How To Day Trade Bitcoin While Still Holding Long
Bitcoin continues to amaze people around the world, and it will most likely continue to see upward gains for some time. We can use this to our advantage,
while taking advantage of some of the wild swings that it does on a weekly basis. First the strategy, then the indicators.
Strategy: In order to hold our Bitcoin but still day trade it, we need to sell when it reaches an unsustainable peak and buy back the exact same amount of Bitcoin when it swings lower. The money left over is our reward for reading the market correctly.
Indicators: For this strategy to work, we need to know when Bitcoin has hit an unsustainable high, and is about to drop, and another indicator to know when to buy back in with the same amount at the low.
With a little testing, I found the Supertrend Buy or Sell Signal for when to sell (Black Arrow), and CM Sling Shot System (Green Arrow) for when to buy again were good indicators for this task. Additionally, sometimes Bitcoin has very wild swings, so adding the CM_Williams_Vix_Fix Finds Market Bottoms is a second way to know it hits the very bottom, or at least close to it.
Of course, play with these indicators until you find it to your own liking and trust.
Additionally, you could buy back more Bitcoin with the money you gained, and look forward to even better returns.
while taking advantage of some of the wild swings that it does on a weekly basis. First the strategy, then the indicators.
Strategy: In order to hold our Bitcoin but still day trade it, we need to sell when it reaches an unsustainable peak and buy back the exact same amount of Bitcoin when it swings lower. The money left over is our reward for reading the market correctly.
Indicators: For this strategy to work, we need to know when Bitcoin has hit an unsustainable high, and is about to drop, and another indicator to know when to buy back in with the same amount at the low.
With a little testing, I found the Supertrend Buy or Sell Signal for when to sell (Black Arrow), and CM Sling Shot System (Green Arrow) for when to buy again were good indicators for this task. Additionally, sometimes Bitcoin has very wild swings, so adding the CM_Williams_Vix_Fix Finds Market Bottoms is a second way to know it hits the very bottom, or at least close to it.
Of course, play with these indicators until you find it to your own liking and trust.
Additionally, you could buy back more Bitcoin with the money you gained, and look forward to even better returns.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.