How-to Find A Profitable Grid
Using The "Grid Range Finder" Indicator.
WHAT TO LOOK FOR...
The best GRIDS are placed in sideways channels, consolidation areas, ranging markets and slowly upward trend areas. In seeking a place to start your next grid, you should seek out support areas, preferably during a sideways or upwardly trending time period. It's near impossible to predict how long this type market condition might last, but the ideal grid will run for 2 days+. Some grids can run for months!
Did you miss my previous GRID TRADE tutorials? (Start from the beginning)
ESTABLISH A RANGE
Your next task is to determine a range depth for your grid (I suggest 4% to 8% as measured on the chart - though you may find other measurements better depending on the crypto you're trading, the average market and your available capital). This is why, when using the "GRID RANGE FINDER INDICATOR" you'll appreciate the "Auto-Fibonacci Lines" added to help in projecting how high or deep your range might go. In most cases, your range should span between either or a nearby Fibonacci line.
Once you've discovered your range "sweet spot" and a good starting point, "box out" a projected grid range that has logical support, resistance and fib parameters with a span (bottom to top) that does not spread your capital too thin nor expose you to too excessive risk.
GRID YOUR RANGE
In Tradingview, you can easy create a range box using the "Date and Price Range Drawing Tool" or the "Rectangle Drawing Tool." If you want to create actual grids in your range box, you can use the "Gann Box Drawing Tool" and play around with the settings if you are hard core. At the end of the day, this is only to give you a rough idea anyways. Your actual grid range area is automatically create in your Crypto Grid Trading Bot within minutes after setting up a few parameters (simple, simple). So don't over do the time invested in drawing on your TV chart, keep it quick and simple. Find your range, put the parameters in your Bot and start making money!
THE GRID RANGE FINDER INDICATOR is ideal for traders pursuing this type GRID TRADING strategy. Yes, it's true that the trading process itself is typically automated, however the first and most important step for you, is to find a sideways, consolidating, ranging or slowly upward trending market. Review the other GRID TRADING tutorials I've published so that you can master this fascinating (and profitable) trading style. It's not that hard and it's well worth the effort.
THE GRID RANGE FINDER INDICATOR will assist you in scouting-out market opportunities where a grid opportunity may be waiting. This indicator provides lines for both long and short term price action, plus uniquely incorporates red and green COLORED trend tendencies in both the lines, as well as in "Trend Dots" at the bottom of chart.
TIPS FOR HOW TO USE THIS INDICATOR
TO HELP FIND OPTIMAL GRID TRADING OPPORTUNITIES
- Use this indicator in combination with other indicators to fully maximize your results.
- First zoom out and determine the overall structure and phase the market is in (long term).
- Remember, GRIDS perform best in sideways or slow upward ranging trends. Look for this.
THERE ARE NUMEROUS WAYS TO USE THIS INDICATOR
BELOW IS ONE WAY, TO GET YOU STARTED:
The STEP NUMBERS below are illustrated on the charts above.
- 1. Watch for a major support point.
- 2. Followed by a higher minor support point.
- 3. Start grid during GREEN trend indication (as seen on indicator trend dots or trend support line)
- • If using Heikin Ashi candles (recommended) start grid on a GREEN candle
- 4. Map out your grid range of 4% to 8% using lines and/or Auto-Fibonacci lines on chart.
This is not a "SIGNAL" type indicator, it is a valuable tool (or aid) designed to assist you in conjunction with other indicators and market knowledge. Some grid traders use ONLY this one indicator, but you should evaluate the others I've created which may help you refine your grid start parameters and opportunities. For additional help there are details below.
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Master Crypto Grid Trader
Please Explore My Other Indicators, Scripts, Grids and Educational Ideas.
@DanHollings on Tradingview.