The Best Bitcoin Day Trading Strategy

The best Bitcoin day trading strategy is designed to help cryptocurrency day traders profit big from the volatile up and down moves that occur in Bitcoin on a daily basis.

One of the main attractions of day trading Bitcoin (BTC) or any other liquid coin is the rapid fluctuation of prices.

Bitcoin alone has a market capitalization of $180 billion in excess, thus providing an ample source of liquidity.

Day traders can make profits from both short and long trades in Bitcoin.

Moreover, this strategy is designed to work with any cryptocurrency of your preference.

Trade Setup 

MT4 Indicators: alternative-ichimoku.ex4 (Colors Modified; #4=Yellow, #5=Lime, Colors Width Modified; #4=2), alligator-signal-indicator.ex4 (Default Setting), 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 Best Bitcoin Day Trading Strategy

Buy Trade Example: BTC/USD (Bitcoin / US Dollar), M5 Chart

Fig. 1.0

Strategy Rules

Buy Signal

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

  • If the yellow line of the alternative-ichimoku MT4 indicator crosses below the lines (green, red & blue) of the alligator-signal-indicator as shown on Fig. 1.0, the Bitcoin price is said to be pushed somewhat higher i.e. a trigger to buy the designated cryptocurrency.
  • If the silver histograms of the MACD Metatrader 4 indicator pops up above the 0.00 horizontal level as illustrated on Fig. 1.0, the BTC/USD cryptocurrency is said to be experiencing upward pressures, thus a trigger to go long.

Suggested Stop Loss for Buy Trade: Place stop loss below short-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 ongoing, the yellow line of the alternative-ichimoku MT4 indicator crosses above the lines (green, red & blue) of the alligator-signal-indicator, it is a signal to exit or take profit at once.
  • If the silver histograms of the MACD indicator readjust to appear below the 0.00 level as seen on Fig. 1.0, bullish BTC/USD momentum is said to be diminishing, therefore an exit or take profit will suffice.

Sell Signal

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

  • If the yellow line of the alternative-ichimoku MT4 indicator crosses above the lines (green, red & blue) of the alligator-signal-indicator as exemplified on Fig. 1.1, the Bitcoin price is said to be dragged lower i.e. a trigger to sell the selected cryptocurrency.
  • If the silver histograms of the MACD indicator aligns below the 0.00 horizontal level as depicted on Fig. 1.1, bearish pressures is said to be building within the BTC/USD crypto chart, thus a trigger to go short.

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

Suggested Exit Strategy/Take Profit for Sell Trade

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

  • If during a bearish trend, the yellow line of the alternative-ichimoku MT4 indicator crosses below the lines (green, red & blue) of the alligator-signal-indicator, it is pointing to diminishing bears power within the BTC/USD price structure, hence an exit or take profit stance is recommended.
  • If the silver histograms of the MACD indicator realigns to pop up above the 0.00 level as seen on Fig. 1.1, a bullish reversal is said to be likely within the BTC/USD, as such an exit or take profit will do.

Sell Trade Example: BTC/USD (Bitcoin / US Dollar), M5 Chart

Fig. 1.1

Free Download

Download the Best Bitcoin Day Trading Strategy

About The Cryptocurrency Technical Indicators Used

The alternative-ichimoku MT4 indicator was designed as an alternative to the well-known indicator Ichimoku Kinko Hyo.

The indicator is used to gauge momentum in line with likely areas of support and resistance on the crypto chart.

The alligator-signal-indicator for MT4 is a modified Bill Williams indicator.

The indicator is comprised of three lines that overlay on the crypto chart.

The lines represent the jaw (blue line), the teeth (red line) and the lips (green line) of the Alligator.

Cryptocurrency traders tend to use this indicator to gauge trend and its probable direction.

The MACD is a default indicator found on the MT4 platform.

It is a multipurpose tool deployed in identifying and following strong trends in cryptocurrencies while also catching trend reversals fast.

Easy Installation

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

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