When Taihuttu began day trading tokens, he initially turned to traditional predictive metrics like the stock-to-flow model and the Mayer Multiple — a measure calculated by dividing the current price of bitcoin by the 200-day moving average in order to help identify frothy moments in the market when an asset’s value eclipses its intrinsic value.

But spending the time reading the tea leaves of all these somewhat related measures didn’t seem like a particularly productive use of his time, so Taihuttu decided to create his own proprietary blend of the best indicators on the market.

“It’s not just enough to know which indicators go into a formula,” explained Taihuttu. “What you can’t see is the calculus and the code that implements over the stock conditions. Those calculations display in charts.”

So beginning in 2019, Taihuttu started to incubate and perfect a custom-built predictive trading tool that would weigh multiple technical indicators — plus a bit of astrology — and then spit out real-time insights into potential price swings.

“It’s a combination of Bollinger Bands, Lower and Upper Bands, NMA, Red/Green Ribbon, NormStoch, RSI, Price Oscillator, Plot, MACD, Cross, Chande Momentum Oscillator, RSI-EMA, Full Moon, and New Moon,” explained Taihuttu, naming a dozen of the most popular market signals that crypto traders watch when they make investment decisions.

“Short and long signals and confirmation signals are shown on the charts when it could be a great moment to buy or sell,” continued Taihuttu.

Here is a quick breakdown of the technicals that underly the model:

• Bollinger Bands focus on price volatility over time. The model consists of a simple moving average line with two standard deviation lines known as the Upper and Lower Bands. Price moves outside those outer bands can indicate whether an asset is oversold — or vice versa.
• N-day Moving Average (NMA) is a type of moving average that takes the mean of the closing price of an asset over a variable period of time, or “N” days.
• Red/Green Ribbon indicators depict bullish, or green, and bearish, or red, market conditions.
• The Normalized Stochastic (NormStoch) looks at price momentum. It is a variation of the Stochastic Oscillator — an indicator which compares the closing price of an asset to its price variation over a designated period of time.
• Similar to the Bollinger Bands, the Relative Strength Index (RSI) assesses whether an asset is oversold or overbought. The index, which ranges from 0 to 100, measures the speed and the scale of an asset’s recent price swings.
• Moving Average Convergence Divergence (MACD) compares two moving averages of a cryptocurrency’s price by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
• The Percentage Price Oscillator (PPO) takes the MACD reading and divides it by the 26-period EMA. It is possible to compare the PPO measures of different assets with larger price discrepancies, because it is expressed as a percentage.
• With bitcoin, when the line charting the 50-day moving average crosses above a rising 200-day moving average, it is read as a bullish indicator known as a Golden Cross. When the 50-day moving average crosses below a falling 200-day moving average, it is known as the Death Cross, signaling a bear market may be imminent.
• Chande Momentum Oscillator is a technical momentum indicator similar to the Relative Strength Index and the Stochastic Oscillator, except that it reacts faster to price changes.
• As the name implies, the Relative Strength Index-Exponential Moving Average (RSI-EMA) combines both measures into a single indicator.

And then there are the intangible price influencers — like moon phases.

“I’m not saying it always affects the price of bitcoin, but the moon influences a lot,” said Taihuttu.

Taihuttu has found that when there is a full moon or a half moon, people tend to trade more.

“They tend to buy more, they tend to sell more,” he said. “Maybe it’s a coincidence, but if you look at the chart, you can see that mostly at the full moon, depending on where we are in the cycle, there’s a dump or a pump.”

Taihuttu added that the lunar phases also typically sync with the opening and closing of bitcoin’s monthly puts and options.

“So if we are in the top of the Bollinger Band in combination with a full moon, then you know that we are going to run,” continued Taihuttu, suggesting a market sell-off is imminent.

Taihuttu used to sell the Didi Bam Bam indicator to traders, but he says he will soon make give the trading tool away to selected bitcoin evangelists in order to help spur adoption.

But he also admits that his business model is disappearing.

“Anyone in the world can now go into ChatGPT and tell them, ‘Write me an indicator based on the moving averages and this cycle or that cycle. And write me a script that I can implement into TradingView and then they can make their own indicators,'” explained Taihuttu.

“I’m losing business there.”