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STATUS 4H UGLY DOUBLE BOTTOM LONG TRADE Step #1: Identify two bottoms where the second bottom is at least 5% higher than the first bottom The first step is to identify the correct price structure of the ugly double bottom pattern. Basically, we need two bottoms where the second bottom is higher than the first one. In other words, the price needs to make a higher low. The second bottom also needs to be between 5% and 20% higher than the first bottom. This trading rule will ensure we’re not developing a double bottom pattern. Secondly, it will ensure the downswing leg before forming the second bottom has a proper length. There is one more critical element that needs to be satisfied. This brings us to the second step of our day trading cryptocurrency strategy. Step #2: Bottom 1 needs to develop a “V” shape type bottom The key to this reversal setup is the shape of the first bottom. The bottom 1 price structure needs to be a “V” shaped bottom. The identification guidelines of the V-shaped bottom are quite easy. The price needs to drop in a straight line, and then it reverses and moves up at a slightly steeper slope or at least at the same speed as it fell. The good thing is that we don’t need to spot this reversal pattern on a real live feed as they happen, we can look in hindsight and have the time to validate them. Next, we’re going to outline what key condition needs to be satisfied with our entry strategy and how to buy Status SNT. Step #3: How to buy Status SNT: Buy after we break above the highest point between the two bottoms. The ugly double bottom pattern is confirmed once we break above the highest point between the two bottoms. That’s also the moment when you would want to buy Status SNT. A break above the highest high between the two bottoms will also mark a break in the price structure. Once we break above point B, the price is making a higher high. This, paired with the previous higher low means we can safely assume the market is in the process of establishing a new bullish trend. This reversal setup indicates that catching a falling knife can work, but you need to be patient until all requirements fall into place and only then pull the trigger. This brings us to the next important step we need to establish for our day trading cryptocurrency strategy, which is where to place your protective stop loss. Step #4: Place your protective Stop Loss below the second bottom As we’ve suggested earlier, you can adopt different strategies to manage your risk, but for the purpose of this example, we’re going to highlight one effective way to hide your stop loss. Here is another strategy on how to apply technical analysis step by step. Place your stop loss below the second bottom! Alternatively, you can place your stop loss below the bottom 1, but this requires using a wider SL. Step #5: Take profit at the 1.272 Fibonacci extension level For our exit strategy, we’re going to use the Fibonacci extension toll. You can establish accurate profit targets with the help of the Fibonacci extension tool. We’re going to use the two bottoms and the highest high between the two bottoms as reference points to draw the Fibonacci extension lines. As a day trader, you only need one good trade to succeed in this business. Just imagine how much you can accomplish with one good trade per day. **Note: The above was an example of a BUY trade using the best Status SNT cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse
BINANCE:SNTUSDEducation
by Tradingstrategyguides
BTCUSD 4H KELTNER CHANNEL RANGE TRADING STRATEGYTrading Ranging Markets with Keltner Channel It is said that the number one account killer in the market is a ranging market. Consolidations are very difficult to trade. However, you can take advantage of the difference in the way the Keltner channel system can be used in combination with other technical indicators. The price won’t really touch the bands when it bounces between the upper and lower envelopes. When we’re in a ranging market, you’ll often see that the price will fail to touch the bands. The majority of the time the price will hug the middle band. This anomaly in price behavior requires us to use a secondary technical indicator to find profitable trades. Since the Forex market spends most of its time in consolidation (around 70% of the time), it’s mandatory to have a range trading strategy to survive in this market. For range trading, we like to use Keltner Channel bands in combination with a 2-period RSI indicator. We tweaked the RSI settings so we can better identify tops and bottoms within a trading range. *Note #3: For this Keltner trading strategy we use the 90-10 levels of overbought and oversold readings. Here are some rules that can guide you to make the best trading decisions: Keltner envelopes need to turn flat, to signal a consolidation. The price needs to break below the middle band. A buy order is triggered once the 2-period RSI goes below 10 indicating oversold conditions. The protective stop loss can be hidden on the other side of the Keltner band. For the long side take profit when the RSI reaches the 90 levels.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
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