Cryptocurrency Trading Strategy

The cryptocurrency trading strategy is designed to allow crypto traders survive the volatility present within most of the crypto coins.

The strategy follows the major trend and can be used for scalping, day trading and swing trading digital coins.

Some traders report over 70% wins with the simple strategy!

So be patient as we walk you through the trading rules.

Trade Setup 

MT4 Indicators: curver-arrows.ex4 (Inputs Variable Modified; SSP=18, SkyCh=20), Stochastic Oscillator.ex4 (Parameters Modified; %K period=18, %D period=12, Slowing=12)

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 Trading Strategy

Buy Trade Example: XRP/USD (Ripple / 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 upward pointing arrow of the curver-arrows indicator gets displayed somewhat below the price bars as shown on Fig. 1.0, the price of Ripple is said to be in favor of upward risk, therefore a buy alert will suffice.
  • If the light sea green and dotted red lines of the Stochastic oscillator Metatrader 4 indicator break and hover above the 50.00 horizontal level (see Fig. 1.0), the general Ripple coin market sentiment is said to be bullish i.e. a trigger to go long on the designated cryptocurrency.

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

Suggested Exit Strategy/Take Profit for Buy Trade

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

  • If the red downward pointing arrow of the curver-arrows MT4 indicator gets placed somewhat above the candlesticks as shown on Fig. 1.0, a bearish reversal is said to be imminent, as such an exit or take profit is recommended.
  • If the light sea green line of the Stochastic oscillator dips below the 50.00 horizontal level while a bullish trend is ongoing, bulls power is said to be weaning, hence an exit or take profit is advised.

Sell Signal

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

  • If the red downward pointing arrow of the curver-arrows indicator gets displayed fairly above the price bars as seen on Fig. 1.1, the price of Ripple is said to be in favor of downward risk, therefore a sell alert will do.
  • If the light sea green and dotted red lines of the Stochastic oscillator break below the 50.00 horizontal level (refer to Fig. 1.1), the overall Ripple market sentiment is said to be bearish i.e. a trigger to go short on the cryptocurrency of interest.

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

Suggested Exit Strategy/Take Profit for Sell Trade

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

  • If the blue upward pointing arrow of the curver-arrows MT4 indicator pops up fairly below the price bars as exemplified on Fig. 1.1, a bullish reversal is said to be in the cards, therefore an exit or take profit stance is advised.
  • If the light sea green line of the Stochastic oscillator surges above the 50.00 horizontal level while a bearish trend is running, bears power is said to be halting, hence an exit or take profit stance is apt.

Sell Trade Example: XRP/USD (Ripple / US Dollar), H1 Chart

Fig. 1.1

Free Download

Download the Cryptocurrency Trading Strategy

About The Cryptocurrency Technical Indicators Used

The curver-arrows MT4 indicator displays a band around price, with arrows (blue and red) used in denoting bullish and bearish market trends respectively.

The Stochastic oscillator is a custom Metatrader 4 indicator that can be applied to the cryptocurrency market to help traders gauge the relationship between a digital currency’s closing price and its price range over a specified time period.

Easy Installation

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

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