Cryptocurrency Day Trading Strategy That Works

The essence of day trading is to yield quick and reliable profits over the course of a few hours or 1 day.

The cryptocurrency day trading strategy that works primarily looks at how crypto traders can profit from cryptocurrency trading on a daily basis.

The strategy takes advantages of the Commodity Channel Index indicator that works together with some other interesting technical indicators.

It works for beginners and seasoned crypto traders. Just try it out and see for yourself:

Trade Setup 

MT4 Indicators: Parabolic SAR of MA mtf.ex4 (Inputs Variable Modified; MaPeriod=24), delta-rsi-indicator.ex4 (Inputs Variable Modified; Fast RSI Period=24), Commodity Channel Index.ex4 (Parameters Modified; Period=28)

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 Cryptocurrency Day Trading Strategy That Works

Buy Trade Example: DASH/USD (Dash / US Dollar), M15 Chart

Fig. 1.0

Strategy Rules

Buy Signal

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

  • If the lime signal dot plus lime green line of the Parabolic SAR of MA mtf  MT4 indicator stays below the candlesticks as shown on Fig. 1.0, the general DASH market sentiment is said to be bullish, thus a trigger to go long on the selected cryptocurrency.
  • If the red and gray histograms of the delta-rsi-indicator indicator break above the 0.00 horizontal level as seen on Fig. 1.0, the DASH price momentum is said to be bullish, therefore a buy signal will suffice.
  • If the light sea green line of the Commodity Channel Index Metatrader 4 indicator stays above the 0.00 horizontal level (see Fig. 1.0), the selected cryptocurrency has its price being pushed higher, as such it is apt to go long.

Suggested Stop Loss for Buy Trade: Place stop loss below short-term support.

Suggested Exit Strategy/Take Profit for Buy Trade

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

  • If while a bullish trend is ongoing, the Parabolic SAR of MA mtf MT4 indicator displays a red signal ball on the crypto chart, DASH buyers are said to be closing their positions increasingly, thus an exit or take profit is advised.
  • If the gray line of the delta-rsi-indicator breaks below the 0.00 horizontal reference level as illustrated on Fig. 1.0, a bearish reversal is said to be imminent, thus an exit or take profit is recommended.
  • If the light sea green line of the Commodity Channel Index indicator readjust to break below the 0.00 level during a bullish trend, it is a signal to exit or take profit at once.

Sell Signal

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

  • If the red signal dot plus orange line of the Parabolic SAR of MA mtf MT4 indicator aligns above the price bars as shown on Fig. 1.1, the overall DASH market sentiment is said to be bearish, thus a trigger to sell the designated cryptocurrency.
  • If the green and gray histograms of the delta-rsi-indicator break below the 0.00 horizontal reference level as depicted on Fig. 1.1, the DASH price momentum is said to be bearish, therefore a sell signal will do.
  • If the light sea green line of the Commodity Channel Index indicator stays below the 0.00 signal level (refer to Fig. 1.1), price is said to be favoring bearish momentum i.e. a trigger to sell the cryptocurrency of interest.

Suggested Stop Loss for Sell Trade: Place stop loss above short-term resistance.

Suggested Exit Strategy/Take Profit for Sell Trade

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

  • If during a bearish trend, the Parabolic SAR of MA mtf MT4 indicator pops up a lime signal ball on the crypto chart as exemplified on Fig. 1.1, DASH sellers are said to be leaving the market in their droves, thus an exit or take profit stance is duly recommended.
  • If the gray line of the delta-rsi-indicator jumps above the 0.00 horizontal level as demonstrated on Fig. 1.1, a bullish reversal is said to be in the cards, thus an exit or take profit is advised.
  • If the light sea green line of the Commodity Channel Index indicator realigns to break above the 0.00 level during a bearish trend, it is a signal to exit or take profit immediately.

Sell Trade Example: DASH/USD (Dash / US Dollar), M15 Chart

Fig. 1.1

Free Download

Download the Cryptocurrency Day Trading Strategy That Works

About The Cryptocurrency Technical Indicators Used

The Parabolic SAR of MA mtf MT4 indicator is a multi-time frame modified Parabolic SAR indicator that is used to gauge the direction of a digital currency’s momentum.

The delta-rsi-indicator is a modified relative strength index indicator that quickly defines overbought/oversold price conditions within the crypto market.

The Commodity Channel Index is a momentum based indicator that falls under the oscillator family.

Regardless of its name, the CCI is not exclusively designed for the commodity market, but can also be applied to any crypto chart to gauge overbought/oversold conditions, along with spotting trends.

Easy Installation

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

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