Crypto Trading

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IMPORTANCE OF TRADING STYLE

Thank You for buying this fantastic educational stuff! I have had many
requests for the best Crypto trading strategies for quite a while ago. So
I decided to get on board and give you easy trading techniques
(eBook) that I think is one of the best trading strategies eBook you can
find.

In following pages, I will try to share at least 3 successful market-


tested trading strategies suitable for each type of trader.

Before picking or choosing a specific trading strategy, you need to


understand what trading style do you follow?
Some popular trading styles are as follow:
Scalping. These are very short-lived trades, possibly held for just a
few minutes. A scalper seeks to quickly beat the bid/offer spread and
skim just a few points/pips/satoshi of profit before closing. Typically
uses shorter time frame charts.
Day trading. These are trades that are exited before the end of the day,
as the name suggests. This removes the chance of being adversely
affected by large moves overnight. Trades may last only a few hours
and price candles on charts might typically be set to sixty minutes.
Swing trading. Positions held for several days, looking to profit from
short-term price patterns. A swing trader might typically look at with
price candles showing every 4 hour to one day.
Positional trading. Long-term trend following, seeking to maximize
profit from major shifts in prices. A long-term trader would typically
look at the end of day or weekly charts.
SCALPERS/DAY TRADERS
STRATEGY 1
The HIGH5 Strategy:

The HIGH5 strategy suggests every 100 % move on either side of


coin/asset follows minimum 5-10 % dip that can be used by scalpers
and day traders to take chance, provided that the 100% move must be
held within a single candle.
Let’s check, how this works actually.

In the ADX/BTC chart, you can see a single bullish candle of 100%
follows the dip, can be used in scalping and day trading to earn 5 %
easily. Although the dip in this specific case is much deep, but a
scalper and day trader can enter short at 100% level with target 5 % on
downside as exit level.
Let’s confirm this pattern in another chart,
Did you see?
It did happen again in the same pair. The higher move follows the dip
at least 5%.
This scalping strategy is not specific to short selling but can also be
used in LONG or Buying trade. Let see how; SPR/BTC:

Wow!
It works in buying case the same way it did work in short selling.
I hope you have quite beautiful understanding of this concept now.
What scalping is, who is its beneficiary and how it can be used
efficiently & effectively in crypto trading.
This HIGH5 is my own strategy and it is specially designed for crypto
scalpers and day traders. You won’t be able to apply this in other
financial markets i.e. Stock, Bonds, Forex and commodity markets.
STRATEGY 2
The BREAKOUT strategy:

I’m a huge advocate and fan of trading with momentum and the path
of least resistance. I try to get on board an existing trend, wait for price
to break the resistance and enter for scalping on breakouts.
The scalping on breakouts can easily reward us 5-10 %. Let me show
you this with following example; OK/BTC

Can you see the chart above?


It is crystal clear in this 60 minutes candle chart that when price breaks
the resistance it moves so fast in that direction, 5 – 10 % at least.

Let’s take another example for better understanding of this concept;


OMG/BTC
Look at this OMG/BTC chart, when price breaks the horizontal
resistance line a scalper and day trader can easily earn 5 % profit from
the breakout.
Trading breakouts can be very dangerous if you are not scalping/day
trading and using breakouts for long term gains. Because, sometime
breakouts lead to sharp reversals and pair comes back in its previous
range like you can see in above OMG/BTC chart. In that case, a trader
may be trapped.
Trading on the break-down to new lows or on the break-up to new
recent highs is often a major trap, especially for novice traders.
So, try not to be greedy.
Always take your profit and run from the market if you are truly A
SCALPER or DAY TRADER.
STRATEGY 3
The INTERSECTION strategy:

The basic idea behind scalping and day trading is opening a large
number of trades that usually last 60 minutes to 90 minutes.

However, some scalping and day trading strategies developed by


professional traders have grown in popularity. For example, Paul
Rotter placed buy and sell orders simultaneously and then used
specific events in the order book to make short-term trading
decisions.

Rotter traded up to one million contracts a day and was able to develop
a legendary reputation in certain circles. Amid this success, his
techniques have inspired many others. While studying well-known
strategies can be helpful, they should form the building blocks of your
own unique setup.

Similarly, I have established my third strategy which is highly helpful


for scalpers and day traders. The INTERSECTION strategy is a
simple strategy for beginners especially.

