Using Math-Derived Algorithm to Trade Cryptocurrency: #Bitcoin

I am using an algorithm to generate my indicator lines. This algorithm is based on mathematical calculation of price action. In this example we are trading #Bitcoin.
1. Note on this weekly chart of Bitcoin a breakout occurred on the week of May 1, 2023 with a close above the Blue support-resistance line. This line is mathematically-derived. It is proprietary.
2. We buy on close above this Blue support-resistance line.
3. We sit in the position and trail our stop up using this same Blue line.
4. If you stayed in the position, you are now up over 140% - Congrats!

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How to understand price action.

It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand.

You can also think of these indicators as moving pivot points.

MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade.

The Blue indicator line serves as a Bullish Trend setter.
If your instrument closes above the Blue line, we think about going Long (buying).

For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling).

For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts ). A stock has to close below the Yellow line first, then rally towards the Red line and top out there. This is where I would short it. Shorting is more difficult and should be done with extreme caution by novice traders.

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