Disclaimer: This is not trading advice, this is just my own personal analysis, and strategy. Take it for what it's worth or leave it for what it's not.
First off all you have to know if we are in an uptrend, or down trend. There are many indicators of this, but one of the biggest is higher highs and higher lows on the daily for an uptrend, and lower highs and lower lows for a down trend.
If like me, and you can't short BTC (my brokerage [Robin the hood] doesn't allow it, I don't know about other methods of trading it.) We need to take a completely different strategy on trading it in a down trend to make money off it.
It's very simple, and I didn't invent it, but it's basically buy the dips, and sell the troughs on it's way down.
I like to use short term chart (6min18min) RSI as buy and sell signals in this circumstance.
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So first of all, as a U.S.A citizen, I can't use most exchanges where you can short BTC. But I think I finally found one (Kraken) where us US citizens actually can.
I am going through the process right now of applying.
It's much easier to make money on Crypto, if you have the ability to both go long and short. Not to mention use leverage.
I have been using Robbinhood to trade crypto, and their prices have been getting better (in fact beat coinbase) But I don't have any ability to short, not to mention use leverage. So I am pretty hamstrung using that platform alone in it's current state.
Well I have to say, I think this idea may be a dud. I tried it this past week, and lost money on it. It might be ok in a slow moving downtrend, but in unpredictable situations like this past week, where BTC can drop by over 10% in less then 48H, what looks like a buy signal can be a complete fake out. I would caution anyone from using this idea without some refinement. My other post still holds true though in an uptrend.
eb8
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This chart show that we have had two days of lower highs, and lower lows. So this it technically a down trend. Today's candle is still posting a lower high, but not a lower low yet, so the short term down trend is not confirmed yet.
eb8
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BTC is bonkers though. It can have a 200$ swing in 2 min, or a 1500$ swing in 15 min, so you have to right there up on it.
eb8
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If you want to be modern day john Henry, man/woman vs machine (algos/bots.)