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BITCOIN GOLD HEIKIN ASHI STRATEGYOur trading community is composed of long-time crypto enthusiasts, and in today’s article, we want to bring to your attention the Bitcoin Gold trading strategy that uses the Heikin-Ashi technique to forecast the Bitcoin Gold price. The Heikin-Ashi technique is simply another form of looking at charts that traders can use to spot trading opportunities. This new revolutionary way to look at charts can be applied to any time frames. So, no matter of our trading style (daytrading, swing trading, trend following) you can implement this trading method into your trading cryptocurrency strategy. You can put to use the Heikin-Ashi charts to many markets even though they initially were designed for commodities and stock market price; it has the same kind of success on Forex currency pairs as well as on cryptocurrencies. Heikin – Ashi in Japanese means average bar and are a type of candlesticks different than the typical Japanese candlesticks that you encounter when learning how to trade. However, we’ve found that the Heikin – Ashi candlesticks are much more accurate in helping us determine Bitcoin Gold price movements. There are two primary trade signals that we can identify through the Heikin Ashi candlestick: Bullish candlesticks with no wicks or very small wicks indicate a strong uptrend and good buying Bitcoin Gold opportunities. Small candlestick characterized by a small body and big upper and lower wicks signal a potential reversal. Note* The same rule can be applied in reverse for Heikin Ashi bearish candlesticks. Step #1: Identify three consecutive bullish candles that have no lower wicks. After you switch to the Heikin Ashi candlestick chart on your trading platform, the first step is to identify three consecutive bullish candles. It’s mandatory that all the three Heikin Ashi candlesticks have NO lower wicks. Remember that bullish candlesticks with no wicks indicate a strong uptrend and further increase in Bitcoin Gold price. We also have to make sure that these three consecutive candlesticks are placed at the right location. Step #2: Before the three consecutive bullish candles we need to have no more than 5 consecutive bearish candles Location, location, location is the key word and a fundamental concept if you want to improve your trading instantly. So, prior to the three bullish candles spotted earlier, we need the location of this pattern to be located in such a way that behind it we can’t count more than five consecutive bearish candles. Identifying trends and opportunities to buy Bitcoin Gold are much easier now that we have a trade setup with a good location. Step #3: Buy at the market at the opening of the next 4th candle When to buy Bitcoin Gold is very easy to understand. To initiate a position, wait for the opening of the 4th candle after the three consecutive bullish candles. Preferably, after you spotted the three candle trade setup, you need to get ready to pull the trigger. Step #4: Place protective Stop Loss below the most recent swing low There is a very obvious predictability in our approach to the stop loss strategy. We hide our protective stop loss few pips below the most recent swing low. Alternatively, you can place your stop loss below the three candlestick pattern, but you risk to be taken out prematurely when we’re in a trading range. So, you need to adapt your stop loss strategy to the current market conditions. Step #5: Take Profit equals 2 x risk or 3 x risk Depending on how strong the Bitcoin Gold trend is, you want your take profit target to be two or three times more than your stop loss. This is a simple exit strategy that potentially can reward you with a positive risk to reward ratio. For take profits, you can also cash out at regular trading intervals partial profits. Note** the above was an example of a BUY trade using the Bitcoin Gold cryptocurrency trading strategy. Use the same rules for a SELL trade – but in reverse. PM me if you want to read the complete strategy
BLong
by Tradingstrategyguides
1
STEPPING STONE STOCHASTIC STRATEGYStep #1: Identify a strong trading market that has a clear bullish trend The first step is to identify a strong trading market that has a clear bullish trend. Our team at Trading Strategy Guides has discovered that you can benefit more by using the stochastic indicator to trade pullbacks rather than trying to pick a falling knife or to jump in front of a train. Consequently, you want to find a strong trading market' Step #2: The Stochastic indicator needs to develop a double bottom pattern. The second bottom has to be higher than the first bottom. It’s critical to make the difference between the double bottom price pattern and the fact that we’re looking at the stochastic indicator to develop a double bottom. The other condition is that we need the second stochastic swing low to be higher than the first bottom. Step #3: Both stochastic swing lows need to be in oversold territory below the 20 level A stochastic reading below the 20 level suggests that the market is oversold and there is a high chance of reversal. Many times a market can remain in oversold or overbought territory longer than you can remain solvent which is the reason why we have put in place the other trading rules so we can avoid this situation. Step #4: Look for divergence to develop between the stochastic indicator and the market price Before we go any further than