The AE - Combined RSI is a multi-timeframe RSI composite designed to detect critical accumulation zones in Bitcoin’s market cycles. Unlike traditional RSI, this indicator integrates multiple time horizons to provide a comprehensive momentum assessment, capturing divergence patterns that signal major market shifts.
Historically, when the Combined RSI reaches its oversold threshold while Bitcoin’s price structure remains intact, it has preceded significant expansion phases. This divergence—where price strength persists despite technical weakness—has appeared only a handful of times in Bitcoin’s history, each marking strong buying opportunities.
The Indicator provides a structured approach to identifying accumulation zones and potential trend shifts:
- Oversold Threshold (Green Zone): When the indicator drops below the green dotted line while price holds structure, it suggests an optimal accumulation zone.
- Rebound Signal: Historically, when the Combined RSI recovers from oversold conditions, Bitcoin has experienced substantial rallies.
- Divergence Analysis: Classic divergence patterns—where price remains strong but RSI weakens—often signal upcoming expansion phases.
By incorporating this indicator into market analysis, investors can gain a data-backed perspective on accumulation zones and potential trend continuations, even when Bitcoin is near all-time highs.