What is Hash ribbons?

The Hash Ribbons indicator analyzes the behavior of the Bitcoin hashrate. Hash Ribbons in real-time tries to identify the moments when miners are especially weak and close to capitulation. This time can be a great moment to invest in bitcoin because historically almost all such moments were on the lows of the market.Now let’s explain in detail:Miners work as long as the owners of mining farms do not consider mining inappropriate. There are moments when the equipment is turned off, and the hash rate drops. Such moments occur during large drawdowns of the bitcoin price when it seems that the price will be even lower.As the author of the indicator, Charles Edwards, says, “When miners give up, this is probably the strongest signal to buy Bitcoin.”Hash Ribbons doesn’t try to find the bottom perfectly. This is the task of the trader. The indicator rather allows you to see the global direction of the upcoming movement (or try to do it).Many traders claim that this is the best indicator for the crypto because it doesn’t have a single error. Let’s check if this is the case

Working off

After checking the whole history, I can say that the indicator was not wrong. Is this because it gives signals only in one direction, while bitcoin is growing globally? Perhaps, in part, but the entry points also turn out to be quite good.In 2015, after the “Buy” point, the price of bitcoin sank by 42%, but in the end, you all know where it is now.

How is Hash Ribbons calculated

This indicator is based on the hashrate. It is displayed by two moving averages with different lengths. SMA with periods 30 and 60 to be exact. The creator of the indicator recommends using Hash Ribbons in conjunction with a golden cross to minimize risks.But the connection of this indicator with other trading strategies depends only on you, perhaps the key to success is stored here.

Conclusion

Hash Ribbons is one of the best indicators. But don’t rely entirely on any strategy that doesn’t involve your brain. This indicator can be easily algorithmized, making it a simple source of income for everyone.