GlossaryBull Market Support Band
Bull Market Support Band
The Bull Market Support Band consists of the 20-week SMA and the 21-week EMA, with the area between them shaded. In crypto bull markets it is seen as the zone where pullbacks are often caught.
How to read it
- In a bull market, the price usually runs above the band. In past Bitcoin cycles, pullbacks into the band were often bought.
- A weekly close clearly below the band is seen as a warning sign that the uptrend is weakening.
- In a bear market, the band often acts as resistance from below. A weekly close back above the band is read as an early sign of recovery.
Good to know
- There are no settings. The lengths of 20 and 21 weeks are fixed. You can build other combinations with SMA and EMA and their Timeframe setting at 1W.
- The band needs at least 21 weeks of price history.
- The band comes from crypto trading and owes its reputation to Bitcoin's cycles. It calculates the same way on other assets; whether it holds up as well there is an open question.