower. On the other hand, the indicator has proven to be resilient in the past, so it's definitely a point for the bulls.