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Momentum, Volatility and the Moon Overlay: RSI, MACD, Bollinger, Volume

Part 4 ยท Oct 20, 2026

Moving averages tell you direction. This lesson adds the gauges that tell you how hard price is pushing and how far it has stretched.

RSI and MACD, the two panes

RSI (Relative Strength Index) is a 0 to 100 gauge of recent momentum. Above 70 is stretched to the upside, below 30 stretched to the downside, and 50 is the line between bullish and bearish energy. MACD (Moving Average Convergence Divergence) is two averages chasing each other, drawn as a line, a signal line and a histogram that flips green and red.

Both open under the price on the lesson chart with the standard settings (RSI 14; MACD 12, 26, 9). Keep them standard. The course changes nothing here except the line thickness, which is a matter of eyesight, not analysis. You can also tune both in the Indicators panel if a later lesson asks you to.

Bollinger Bands

A 20-bar average with a band two standard deviations above and below it. The bands squeeze when the market is quiet and widen when it is moving. On the lesson chart:

The middle line is a 20 SMA; the outer bands are what the course watches. A dedicated lesson later in this module reads them on the weekly.

Volume

Volume is context. A move on heavy volume had a crowd behind it; the same move on thin volume did not. Colour and transparency are cosmetic.

Volume profile: what the platform offers instead

The course author also uses a volume-profile study (VPVR) to see the prices where most volume traded. The TradingView chart on this platform does not include that study, and there is no honest substitute that counts volume by price. The nearest thing is the lesson chart's auto support and resistance zones, which cluster the prices the market keeps returning to and rank them by touches. Different maths, similar question: "where has the market agreed on price before?"

The moon overlay, with the platform's own caveat

The course keeps a lunar calendar on the chart: new moons and full moons marked as dates. On WenMoonLambo the Astrology page has the full lunar calendar with the retro overlay chart marking every new and full moon on price, and the TradingView chart on the Technical Analysis page has a built-in Moon Phases study you can add from its Indicators menu.

What the overlay is: a calendar. What it is not: a signal. The course author treats the stretch into a new moon as a bullish window and the stretch into a full moon as a corrective one. That is the author's framework. WenMoonLambo checked every lunar cycle since 2017 against Bitcoin's daily closes and found no established link once Bitcoin's normal upward drift is accounted for, and the platform presents lunar data as an entertainment layer. Use the dates as a reminder to re-check your levels, never as a reason on their own.

Measuring a move

On the Technical Analysis chart the Measure tool in the drawing toolbar reports the percentage from one point to another. On the lesson chart, draw a horizontal line at each end and read the two prices.

In the lab

Switch all four on, then switch the lesson chart between 1D and 1W and watch how the panes change shape while price does not. Save this as a preset named momentum layer.

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