Why Trade Bitcoin?.
The trading bitcoin for profit is actually a universal cryptocurrency trading strategy that can be used to trade any of the plus cryptocurrencies available to trade as of today. If youre not already familiar with cryptocurrencies its best to first start with a brief introduction. Whether you were day trading bitcoin in , or day trading it now in , consider using the on balance volume (OBV) indicator. It utilises an intelligent combination of price and volume activity to tell you what is the total money flowing in and out of the market currently.
You'll need this for the best Bitcoin trading strategy and how to use it: This is one of the best indicators for day trading bitcoin. It is used to basically analyze the total money flow in an out of an instrument. The OVB uses a combination of volume and price activity. This tells you what the total amount of money going in and out of the market. How to read the information from the OBV indicator is quite simple. Here you can learn how to profit from trading.
The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up. What we really want to see is the OBV moving in the same direction as the Bitcoin price.
In this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and give some more confirmation of our trades. On this part comes the Ethereum trading strategy which will be used to identify Bitcoin trades. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy.
Your chart setup should basically have 3 windows. One for the Bitcoin chart and the second one for the Ethereum chart. Last but not least, make one window for the OVB indicator. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same like in the figure above. Simply put it, we are going to look after price divergence between Bitcoin price and Ethereum.
Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency. For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence. And Ethereum trading strategy as well. In the above figure, we can notice that Bitcoin price fails to break above resistance while Ethereum price broke above and made a new high which is the first sign that the best Bitcoin trading strategy is about to signal a trade.
The same principles have been true for all the other major asset classes for decades. Before buying, we need confirmation from the OBV indicator. This brings us to the next step of the best Bitcoin trading strategy. If Bitcoin is lagging behind Ethereum price it means that sooner or later the Bitcoin should follow Ethereum and break above resistance.
Simply, the OBV is a remarkable technical indicator. It can show us if the real money is really buying Bitcoin or quite the contrary they are selling. What we want to see when Bitcoin is failing to break above a resistance level or a swing high and the Ethereum already broke is for the OBV to not only increase in the direction of the trend but to also move beyond the level it was when Bitcoin was trading previously at this resistance level see figure below.
Here is how to identify the right swing to boost your profit. Now, all it remains for us to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy.
Once the OBV indicator gives us the green signal, all we have to do is to place a buy limit order. Place the order at the resistance level in anticipation of the possible breakout. Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy. Placing the stop loss below the breakout candle is a smart way to trade. When it comes to our take profit usually an OBV reading above , is an extreme reading that signals at least a pause in the trend which is why we want to take profits.
In the figure below, you can see an actual SELL trade example, using the best Bitcoin trading strategy. Maybe one day our fiat money system will go under and be completely replaced by cryptocurrencies.
However, as long as there are still profits to be made from Forex currency trading we encourage you to read our receipt for Forex trading success: We hope that The Best Bitcoin Trading Strategy — has shed some light on how you can use the same technical analysis tools that you use for trading the Forex currency market to now trade the cryptocurrencies.
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We are highly motivated to do this for you because we love helping people succeed who are serious about trading. If you want to get the most up-to-date info that we offer than most likely the best way to do that right now is to follow us on social media which are: Update your email preferences http: Unsubscribe from all future emails http: The crypto Market is the highest market now. You can be part of the people who are earning a living through trading cryptos.
With just half a bitcoin, you can make up to 3 bitcoins in a week. Contact me via kramerp04 gmail. If you want to buy more bitcoins up to 0. I have been scammed on bitcoins trading till I finally got referred to https: This guys are simply fast! Your email address will not be published.
Alexis Jk Dela Cruz on September 27, at 1: In what MT4 shall we use it, what broker? TradingGuides on September 27, at 3: Hi Friend,, We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best. OBV- 0 to , where do you take profit then, in a buy trade. But what do we do now?
Very simple, Keep moving forward. Needless to say, the next step is usually the bright red candle which sells through the whole order book. Manage risk wisely across your portfolio. For example, you should never invest more than small percentage of your portfolio in a non-liquid market very high risk. To those trades we will assign greater tolerance — the stop and target levels will be chosen far from the buying level.
Bitcoin is a volatile asset relative to FIAT and this fact should be taken into consideration, especially in the days when the Bitcoin value is moving sharply. Bitcoin and Altcoins have an inverse relationship in their value, i. When Bitcoin is volatile, our conditions for trading are kind of foggy. Take this into account when holding Alts for the medium and long term, and of course choose them carefully. What kind of Alts are recommended for the long term? Remember, this is only when there is a reason for making a trade.
Such periods are likely to be a consolidation period by the whales, and when the right time comes, accompanied by a good press release of the project, the pump will start and they will sell in profit. The motivation for the investors is that the token will be traded from day one on the exchanges and would yield a nice profit to the ICO participants. In recent years, there have been many successful ICOs, both the project itself and especially in measuring the yield for investors.
Coins doubled, or tripled, their value and much more in relation to their value on the crowd sale. Not all the projects benefit their investors. Many ICOs proved to be complete scams, not only were they not being traded at all but some projects disappeared with the money and we have not heard from them right up to this day.
So how do you know if you should invest in an ICO? Pay attention to the Bitcointalk thread does it exist at all? Is there a large community behind the project? Expect to see a Slack gathering its community.
Watch out the amount raised: And most importantly is risk management.
So if you want me to continue with this show some support with likes, sharing, comments so I keep going. I have been scammed on bitcoins trading till I finally got referred to https:
Why have we Remained here? They have no intrinsic value.