Simple Cryptocurrency Buying And Selling Strategy

The simple Cryptocurrency Buying and Selling strategy entails the use of technical analysis to help crypto traders decide whether to buy or sell a specific cryptocurrency.

The strategy outlines a very simple concept that’s easy to understand.

There’ll be enough time to add complex actions after you’ve learned the essentials.

We outline an effective trading approach, illustrated with example charts that can be used on any virtual coin.

This strategy utilizes good timing in a bid to take full advantage of the numerous trading opportunities.

To keep things quite simple, we have adopted an extremely basic rule for entry and exiting positions.

Trade Setup 

Crypto MT4 Indicators: MACD_Colored_Histogram.ex4 (Default Setting), Williams’ Percent Range.ex4 (Parameters Modified; Period=36)

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 Simple Cryptocurrency Buying And Selling Strategy

Buy Trade Example: EOS/BIT (EOS / BIT), 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 lime and slate gray histograms of the MACD_Colored_Histogram digital currency indicator pop up above the 0.00 horizontal level (see Fig. 1.0), the general EOS/BIT market sentiment is said to be bullish, and therefore a buy alert will suffice.
  • If the aqua Williams’ Percent Range Metatrader 4 indicator line breaks above the -50.00 horizontal level as illustrated on Fig. 1.0, the EOS/BIT trading pair is said to be pressured higher i.e. a trigger to go long on the selected crypto pair.

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 the MACD_Colored_Histogram custom indicator displays a red histogram below the 0.00 horizontal level while a bullish trend is running, a bearish reversal is said to be on the horizon, thus an exit or take profit stance is recommended.
  • If the aqua line of the Williams’ Percent Range indicator realigns below the -50.00 horizontal level as depicted on Fig. 1.0, bulls power is said to be weaning, therefore an exit or take profit stance will do.

Sell Signal

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

  • If the red and slate gray histograms of the MACD_Colored_Histogram digital currency indicator get displayed below the 0.00 horizontal level as exemplified on Fig. 1.1, the overall EOS/BIT crypto market sentiment is said to be bearish, thus a trigger to go short on the trading pair of focus.
  • If the aqua Williams’ Percent Range indicator line adjust below the -50.00 horizontal level as seen on Fig. 1.1, the EOS/BIT trading pair is said to be pushed lower i.e. a trigger to go short on the crypto pair of focus.

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 the MACD_Colored_Histogram custom indicator displays a lime histogram above the 0.00 horizontal level during a bearish trend, a bullish reversal is said to be imminent, thus an exit or take profit stance is advised.
  • If the aqua line of the Williams’ Percent Range indicator readjust above the -50.00 horizontal level as shown on Fig. 1.1, bears power is said to be dissuading, thus a trigger to exit or take profit forthwith.

Sell Trade Example: EOS/BIT (EOS / BIT), H1 Chart

Fig. 1.1

Free Download

Download the Simple Cryptocurrency Buying And Selling Strategy

About The Cryptocurrency Technical Indicators Used

The MACD_Colored_Histogram digital currency indicator is a Moving Average Convergence/Divergence (MACD) variant with zero delay plus coloring.

The Williams Percent Range Metatrader 4 indicator is a momentum indicator that gauges overbought/ oversold levels and current market trends.

Easy Installation

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

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