什么是 Pi Cycle Indicator

The Pi Cycle Indicator is divided into two types: Pi Cycle Top and Pi Cycle Bottom. They are commonly used to identify market tops/bottoms and determine market cycles. The Pi Cycle Indicator identifies Bitcoin market tops/bottoms by observing the moving averages of Bitcoin over different time periods.

Simple Moving Average (SMA), also known as “arithmetic moving average,” is a line connecting the average values calculated over a specific period of time. It is one of the fundamental indicators for observing price fluctuations. For example, the Bitcoin 111 SMA is a line generated by simply averaging Bitcoin prices over 111 days.

Pi Cycle Top uses the 111 SMA and 350 SMA to observe Bitcoin’s historical price fluctuations and identify market tops. The ratio of these two moving averages is 350 / 111 = 3.153, which is close to the value of Pi (Pi ≈ 3.142). In simple terms, the principle of Pi Cycle Top is to compare the Bitcoin 111 SMA with 2*350 SMA and look for their crossover points to determine the market top.

Pi Cycle Bottom uses the 471 SMA and 150 SMA to identify market bottoms. Their ratio is 471 / 150 = 3.14. The principle of Pi Cycle Bottom is to compare the Bitcoin 150 SMA with 0.745*471 SMA and find their crossover points to determine the market bottom.

The factors 2* and 0.745* used in these two indicators were derived from previous experiments (which can be understood as reverse-engineering to find patterns). Historically, the crossover points of these SMA multiples most accurately reflect Bitcoin’s lowest and highest prices. Therefore, they have been consistently applied in the Pi Cycle Indicator.

Specific analytical uses

When analyzing with the Pi Cycle Top Indicator, the crossover point between the Bitcoin 111 SMA and 2*350 SMA is considered a potential market top, indicating that Bitcoin price is approaching a temporary or long-term peak; conversely, the crossover of 471 SMA and 150 SMA suggests a potential market bottom, indicating that Bitcoin price is approaching the cycle’s lowest point.

When the 111 SMA moves upward and crosses the 2*350 SMA, it signifies that the market is nearing the top. Bitcoin price is about to reach its peak and start declining. This is a sell signal.

When the 150 EMA moves downward and falls below 0.745*471 SMA, it indicates that the market is nearing the bottom. Bitcoin price is about to reach its lowest point and start rising. This is a buy signal.

For example, from the past four market cycles, it is clear that when the 111 SMA moves upward and crosses above the 2*350 SMA, Bitcoin reaches its peak, and the market enters the top phase, followed by a gradual decline in price. **$PIXEL **$PIPE **$API3 **