this, we need to clarify one thing. The way people trade divergence is by using a variety of momentum based indicators and measure or compare when the momentum indicator and the price diverge. In other words, when the price makes a lower low but the momentum indicator fail to make a lower low and instead makes a higher low then we have a situation where we have divergence. So, what type of divergence we want to see? In plain English, we look for the price not to drop that much compared with the stochastic indicator. Notice how the stochastic indicator is falling very fast into oversold territory, but the EUR/USD exchange rate is dropping at a much slower pace. Note* the stronger the divergence between the stochastic indicator and the price the better the buy signal can be. Step #5: How to trade stair strategy: Buy after the second bottom develops a stochastic crossover The trigger for our entry is quite simple. Once the second bottom produces a stochastic crossover, we jump straight into the market and start buying so we won’t miss a great entry opportunity. In this scenario, our entry is as close as possible to the end point of the retracement. Step #6: Place the protective stop loss below the last swing low. Take Profit when the slow stochastic moving average enters in overbought territory above 80 levels. Place your protective stop loss 10 pips below the last swing low. We’re adding a buffer of 10 pips to protect ourselves in case of any false breakouts. Usually, our stop will be very close to our entry price which is the reason why this swing trading strategy is such a great entry technique to keep your losses small. You really can use any type of exit strategy as you wish Where to take profit is also quite intuitive using the stair step chart pattern. Once the stochastic slow moving averages enter overbought territory or when it touches the 80 level, we want to cash out. Alternatively, if you’re going to try to stay longer in the trend you can try our 10-day breakout strategy. Note** the above was an example of a BUY trade using the stepping stones strategy. Use the same rules for a SELL trade – but in reverse. PM me if you want to read the complete strategy.
BITFINEX:ETHUSDLong
by Tradingstrategyguides
BTCUSD 4H MACD TREND FOLLOWING STRATEGYStep #1: Wait for the MACD lines to develop a higher high followed by a lower high swing point. The first rule of thumb to recognize a swing high on the MACD indicator is to look at the price chart if the respective currency pair is doing a swing high the same as the MACD indicator does. A higher high is the highest swing price point on a chart and must be higher than all previous swing high points. While a lower high happens when the swing point is lower than the previous swing high point. Step #2: Connect the MACD line swing points that you have identified in Step #1 with a trendline At this point, we really ignored the histogram because much of the information contained by the histogram is already showing up by the moving averages. Look at the price action now and compare it to our MACD trendline we drew early. We can clearly notice that the MACD contains the price action much better and reflects the trend much clear. Step #3: Wait for the MACD line to break above the trendline. (Entry at the market price as soon as the MACD line breaks above) When the MACD line (the blue line) crosses the signal line (the orange line) it’s an early signal that a bullish trend might start. However, if trading would be that easy we would all be millionaires, right? And that’s the reason why our MACD Trend Following Strategy is so unique. We’re not only waiting for the MACD moving averages to cross over but we also have our other criteria for the price action to break aka the trend line we drew early. This is a clever way to filter out the false signals, but you have to be equipped with the right mindset and have patience until all the piece of the puzzle come together. If you were to trade just based on the MACD crossover over time you’ll lose money because that’s not a reliable strategy. But if you use the MACD indicator along with other criterias such what this strategy tells you to do, you will find great trade entries on a consistent basis. Step #4: Use Protective Stop Loss Order. (Place the SL below the most recent swing low) Now, that you already know how to enter a trade at this point you have to learn how to manage risk and where to place the SL. After all, a trader is basically a risk manager. You want to place your stop loss below the most recent low. A good entry price means a smaller stop loss and ultimately it means you’ll lose a lot less comparing it with the profit potential, so a positive risk to reward ratio. Step #5: Take Profit when the MACD crossover happens in the opposite direction of our entry Knowing when to take profit is as important as knowing when to enter a trade. However, we want to make sure we don’t use the same trading technique as for our entry order. When the MACD line (the blue line) crosses the signal line (the orange line) we want to close the position and take full profits. Before taking profits, it’s important to wait for the candle close – either the 4h or the daily candle – depending on the time frame you trade so you make sure the MACD crossover actually happens. Note** The above was an example of a buy trade using the MACD Trend Following Strategy. Use the exact same rules – but in reverse – for a sell trade.
