In order to succeed at day trading, a trader must be able to determine the market best trend.
The best altcoin day trading strategy is designed to help cryptocurrency traders execute buy/sell market orders fast using just a few simple technical indicators.
You’ll be able to quickly tell if a trend is flat (when price trades within a narrow range), or mostly witnessing a possible reversal if you clearly take note of our trading rules.
Our analysis is being carried out on the 15-minute Bitcoin Cash chart but it also works on any other timeframe and cryptocurrency of your preference.
Trade Setup
MT4 Indicators: half-trend.ex4 (Inputs Variable Modified; Amplitude=7), hma-smoothed.ex4 (inputs Variable Modified; HmaPeriod=70), Relative Vigor Index.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
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Download The Best Altcoin Day Trading Strategy
Buy Trade Example: BCH/USD (BCash / 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 deep sky blue line of the half-trend indicator stays positioned somewhat below the candlesticks as illustrated on Fig. 1.0, the general BCASH market sentiment is said to be bullish i.e. a trigger to go long on Bitcoin Cash.
- If the lime green bars of the hma-smoothed indicator gets aligned within the indicator window as depicted on Fig. 1.0, price of BCash altcoin is said to support bullish sentiment, and therefore a buy signal is looming.
- If the green and red lines of the Relative Vigor Index Metatrader 4 indicator break and hover above the 0.00 horizontal level, price is said to be pressured to the upside i.e. a buy alert is recommended.
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 while a bullish trend is running and the half-trend-crypto indicator line reverts to tomato, price is said to be making a likely reversal, as such an exit or take profit will do.
- If the hma-smoothed indicator displays a dark orange bar during a bullish trend (see Fig. 1.0), it is signaling a possible bearish reversal, hence an exit or take profit stance is recommended.
- If the green line of the Relative Vigor Index indicator falls below the 0.00 signal level while a bullish trend is ongoing, exit or take profit at once.
Sell Signal
Open a sell trade if the following trading conditions appear on the crypto chart:
- If the tomato line of the half-trend MT4 indicator stays positioned fairly above the price bars as shown on Fig. 1.1, the overall BCASH market sentiment is said to be bearish i.e. a trigger to go short on Bitcoin Cash.
- If the dark orange bars of the hma-smoothed indicator gets aligned within the indicator window as exemplified on Fig. 1.1, price of BCash altcoin is said to support bearish sentiment, and therefore a sell signal is on the horizon.
- If the green and red lines of the Relative Vigor Index digital currency indicator break and hover below the 0.00 horizontal level, price is said to be dragged lower, as such a sell alert is advised.
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 while a bearish trend is ongoing and the half-trend indicator line reverts to deep sky blue, price is said to be making a probable U-turn, as such an exit or take profit stance is apt.
- If the hma-smoothed indicator displays a lime green bar while the bearish trend is ongoing (refer to Fig. 1.1), it is pointing to diminishing bears power, hence an exit or take profit stance is advised.
- If the green line of the Relative Vigor Index indicator surges above the 0.00 signal level while a bearish trend is running, exit or take profit immediately.
Sell Trade Example: BCH/USD (BCash / US Dollar), M15 Chart
Fig. 1.1
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About The Cryptocurrency Technical Indicators Used
The half-trend metatrader 4 technical indicator is used to measure trend reversals within the crypto market.
The hma-smoothed MT4 indicator is a trend following indicator that functions as a signal filter.
It is based on the Hull Moving Average.
The Relative Vigor Index is a default Metatrader 4 indicator that is deployed in gauging the conviction of a recent price action and the probability that it will carry on.
Easy Installation
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