Hello!
While I was playing around with some charts today I realised that combining a traditional size 100 Renko chart with an Ichimoku Cloud on default settings (without the lagging span, that's pretty much useless) results in an incredibly powerful long term Bitcoin trend indicator that called the ends of the last two bull runs within 10% (2019) and 13% (2017) from the top.
As you can clearly see, simply buying when the price crosses above the cloud with the cloud turning bullish and selling when it closes below with the cloud turning bearish would result in extremely highly profitable trades. Even during the 2018 bear market if for some unclear reason you wanted to long the dips instead of shorting the tops, with this strategy you'd end up at worst with some small losses or breakevens. Shorting breaks below the cloud, on the other hand, would get you lots of really profitable trades. You can also use 20 and 60 EMAs as additional confirmation if you so desire.
I highlighted on the chart the entry and exit signals for both the bull runs, along with potential long positions that'd give you 275% and 125% returns, respectively, and that's without leverage.
I put those few vertical lines to mark how much of the Cloud would be visible at my designated entry/exit points, given that the Cloud as we know is visible 26 bars ahead of the current bar.
As to where we are right now, as you can see it's really hard to tell. We're currently inside the cloud and the cloud is slowly turning bullish, so there's a chance of it being the bottom, but there's no way to tell. If it decisively breaks above the cloud and comfortably stays above, which would be either at 8300 or 8400 depending on how much confirmation you want, we might have a really good long term long opportunity on our hands.
We'll have to wait and see though. It might be a false breakout just like the one on October 27th. Even if you longed that, you still would've seen a clear exit once the price started going back inside the cloud with a loss of around 3%.
What do you guys think about this idea/way of long term trading? I'd extremely appreciate any feedback you might have so please comment and tell me what you think. Good luck trading out there!
While I was playing around with some charts today I realised that combining a traditional size 100 Renko chart with an Ichimoku Cloud on default settings (without the lagging span, that's pretty much useless) results in an incredibly powerful long term Bitcoin trend indicator that called the ends of the last two bull runs within 10% (2019) and 13% (2017) from the top.
As you can clearly see, simply buying when the price crosses above the cloud with the cloud turning bullish and selling when it closes below with the cloud turning bearish would result in extremely highly profitable trades. Even during the 2018 bear market if for some unclear reason you wanted to long the dips instead of shorting the tops, with this strategy you'd end up at worst with some small losses or breakevens. Shorting breaks below the cloud, on the other hand, would get you lots of really profitable trades. You can also use 20 and 60 EMAs as additional confirmation if you so desire.
I highlighted on the chart the entry and exit signals for both the bull runs, along with potential long positions that'd give you 275% and 125% returns, respectively, and that's without leverage.
I put those few vertical lines to mark how much of the Cloud would be visible at my designated entry/exit points, given that the Cloud as we know is visible 26 bars ahead of the current bar.
As to where we are right now, as you can see it's really hard to tell. We're currently inside the cloud and the cloud is slowly turning bullish, so there's a chance of it being the bottom, but there's no way to tell. If it decisively breaks above the cloud and comfortably stays above, which would be either at 8300 or 8400 depending on how much confirmation you want, we might have a really good long term long opportunity on our hands.
We'll have to wait and see though. It might be a false breakout just like the one on October 27th. Even if you longed that, you still would've seen a clear exit once the price started going back inside the cloud with a loss of around 3%.
What do you guys think about this idea/way of long term trading? I'd extremely appreciate any feedback you might have so please comment and tell me what you think. Good luck trading out there!