The Best Altcoin Day Trading Strategy

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

Free Download

Download The Best Altcoin Day Trading Strategy

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 

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

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