Following a recent disclosure of his methodology for identifying trends, renowned financial market trader Peter Brandt aroused traders' curiosity. Brandt, who is well known for his uncomplicated and methodical approach to trading, disclosed that he determines the trends' direction using a basic 8/18 bar moving average (MA).

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Brandt uses a more intuitive approach, utilizing these MAs as a proxy for trends to determine the path of least resistance in any market, in contrast to many others, who rely on intricate indicators or methodical techniques. In order to demonstrate how he uses this method, Brandt included a chart of Bitcoin paired with USDT in his most recent analysis.

A favorite saying of the old-timers at the CBOT was "trade with the trend." But what in the world does that even mean? I do not have THE answer. I do not have YOUR answer. I only have MY answer to this question.I use a simple 8/18 bar MA as proxy for trend. I do not use this in… pic.twitter.com/m4y73rstvH— Peter Brandt (@PeterLBrandt) August 11, 2024 The 8-bar and 18-bar moving averages on the chart gave investors a clear visual indication of the market's current direction, as it was trading within a descending channel. Bitcoin's price is currently below both moving averages, indicating that the market is still bearish.

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This suggests that the cryptocurrency is still trending lower. Instead of employing a robotic or unduly strict approach, Brandt uses the 8/18 bar MA. He suggests that consistency and familiarity with the tool are more important than continuously seeking optimization or switching indicators, and he instead emphasizes learning the personality of these moving averages. This way of thinking is consistent with his larger view that success comes from learning the tools you choose to use, not from any one technical indicator that is flawless or inherently better. In the short term, $58,000 and $52,000 are the key levels for Bitcoin to keep an eye on. Failure to hold above these levels could result in additional declines inside the descending channel, but a break above the 8-bar MA could indicate a possible trend reversal.