BTCUSD and ETHUSD Short? Yes, we think so at least....
The Bitcoin surge in price and cryptocurrency trading mania has got a lot of mainstream attention. Today’s post is all about the cryptocurrency trading strategy that you’ve probably been hearing so much about. There are tons of cryptocurrency trading strategies and this is just another one to learn.
The trading bitcoin for profit is actually a universal cryptocurrency trading strategy that can be used to trade any of the 800-plus cryptocurrencies available to trade as of today. If you’re not already familiar with cryptocurrencies it’s best to first start with a brief introduction.
What is a Cryptocurrency?
At the most basic level, a cryptocurrency is really no different than the money you have in your wallet in the sense that they have no intrinsic value and cryptocurrency are just bits of data while real money is just pieces of paper.
Good Bitcoin trading strategy
Unlike fiat money, Bitcoins and other cryptocurrencies have no central bank that controls them which means that cryptocurrencies can be sent directly from user to user without any credit cards or banks acting as the intermediary. The major advantage of cryptocurrencies is that you can’t print them like central banks do to create fiat money.
When you print lots of money, inflation goes up which makes the currency value going down. Since there is a limited amount of Bitcoins and this holds true for the majority of the other cryptocurrencies, the supply side can’t increase which makes Bitcoin less prone to being affected by inflation.
Now, let’s move forward and see how we can profit from the cryptocurrency mania by using our Bitcoin trading strategy.
On the chart above you see that we have the following:
#1 BTCUSD
#2 ETHUSD
# OBV Indicator -On Balance Volume (OBV): This is one of the best indicators for day trading bitcoin used to basically analyze the total money flow in an out of an instrument. The OVB uses a combination of volume and price activity to tell you what is the total amount of money going in and out of the market. if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally so the move to the upside wouldn’t be sustainable. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up.
What we really want to see is the OBV moving in the same direction as the Bitcoin price. Later on, you’ll learn how to apply this information together with the cryptocurrency trading strategy.
No technical indicator is 100% effective every single time and in this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and give some more confirmation of our trades. On this part comes the Ethereum trading strategy which will be used to identify Bitcoin trades.
The purpose of having these three element is that they all work in sync to give to trade entries consistently.
So as you can see that BTCUSD and ETHUSD are both in a channel or triangle pattern on the H1 chart.
The OBV is slowly creeping up and soon to test the bottom of our support like we drew.
If the ETCUSD and the OBV Indicator both break these lines we are short all day with these!
We think there is room for this pair to head to the downside so we will be short if this happens.
This is an advanced entry to our strategy and we had to post this when we saw it! This three headed monster is the best way (we think) to analyze these consistently
What do you guys think?
Comments, questions, concerns, love, hate, all is welcome :)
We hope this is helpful and we plan on doing detailed post more often for you guys so if you find this useful please like it and spread the word!!
The trading bitcoin for profit is actually a universal cryptocurrency trading strategy that can be used to trade any of the 800-plus cryptocurrencies available to trade as of today. If you’re not already familiar with cryptocurrencies it’s best to first start with a brief introduction.
What is a Cryptocurrency?
At the most basic level, a cryptocurrency is really no different than the money you have in your wallet in the sense that they have no intrinsic value and cryptocurrency are just bits of data while real money is just pieces of paper.
Good Bitcoin trading strategy
Unlike fiat money, Bitcoins and other cryptocurrencies have no central bank that controls them which means that cryptocurrencies can be sent directly from user to user without any credit cards or banks acting as the intermediary. The major advantage of cryptocurrencies is that you can’t print them like central banks do to create fiat money.
When you print lots of money, inflation goes up which makes the currency value going down. Since there is a limited amount of Bitcoins and this holds true for the majority of the other cryptocurrencies, the supply side can’t increase which makes Bitcoin less prone to being affected by inflation.
Now, let’s move forward and see how we can profit from the cryptocurrency mania by using our Bitcoin trading strategy.
On the chart above you see that we have the following:
#1 BTCUSD
#2 ETHUSD
# OBV Indicator -On Balance Volume (OBV): This is one of the best indicators for day trading bitcoin used to basically analyze the total money flow in an out of an instrument. The OVB uses a combination of volume and price activity to tell you what is the total amount of money going in and out of the market. if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally so the move to the upside wouldn’t be sustainable. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up.
What we really want to see is the OBV moving in the same direction as the Bitcoin price. Later on, you’ll learn how to apply this information together with the cryptocurrency trading strategy.
No technical indicator is 100% effective every single time and in this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and give some more confirmation of our trades. On this part comes the Ethereum trading strategy which will be used to identify Bitcoin trades.
The purpose of having these three element is that they all work in sync to give to trade entries consistently.
So as you can see that BTCUSD and ETHUSD are both in a channel or triangle pattern on the H1 chart.
The OBV is slowly creeping up and soon to test the bottom of our support like we drew.
If the ETCUSD and the OBV Indicator both break these lines we are short all day with these!
We think there is room for this pair to head to the downside so we will be short if this happens.
This is an advanced entry to our strategy and we had to post this when we saw it! This three headed monster is the best way (we think) to analyze these consistently
What do you guys think?
Comments, questions, concerns, love, hate, all is welcome :)
We hope this is helpful and we plan on doing detailed post more often for you guys so if you find this useful please like it and spread the word!!
Come learn a new trading strategy at tradingstrategyguides.com?utm_source=tradingview
Our free Telegram channel: t.me/TradingStrategyGuides
Our free Telegram channel: t.me/TradingStrategyGuides
