Cryptocurrency Exit Trading Strategy

The first step towards profitability is actually looking for the right strategy that can help you climb the success ladder in the cryptocurrency trading community.

One of the advantages of adopting the cryptocurrency exit strategy is that it’s made up of a set of very detailed trading setups, along with explanations of precise market scenarios that will offer us buy and sell signals with the best possible exits to take profit.

Then again, the primary intention of this trading strategy is to teach the reader how profitable digital currency trading functions in detail so he can be independent of people trying to tell him what to do.

With this awesome profitable trading strategy, you’ll definitely get to know how things flow in the cryptocurrency world.

Trade Setup 

MT4 Indicators: jrsx-oscillator.ex4 (Inputs Variable Modified; Length=28, CountBars=300000, Color Width Modified; #0=2, #1=2), Average Directional Movement 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 Exit Strategy

Buy Trade Example: XMR/USD (Monero / US Dollar), H1 Chart

Fig. 1.0

Strategy Rules

Buy Signal

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

  • If the blue and magenta histograms of the jrsx-oscillator currency trading indicator stay above the 0.00 signal level as indicated on Fig. 1.0, the general Monero market sentiment is said to be bullish, thus a trigger to go long on the desired cryptocurrency..
  • If the DMI (light sea green) line of the Average Directional Movement Index Metatrader 4 currency indicator breaks above the 20.00 level, while the DI+ (yellow green) line aligns above the DI- (wheat) line (see Fig. 1.0), it is an indication that Monero price is being pushed higher, as such a buy alert will suffice.

Suggested Stop Loss for Buy Trade: Place stop loss below previous swing low support.

Suggested Exit Strategy/Take Profit for Buy Trade

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

  • If the jrsx-oscillator indicator displays a magenta histogram below the 0.00 horizontal level while a bullish trend is running, Monero price is said to be making a bearish reversal, therefore an exit or take profit is recommended.
  • If while a bullish trend is running the light sea green DMI line breaks below the 20.00 level as illustrated on Fig. 1.0, it denotes weak bullish Monero price sentiment, thus 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 blue and magenta histograms of the jrsx-oscillator currency trading indicator stay below the 0.00 horizontal level as illustrated on Fig. 1.1, the overall Monero market sentiment is said to be bearish, as such a trigger to go short on the designated cryptocurrency..
  • If the DMI (light sea green) line of the Average Directional Movement Index indicator breaks above the 20.00 level, while the DI- (wheat) line gets aligned above the DI+ (yellow green) line as exemplified on Fig. 1.1, it is an indication that Monero price is being dragged lower, as such a sell signal is right..

Suggested Stop Loss for Sell Trade: Place stop loss above previous swing high resistance.

Suggested Exit Strategy/Take Profit for Sell Trade

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

  • If the jrsx-oscillator indicator puts up a blue histogram above the 0.00 horizontal level while a bearish trend is ongoing (refer to Fig. 1.1), Monero price is said to be making a bullish reversal, therefore an exit or take profit stance is advised.
  • If the light sea green DMI line of the ADX indicator breaks below the 20.00 level, it denotes diminishing Monero bearish price sentiment, thus a signal to exit or take profit immediately.

Sell Trade Example: XMR/USD (Monero / US Dollar), H1 Chart

Fig. 1.1

Free Download

Download the Cryptocurrency Exit Strategy

About The Cryptocurrency Technical Indicators Used

The jrsx-oscillator is a currency indicator that finds use when confirming crypto market trends.

It is quite simple, very similar to the classic oscillators and deploys precisely the same methods of technical analysis that can be applied to the RSI.

The Average Directional Movement Index or ADX indicator is one that quantifies the strength of a cryptocurrency price trend.

The default period value is set at 14 bars, although other time periods can also be tested.

Easy Installation

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

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