Rate of Change indicator or simply put it the ROC indicator is another momentum indicator and as the name suggests it measures the rate of a crypto’s change in price and predicts future price movements.
Our RSI is applied over the ROC. So the RSI line is derived from ROC not the price.
Step 1 - Step #1: Wait until the RSI has a value of less than 30
At this stage, we need to use the RSI readings from the daily chart. Just wait until the RSI has a value of less than 30. You’ll have to wait for the daily close to get the RSI reading.
Obviously, this means that you’ll always buy XEM the next day.
Once you spot an RSI reading less than 30 we switch to a lower time frame which brings us to the second rule of the Nem (XEM) cryptocurrency strategy.
Step #2: Switch to the 1-hour chart and wait again until the RSI shows a reading of less than 30.
The second rule that needs to be satisfied before pulling our trigger is to wait again for the RSI indicator to show a reading of less than 30 but this time on the 1-hour time frame.
Remember, this should be the next day after the RSI posted less than 30 readings on the daily chart.
Step #3: How to buy XEM: Buy at the opening of the next candle after the RSI went below 30 levels.
The original momentum Pinball pattern uses a different entry method. We have done some backtesting and found that we can achieve superior returns if we follow a different entry strategy.
How to buy XEM with our cryptocurrency trading strategy is much more eloquent because it uses the concept of multiple time frame analysis.
Buy at the opening of the next candle after the RSI posted a reading of less than 30.
Step #4: Place your protective Stop Loss below the previous day low
After the buy EOS order is triggered, we need to have a strategy to protect our bottom line.
The best Nem XEM price to hide your protective stop loss is below the previous day low. The Nem XEM price should not come to this point.
Step #5: Take profit should be 2 or 3 times larger than your stop loss
Again, our exit strategy is slightly different than the original momentum Pinball pattern.
Be sure to close your Nem trade once the take profit is two or three times larger than your stop loss.
Alternatively, you can use the initial exit strategy which requires taking profits when we break above the previous day high. Don’t limit yourself to either of these two strategies, but instead make the best out of them and use the one that suits the most the current trading environment.
Note** the above was an example of a BUY trade using our Nem (XEM) cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse.
PM me if you want to read the complete strategy.
Our RSI is applied over the ROC. So the RSI line is derived from ROC not the price.
Step 1 - Step #1: Wait until the RSI has a value of less than 30
At this stage, we need to use the RSI readings from the daily chart. Just wait until the RSI has a value of less than 30. You’ll have to wait for the daily close to get the RSI reading.
Obviously, this means that you’ll always buy XEM the next day.
Once you spot an RSI reading less than 30 we switch to a lower time frame which brings us to the second rule of the Nem (XEM) cryptocurrency strategy.
Step #2: Switch to the 1-hour chart and wait again until the RSI shows a reading of less than 30.
The second rule that needs to be satisfied before pulling our trigger is to wait again for the RSI indicator to show a reading of less than 30 but this time on the 1-hour time frame.
Remember, this should be the next day after the RSI posted less than 30 readings on the daily chart.
Step #3: How to buy XEM: Buy at the opening of the next candle after the RSI went below 30 levels.
The original momentum Pinball pattern uses a different entry method. We have done some backtesting and found that we can achieve superior returns if we follow a different entry strategy.
How to buy XEM with our cryptocurrency trading strategy is much more eloquent because it uses the concept of multiple time frame analysis.
Buy at the opening of the next candle after the RSI posted a reading of less than 30.
Step #4: Place your protective Stop Loss below the previous day low
After the buy EOS order is triggered, we need to have a strategy to protect our bottom line.
The best Nem XEM price to hide your protective stop loss is below the previous day low. The Nem XEM price should not come to this point.
Step #5: Take profit should be 2 or 3 times larger than your stop loss
Again, our exit strategy is slightly different than the original momentum Pinball pattern.
Be sure to close your Nem trade once the take profit is two or three times larger than your stop loss.
Alternatively, you can use the initial exit strategy which requires taking profits when we break above the previous day high. Don’t limit yourself to either of these two strategies, but instead make the best out of them and use the one that suits the most the current trading environment.
Note** the above was an example of a BUY trade using our Nem (XEM) cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse.
PM me if you want to read the complete strategy.
Comment:
1 H rsi below 30 - buy next candle - in trade
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