Simple and Profitable Cryptocurrency Trading Strategy
Updated
New Simple, easy and profitable Cryptocurrency trading strategy. The chart I've used to demonstrate is Ethereum but I use it across all of the major cryptocurrencies (BTC, XRP, BCH, DASH, etc). The chart shows daily timeframe but it is profitable on lower timeframes (I haven't used/tested below 4hr so try that yourself)
Indicator List
WWV_LB (5) = Weis Wave Volume by Lazybear with lookback setting of 5
Blue EMA = 8, close
Red EMA = 8, open
Coloured Boxes
Red = Profitable sell
Green = Profitable Buy
Yellow = Losing trade
Weis wave volume indicator is essentially showing when there is a turning point of control over the previous 5 timeperiod (here 5 days), from either bears to bulls or vice-versa. Meaning it is very good at showing the start and end of swings.
The EMAs are used to filter the weis wave volume indicator so that you dont enter on small pullbacks and it allows to visibly view the trend (pointing up/down) and when market is stagnent.
Rules
Buy
1. Look to buy when the weis wave volume indicator switches from red(bears in control) to green (bulls in control).
filter
2. EMA 8, close must be above ema 8, open with daylight between the indicators. Without daylight then for me it doesnt represent a strong move.
Sell
1. Look to sell when the weis wave volume indicator switches from Green to red.
filter
2. EMA 8, close must be below ema 8, open with daylight between the indicators.
Indicator List
WWV_LB (5) = Weis Wave Volume by Lazybear with lookback setting of 5
Blue EMA = 8, close
Red EMA = 8, open
Coloured Boxes
Red = Profitable sell
Green = Profitable Buy
Yellow = Losing trade
Weis wave volume indicator is essentially showing when there is a turning point of control over the previous 5 timeperiod (here 5 days), from either bears to bulls or vice-versa. Meaning it is very good at showing the start and end of swings.
The EMAs are used to filter the weis wave volume indicator so that you dont enter on small pullbacks and it allows to visibly view the trend (pointing up/down) and when market is stagnent.
Rules
Buy
1. Look to buy when the weis wave volume indicator switches from red(bears in control) to green (bulls in control).
filter
2. EMA 8, close must be above ema 8, open with daylight between the indicators. Without daylight then for me it doesnt represent a strong move.
Sell
1. Look to sell when the weis wave volume indicator switches from Green to red.
filter
2. EMA 8, close must be below ema 8, open with daylight between the indicators.
Note
Trade example below on ripple
Also worth mentioning as i forgot in original post. I exit the trade off the weis wave volume indicator switching to opposite direction. Doesnt matter if EMAs cross, if it still shows short/long then i'll keep trade open.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.