BITFINEX:BTCUSDLong
by Tradingstrategyguides
3
ZCASH ZECBTC 1H DOUBLE PITCHFORK STRATEGYStep #1: Draw the double Pitchfork channel The first thing that we need to pay close attention is how we select our swing points. We only want to choose significant swings on the Zcash chart. Once you locate the four swings, merely use the Pitchfork indicator to draw the double Pitchfork channel. There is a simple reason why we use two Pitchfork channels. Our team at TSG has discovered that the Pitchfork indicator has limited power in forecasting future price movements. However, by using this simple trading trick to combine two Pitchfork indicators together, we eliminate a lot of the drawbacks that come with this unique technical indicator. Step #2: Wait for Zcash price break above the 1st Pitchfork channel At this stage, if the two pitchfork channels overlap don’t get confused about it. The 2nd pitchfork is darker color. Wait for the Zcash price to break above the 1st pitchfork channel. We want to see a big bold breakout candle that closes above the 1st Pitchfork channel. Step #3: The Zcash price needs to trade below the median line (2nd pitchfork channel) on a closing basis. The median line of the second pitchfork channel needs to hold the upside and provide us with strong resistance. As a general rule, as long as we trade NEAR the median line, we’re good to go even if for a brief period of time we still break above the resistance line. Most of the time, the Zcash price will gravitate towards the median line back and forth, so we need to take that into consideration if we want to trade cryptocurrency strategies successfully. Step #4: Buy at the market or stop order as soon as we break below the 2nd Pitchfork Channel bottom support line. How to buy/sell Zcash is simple. With our entry technique, we sell at the market or stop order when we break below the 2nd Pitchfork Channel bottom support line. The advantage of this cryptocurrency entry strategy is that we sell when the momentum is in our favor. Step #5: Place protective Stop Loss above the 2nd Pitchfork Channel median line One of the most important things in trading is risk management. So, don’t forget to place your protective stop loss in order to minimize the potential losses. After you sold Zcash ZEC, make sure you add your stop loss order above the 2nd Pitchfork channel median line. Step #6: Take Profit when we touch the median line of the 1st Pitchfork Channel or according to your trading plan Our take profit strategy for successful cryptocurrency trading is easy to implement. We don’t want to take premature profits, but we also don’t want to give back our hard earned profits either. In this regard, we take profits when Zcash price reaches again the median line of the 1st Pitchfork channel or according to your trading plan. Note** the above was an example of a SELL trade using the Zcash cryptocurrency trading strategy. Use the same rules for a BUY trade – but in reverse.
Short
by Tradingstrategyguides
1
USDCHF- Bullish Move UpOur RSI 80-20 Strategy triggered a trade. Below are the rules of the strategy: Step One: Find the currency pair that is showing a high the last 50 candlesticks . (OR low depending on the trade) Step Two: When we find 50 candle low, it needs to be coupled with RSI reading around 20 or lower. (If it’s a high it needs to be coupled with the RSI reading 80 or higher.) Step Three: Wait for a second price (low candle) to close after the first one that we already identified. Step Four: Wait for the price to head in the direction of the trade and wait for a candle to close above the first candle that you identified that was previous 50 candle low. Step Five: Place Stop Loss-This strategy follows a 1 risk to 3 reward ratio entry/exit points.
Long
by Tradingstrategyguides
1
USDCHF Trade Idea- Short Our strategy has three simple steps which are: Step 1- Apply Indicators to Chart: *20 Period SMA *40 Period SMA *80 Period SMA Step 2- Identify the Trend. Price Action needs to break Moving Averages Step 3- Wait for entire candle to close outside of Moving averages + Pull Back in Price Action + Continuation of Trend **Broke below the moving averages. **A full candle closed below the SMA lines This trade has followed the criteria thus far. let us know if you have any questions!
Short
by Tradingstrategyguides
Reversal AUDCHF UpdateAnother update on this trade idea. We are following these rules of this strategy: Step One : Find the currency pair that is showing a high the last 50 candlesticks . (OR low depending on the trade) Step Two: When we find 50 candle low, it needs to be coupled with RSI reading around 20 or lower. (If it’s a high it needs to be coupled with the RSI reading 80 or higher.) Step Three: Wait for a second price (low candle) to close after the first one that we already identified. Step Four: Wait for the price to head in the direction of the trade and wait for a candle to close above the first candle that you identified that was previous 50 candle low. Step Five: Place Stop Loss-This strategy follows a 1 risk to 3 reward ratio entry/exit points. Price action continues to the downside so we continue to move our entry order. When it breaks, it may be a strong reversal to the upside at 0.7360. Keep an eye one this pair today.
Long
by Tradingstrategyguides
1
Support and Resistance DefinedThe Traders Decisions at S & R Areas: This is a function of how we are wired as humans. The decisions to buy or to sell are made by analyzing the current price against previous areas which cause an emotional response to traders. They fear of missing out of on opportunity so they either buy or sell at these areas of support or resistance. So the support area is basically summed up as the demand overcomes the supply limiting the price to go down any further. Then resistance, is the area with the supply has been overcome with demand which limits an upward price movement. That is were you see a ‘Barrier” form. You will sometimes notice that a support/resistance area isn’t exacly a straight line which is why it is called an area. What happens is traders will make different decisions at different prices in this area. Never assume these areas will hold, however, they should always be areas of interest and you should take note of it when you see them.
Education
by Tradingstrategyguides
2