Bitcoin Trading System

The Bitcoin Trading System is purely a technical analysis approach that does not make use of any fundamental analysis.

There are fixed buy and sell rules that are pivotal to its entry and exit criteria, while a crypto trader’s continued success is dependent on its adherence.

Some of the things that you’ll be able to accomplish using this system is its ability to gauge the Bitcoin strength and direction of the underlying trend with decent accuracy, along with its capacity to flag a possible change in Bitcoin price beforehand.

Interestingly, the system works on varying timeframes regardless of whether you’re a day trader, position trader or even swing trader.

Well, let’s get started….

Trade Setup 

MT4 Indicators: Moving Average.ex4 (Parameters Modified; Period=37, Style=Medium Blue), Parabolic SAR of MA mtf.ex4 (Inputs Variable Modified; MaPeriod=28), octopus.ex4 (Default Setting)

Suitable for: Scalping, day trading, swing trading, investing

Trading Time: 24/7, Around the Clock

Cryptocurrency: Any (Bitcoin and Altcoins)

Timeframes: Any

Download

Download the Bitcoin Trading System

Buy Trade Example: BTC/USD (Bitcoin / US Dollar), H1

Fig. 1.0

Strategy Rules

Buy Signal

Open a buy trade if the following trading conditions appear on the crypto chart:

  • If the blue 37 SMA Metatrader 4 indicator line crosses below the lime green Parabolic SAR of MA mtf indicator line as illustrated on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated cryptocurrency.
  • If the green vertical bars of the octopus custom MT4 indicator gets aligned within its indicator window as shown on Fig. 1.0, the price of Bitcoin is said to be pressured higher, as such a buy alert will suffice.

Suggested Stop Loss for Buy Trade: Place stop loss below the blue rising support line.

Suggested Exit Strategy/Take Profit for Buy Trade

Exit the buy trade if the following trading conditions appear on the chart:

  • If the blue 37 SMA indicator line crosses the somewhat orange line section of the Parabolic SAR of MA mtf indicator while a bullish trend is on course, Bitcoin price is said to be making a likely bearish reversal, therefore an exit or take profit stance is recommended.
  • If the octopus currency indicator pops up a red vertical bar within its indicator window as depicted on Fig. 1.0, bitcoin bulls power is said to be diminishing, thus a trigger to exit or take profit immediately.

Sell Signal

Open a sell trade if the following trading conditions appear on the crypto chart:

  • If the blue 37 SMA indicator line crosses above the orange Parabolic SAR of MA mtf indicator line as exemplified on Fig. 1.1, price is said to be dragged lower, hence a sell signal is apt.
  • If the red vertical bars of the octopus custom indicator gets stacked within its indicator window as seen on Fig. 1.1, Bitcoin price is said to be making lower lows, therefore a trigger to go short on the designated cryptocurrency.

Suggested Stop Loss for Sell Trade: Place stop loss above the blue falling resistance line.

Suggested Exit Strategy/Take Profit for Sell Trade

Exit the sell trade if the following trading conditions appear on the chart:

  • If while a bearish trend is running, the blue 37 SMA indicator line crosses the rather lime green line section of the Parabolic SAR of MA mtf indicator, it is signaling a probable weaning bears power, therefore an exit or take profit stance is advised.
  • If the octopus currency indicator pops up a green vertical bar within its indicator window (see Fig. 1.1), Bitcoin bears power is said to be halting, thus a trigger to exit or take profit at once.

Sell Trade Example: BTC/USD (Bitcoin / US Dollar), H1 Chart

Free Download

Download the Bitcoin Trading System

About The Cryptocurrency Technical Indicators Used

The 37 SMA (Simple Moving Average) is a technical analysis indicator that smoothens out crypto price data by constantly creating an updated average price.

The Parabolic SAR of MA mtf is a modified multi-time frame Parabolic SAR indicator that is used to gauge the direction of a digital currency’s momentum.

The octopus custom MT4 indicator is a trend indicator that displays vertical bars within its window.

Green bars typifies a buy signal, while red bars indicates a corresponding sell.

Easy Installation

Start using this cryptocurrency system in just 5 minutes. Click here to get started now.

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