Ethereum Investing Strategy

The Ethereum investing strategy is formulated to help cryptocurrency traders benefit from large price swings in ETH and other digital coins.

We will be trading off the daily time frame to capture large price swings in the ETH digital coin.

The strategy can also be applied to smaller time frames such as the hourly and 5-minute chart for day trading purposes.

Let’s now explore how you can make profits from trading with the Ethereum investing strategy.

Trade Setup 

MT4 Indicators: forex-cloud-indicator.ex4 (Colors Width Modified; #0=2, #1=2, #2=2, #3=2, #4=2, #5=2), MACD.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 Ethereum Investing Strategy

Buy Trade Example: ETH/USD (Ethereum / US Dollar), D1 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 cloud of the forex-cloud-indicator stays somewhat below the candlesticks as depicted on Fig. 1.0, the price of Ethereum is said to be pressured higher, therefore a buy trigger is said to be imminent.
  • If the silver histograms of the MACD Metatrader 4 indicator break and hover above the 0.00 horizontal level as illustrated on Fig. 1.0, the overall ETH market sentiment is said to be bullish, thus a signal to buy

Suggested Stop Loss for Buy Trade: Place stop loss below 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 running, the forex-cloud-indicator displays a red cloud as seen on Fig. 1.0, ETH is said to be entering a likely bearish reversal phase, and as such an exit or take profit will suffice.
  • If the MACD indicator shoots a silver histogram below the 0.00 reference level while a buy signal is ongoing, it is a signal to exit or take profit on

Sell Signal

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

  • If the red cloud of the forex-cloud-indicator stays fairly above the price bars as seen on Fig. 1.1, the price of Ethereum is said to be in a possible downward slide, therefore a sell trigger is said to be in the cards.
  • If the silver histograms of the MACD indicator break and hover below the 0.00 horizontal level as exemplified on Fig. 1.1, the general ETH market sentiment is said to be bearish, thus a signal to go short on Ethereum.

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

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 ongoing, the forex-cloud-indicator pops up a lime cloud as shown on Fig. 1.1, ETH is said to be approaching a probable bullish reversal, and as such an exit or take profit will do.
  • If the silver histograms of the MACD indicator realign to form above the 0.00 horizontal level during a bearish trend, it is a signal to exit or take profit.

Sell Trade Example: ETH/USD (Ethereum / US Dollar), D1 Chart

Fig. 1.1

Free Download

Download the Ethereum Investing Strategy

About The Cryptocurrency Technical Indicators Used

The forex-cloud-indicator resembles a cloud the way it sits itself above or below price bars, offering an overall market direction for any digital currency.

The MACD is a multipurpose tool deployed in identifying and following strong trends in cryptocurrencies, while also catching trend reversals.

Easy Installation

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

Share Now!