Let me show you how it works;

MTL/BTC
For starters, set your chart time frame to 60 minutes. Now make sure
these two indicators are applied to your chart:
1- Exponential Moving Average (EMA) with the periods of 50
(green) 2- Exponential Moving Average (EMA) with the periods
of 100 (red)

LONG TRADE: If EMA with 50 periods intersects the EMA with


100 periods from downside, it is bullish sign for scalpers and day
traders. Scalpers and day traders can enter into the trade immediately
after intersection for 5 – 10 % quick profit.
You can see the chart above, EMA 50 periods intersected EMA 100
periods from downside and took the pair high in due course.

SHORT TRADE: To determine when to make a short order, use the


same strategy indicators in reverse.

1- Exponential Moving Average (EMA) with the periods of 50


(green)
2- Exponential Moving Average (EMA) with the periods of 100
(red)
If EMA with 50 periods intersects the EMA with 100 periods from
upper side or above, it is bearish sign for scalpers and day traders.
Scalpers and day traders can enter into the short trade immediately
after intersection for 5 – 10 % quick profit.

Let me show you another example;


QTUM/BTC

Did you see?


This is QTUM/BTC chart, and the pair follows the same pattern that
the previous pair. The INTERSECTION strategy can also be used by
swing traders in larger time frames.
SWING TRADERS
STRATEGY 1
The PINBAR Strategy:

As I consider myself a swing trader, this strategy is one of my favorite


i.e. THE PINBAR. Candles are basically show the price action or
price movement of coin/asset. When candle makes a pin bar, it shows
that a massive crowd of buyer or seller is there to jump in the trade
which makes the candle close with rejected pin bar.
Are you thinking about pin bar? What is that?
Okay, don’t worry! Let me show you.

CLAM/BTC

Did you see? Yes, this is a Pin bar.


In CLAM/BTC chart the rejected pin bar shows that the massive
crowd of bear/seller is there on high level which pushed the price
down and made rejected pin bar.
The PINBAR strategy suggests that if candle makes a pin bar on its
swing at support level (which me be trend line or moving average
support), indicates the price of pair/coin/asset is going to continue its
trend.
Let me show you how it works in Long/buying as well as in
short/selling trade;

LONG TRADE: If you want to enter in LONG trade or you want to


BUY the pair/coin/asset using The PINBAR strategy, make sure the
following conditions have met.

• Candle must close with pin bar.


• Pin bar must be made on support level.
Let me show you with example;
BTC/USD

Did you see in the chart that?


BTC/USD fulfilled the requirement to go LONG i.e. Candle closed
with pin bar and candle makes the pin bar on median line of pitchfork
support.
Once the condition fulfills, pair/coin/asset continued its trend and went
high.
Short Trade: Similarly, the strategy works for bears or sellers. To go
short in the trade, use the same strategy in reverse i.e.
• Candle must be closed with pin bar.
• Pin bar must be at strong resistance level.
STRATEGY 2
The TREND FOLLOWING Strategy:

Have you ever heard that “TREND IS YOUR FRIEND”?


Yes, this is absolutely right especially when it comes to trading crypto
or any other financial market.
Price action traders can’t do without their trend lines. Trend lines are
practical tools for tracking and trading trends. It makes sense to form
trading strategies with this simple but useful tool.

Many traders who seem to trade with a blank chart have in fact
internalized the art of trend line drawing. They can visualize the trend
lines without actually drawing them.

Trend lines track trends. And when it comes to trading trends, you can
go for retracements or reversals. You can work on the premise that the
trend will continue or reverse.
There are two main type of trading strategies can be build up with
trend lines;
1. Trend Line Bounce – Aggressive Retracement
2. Minor Trend Line Break – Conservative Retracement

2.1. TREND LINE BOUNCE (AGGRESSIVE RETRACEMENT)


A trend line bounce is a classic pullback trade. The price action
premise here is that the trend (as highlighted by the trend line) will
resume. A bull market will bounce up from a trend line. Likewise, a
bear market will find resistance and bounce down from a bearish trend
line.
There are two approaches for this trading strategy.
The more conservative method is to wait for a confirming price pattern
to form. An example is shown below.

The more aggressive method is to enter with a limit order once price
hits the trend line. It allows you to enter at a better price if the trend
does resume.
However, as it lacks confirmation, its probability of success is
generally lower.
If you use a limit order to enter, consider using a volatility stop-loss.

