Dec 17, · The EMA crossover strategy is geared towards finding the middle of the trend, and since it uses backwards-looking data, you will receive a signal only after something has already happened. How To Enter a Buy Position To enter a position you will need: To define the direction of the trend. Jan 06, · The three moving average crossover strategy is an approach to trading that uses 3 exponential moving averages of various lengths. All moving averages are lagging indicators however when used correctly, can help frame the market for a trader. Trading Bitcoin using Exponential moving averages If you are going to be a trader then you will need to pay attention to its exponential moving average. An exponential moving average (EMA) is a calculation that analyzes data points by creating a series of averages of parts of the whole data.
Bitcoin ema strategyThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
The good thing is we can judge momentum based on the separation of the averages as well as the distance price is from the averages. Adding in the needed breaks of swing levels in all trades except the continuation two method, ensures that price action is showing us a trending price pattern. What should be the nature of the trade? I appreciate your generosity to educate the traders by your so many mails and videos.
I have found them ti be educative. They are excellent mentoring. The shorter term trend is down while the longer term trade is still up. In this case, you are probably looking at a deeper pullback in the current trend. Managing the trade tighter than usual would be my next step if long. Good question. Since I trade off daily charts, I am always looking at more than 3 days and have held positions for the better part of the year.
That is especially true in currencies. There are the very obscure outliers that end the same day due to interventions or words from govt officials. Is there some way to be notified when a new blog post is published or an email list? Thanks Tre. Glad you enjoy the trading articles. That will have to be part of your rule set. I would be more concerned with the momentum of the pullback as seen in price. Search through our site as where are a few trading articles on pullbacks and what to look for.
Your email address will not be published. Website :. This site uses Akismet to reduce spam. Learn how your comment data is processed. Last updated on April 13th, The three moving average crossover strategy is an approach to trading that uses 3 exponential moving averages of various lengths. In this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and gain more confirmation.
The next step comes from the Ethereum trading strategy which will be used to identify Bitcoin trades. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy. Your chart setup should basically have 3 windows. One for the Bitcoin chart and the second one for the Ethereum chart. Last but not least, make one window for the OVB indicator. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same as in the figure above.
Simply put, we are going to look after price divergence between Bitcoin price and Ethereum. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency. For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence. And the Ethereum trading strategy as well. In the above figure, we can notice that Bitcoin's price fails to break above resistance while Ethereum's price broke above and made a new high.
This is the first sign that the best Bitcoin trading strategy is about to signal a trade. The same principles have been true for all the other major asset classes for decades. Before buying, we need confirmation from the OBV indicator.
This brings us to the next step of the best Bitcoin trading strategy. If Bitcoin is lagging behind the Ethereum price it means that sooner or later Bitcoin should follow Ethereum and break above the resistance. Simply put, the OBV is a remarkable technical indicator. It can show us if the real money is really buying Bitcoin or if they are selling. What we want to see when Bitcoin is failing to break above a resistance level or a swing high, and the Ethereum already broke, is for the OBV to increase in the direction of the trend.
We also want it to move beyond the level it was when Bitcoin was trading previously at this resistance level see figure below. Here is how to identify the right swing to boost your profit. Now, all it remains for us to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy. Once the OBV indicator gives us the green signal, all we have to do is to place a buy limit order.
Place the order at the resistance level in anticipation of the possible breakout. After all, we told you the OBV is an amazing indicator. Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy.
Placing the stop loss below the breakout candle is a smart way to trade. When it comes to our take profit, usually an OBV reading above , is an extreme reading that signals at least a pause in the trend. This is where we want to take profits. In the figure below, you can see an actual SELL trade example, using the best Bitcoin trading strategy. While bitcoin day trading does have some risks, there are many ways these risks can be reduced.
Here are some of the top ways to enhance your Bitcoin trading strategy. Maybe one day our fiat money system will go under and be completely replaced by cryptocurrencies. However, as long as there are still profits to be made from Forex currency trading we encourage you to read our receipt for Forex trading success: How to Make Money Trading — 2 Keys to Success. We hope that The Best Bitcoin Trading Strategy — has shed some light on how you can use the same technical analysis tools that you use for trading the Forex currency market to now trade the cryptocurrencies.
Ready to get started? Tap here now to get the E-Book Completely Free! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.
We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best. We want you to fully understand who we are as a Trading Educational Website We will send out many free trading strategies for you to learn and apply to your trading system right away Our team gathers a vast amount of information and comes up with some of the simplest and easiest trading strategies to follow each week.
We are highly motivated to do this for you because we love helping people succeed who are serious about trading. Our Goals. The crypto Market is the highest market now. You can be part of the people who are earning a living through trading cryptos. With just half a bitcoin, you can make up to 3 bitcoins in a week. Contact me via kramerp04 gmail. If you want to buy more bitcoins up to 0.
Forex Trading for Beginners. Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Info tradingstrategyguides. Facebook Twitter Youtube Instagram. How to Start Trading Bitcoin: The first thing you need to get started trading bitcoin is to open a bitcoin wallet. Moving averages like the EMA are best suited for trending markets than sideways markets.
The EMA indicator line shows an upward trend by hugging the price during surges and does the same downwards during crashes. The line flattens or reverses to indicate a rate of change in price. This is another important aspect that traders look at when attempting to forecast the future. A gradual flattening indicates a slowdown in momentum while a reversal indicates that price is gearing up to head to the opposite direction.
The almighty question is what EMAs are best for you to observe as a Bitcoin trader? It really depends on your trading strategy as an individual. Here at monfex. If your approach is more long term, then the 50 and EMAs will work for you just fine.
They are signals of long term trends and will indicate where markets will go in the future. An intra-day or short term trader would ideally look at the 12 and 26 EMAs which are indicators for short term price action. The EMAs work is a crossover to the upper side indicates a buy and a crossover to the lower side indicates a short. It is a mistake to only consider EMAs in your trading decisions.