BTC Macro Entry Reversal Strategy. Highest risk return.
Entry point for BTC based on momentum reversing out of the bear market. For those trading on confirmation and solid risk reward ratios.
Find a safe bottom, not necessarily the lowest price.
Strategy
1. The major buy signal comes when the first Heikin Ashi 1M closes green. (This was once printed in June 2014. But a high RSI would falsify the signal trigger)
2. Looking deeper into the MACD . We want to see a shorter Histogram close in the monthly. (Where a histogram peak is formed)
3. This is usually confirmed by a healthy sign of the Stoch RSI closing blue over orange.
4. If you're even more conservative. After the signal, I'd wait for an spike in volume.
Notes.
- My personal prediction is that BTC falls 85% towards 11k. However the strategy is triggered at a price the market has decided. The most important part is the risk adjusted return.
- The strategy is best aligned to Lump Sum entry.
- The histogram will peak. It's a matter of when. Therefore I'm not interested in the price.
- I suggest replaying BTCUSD in past cycles on standard bars to see how the bars are printed. (H-A won't work on replay)
- The strategy only has 2 major data points. I'd prefer 3. But the higher time frames install greater confidence.
Tickers and Indicators.
- BTCUSD INDEX 1M, HeikinAshi.
- RSI and Stoch RSI .
- MACD with histogram.
Find a safe bottom, not necessarily the lowest price.
Strategy
1. The major buy signal comes when the first Heikin Ashi 1M closes green. (This was once printed in June 2014. But a high RSI would falsify the signal trigger)
2. Looking deeper into the MACD . We want to see a shorter Histogram close in the monthly. (Where a histogram peak is formed)
3. This is usually confirmed by a healthy sign of the Stoch RSI closing blue over orange.
4. If you're even more conservative. After the signal, I'd wait for an spike in volume.
Notes.
- My personal prediction is that BTC falls 85% towards 11k. However the strategy is triggered at a price the market has decided. The most important part is the risk adjusted return.
- The strategy is best aligned to Lump Sum entry.
- The histogram will peak. It's a matter of when. Therefore I'm not interested in the price.
- I suggest replaying BTCUSD in past cycles on standard bars to see how the bars are printed. (H-A won't work on replay)
- The strategy only has 2 major data points. I'd prefer 3. But the higher time frames install greater confidence.
Tickers and Indicators.
- BTCUSD INDEX 1M, HeikinAshi.
- RSI and Stoch RSI .
- MACD with histogram.
Comment:
1M histogram candle has closed today. Still larger than the previous month. Although it does seem to be losing momentum. Signal hasn't triggered.