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.
Comment
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1M histogram candle has closed today. Still larger than the previous month. Although it does seem to be losing momentum. Signal hasn't triggered.