The Best Ethereum Trading Strategy

The Ethereum trading strategy is crafted to detect trends and make the best out of mechanical trading once you place the selected indicators on your MT4 chart.

We are adopting a successful trading approach that doesn’t depend on the cryptocurrency market conditions.

Consequently, we know Ether (ETH) has become one of the most popularly traded digital currency.

The constant fluctuation of token prices creates the perfect condition for trading ETH.

Implementing the best Ethereum trading strategy will enable traders take advantage of ETH price movements in both directions to yield profits.

And when you add margin trading to this digital currency, you’re sure on track to magnifying such gains.

Trade Setup 

MT4 Indicators: FollowLine_v1.3.ex4 (Inputs Variable Modified; BBPeriod=36), 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 Ethereum Trading 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 green and red lines of the Relative Vigor Index digital currency indicator break and stay above the 0.00 horizontal level (see Fig. 1.0), the price of Ethereum is said to be pushed higher, therefore a buy alert will suffice.
  • If the spring green upward pointing arrow and an accompanying deep sky blue line of the FollowLine_v1.3 indicator gets positioned somewhat below the price bars as shown on Fig. 1.0, the general ETH market sentiment is said to be bullish, thus a buy signal will do.

Suggested Stop Loss for Buy Trade: Place stop loss below key 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 green line of the Relative Vigor Index Metatrader 4 indicator falls below the 0.00 level, it is pointing to a likely weaning bulls strength, as such an exit or take profit stance is duly advised.
  • If the FollowLine_v1.3 indicator displays a yellow downward pointing arrow as illustrated on Fig. 1.0, a bearish reversal is said to be looming, thus an exit or take profit posture is recommended.

Sell Signal

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

  • If the green and red lines of the Relative Vigor Index digital currency indicator break and stay below the 0.00 horizontal level (refer to Fig. 1.1), the price of Ethereum is said to be dragged lower i.e. a trigger to go short on the designated cryptocurrency.
  • If the yellow downward pointing arrow and an accompanying crimson line of the FollowLine_v1.3 indicator gets aligned fairly above the candlesticks as depicted on Fig. 1.1, the overall ETH market sentiment is said to be bearish, thus a sell signal will suffice.

Suggested Stop Loss for Sell Trade: Place stop loss above key 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 green line of the Relative Vigor Index cryptocurrency indicator surges above the 0.00 level, it is pointing to a probable halting bears strength, as such an exit or take profit stance is duly recommended.
  • If the FollowLine_v1.3  indicator displays a spring green upward pointing arrow as exemplified on Fig. 1.1, a bullish reversal is said to be imminent, thus an exit or take profit posture is advised.

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

Fig. 1.1

Free Download

Download The Best Ethereum Trading Strategy

About The Cryptocurrency Technical Indicators Used

The FollowLine_v1.3 indicator deploys the Bollinger Bands lines to spot crypto market trends.

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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