2.2. MINOR TREND LINE BREAK (CONSERVATIVE


RETRACEMENT)
In this context, you are looking for a minor trend line that goes against
the trend.
The beauty of this trading strategy is that it uses a single trend line for
two purposes. The same trend line defines the retracement and triggers
the trade.
As shown in the example above, this trading strategy leads us into the
market on the side of the major trend. The trigger is the break of the
minor trend line.
Let’s drill into the specifics of the trigger. There are several definitions
of a trend line break. To use it as an effective trigger, you must know
which one you want to use.
You can consider a trend line broken when:

• The market trades through it.


• The market trades through it by a certain price threshold.
• A price bar closes beyond it.

REASONS WHY I AM SWING TRADER AND


YOU SHOULD BECOME SWING TRADER
TOO:
Let’s discuss some benefits of it.
When you trade the daily chart time frame as a swing trader does, you
are reaping many benefits compared to those poor souls who still
believe scalping a 60minute chart is the key to success.
One of the reasons why swing trading is such a huge advantage to the
retail trader is that it allows you to skip all the market ‘noise’ of short
time frames, like those under the 1-hour chart. Brokers and the big
institutional traders WANT smaller retail traders to trade short time
frames and day-trade / scalp, because they know they will get your
money easily if you do.
Swing trading on higher time frames like the 4 hour and daily allows
you to piggy back off the big moves created by the bigger players in
the market, and it also allows you to place your stop loss outside of
their reach, thus giving you greater ‘staying power’ so that you can
stay in the market longer and increase your chances of getting aboard
a big, profitable move.
Swing trading allows you to fit trading in around whatever busy
schedule you may have, or if you don’t have a busy schedule it will
allow you to make money trading and still enjoy your free time. There’s
nothing more boring than having to sit in front of the charts all day, not
to mention that it’s bad for your trading and your health.
Swing trading allows you to analyze the markets on your schedule, for
short periods of time, because you are focusing on higher time frames
as mentioned above. Also, because you are holding your trades for a
day or more in most cases, you can enter a trade on a Tuesday let’s
say, then go to sleep and wake up a day later and check on your trade.
You do not need to sit there all night worrying about your trades, nor
should you. An almost ‘magical’ thing happens when you stop paying
so much attention to your trades; you start to see better trading results.
People over-complicate their trading by simply being too involved.
Swing trading is the best method because it’s complementary to how
you should behave in the market because it rewards you for being less
involved and taking less trades over time, which is exactly what you
need to do if you want to have any chance at success. The take home
message here is, swing trading will help you avoid overtrading, and
over-trading is the biggest reason why people lose their money
trading.
POSITION TRADER
STRATGEY
What is Positional Trading and how to do it?

A position trader is a type of stock/forex/commodity or crypto trader


who holds a position for the long term (from months to years). Long-
term traders are not concerned with short-term fluctuations because
they believe that their long-term investment horizons will smooth
these out.

Many position traders take a look at weekly or monthly charts to get a


sense of where the asset is in a given trend.
Position trading is the polar opposite of day trading because the goal is
to profit from the move in the primary trend rather than the short-term
fluctuations that occur day to day.
The Position trader uses the combination of all technical, fundamental
and sentimental analysis.
If you want to be position trader or you want to invest in any coin for
long term, use the blend of all type of analysis.
TECHNICAL: In technical analysis, use weekly or monthly chart to
know the trend of coin. Apply all other technical tools in the chart that
we have already discussed in scalping/day trading strategies. If all the
technical analysis predicts the upward movement, mark it and move to
fundamental analysis.
Fundamental: In fundamental analysis, first of all check the total
supply of coin. It will help you in calculation of ROI. Once you are
satisfied with the supply move to the project and check its worth and
long term usability. Then search about the team (dev), if you find the
team is credible and promising, mark it and move to sentimental
analysis.
Sentimental: This is the last confirmation you would need to enter in
long term investment. Check Social media and also the electronic
media to know the sentiment of investors/traders toward a specific
coin/asset.
If all above mentioned analysis satisfies you, JUST GO FOR SHOT..!

FOR MORE QUESTIONS PLEASE CONTACT : +212601639964 «


whatsapp » darhi.med1993 @gmail.com

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