Trading strategies for each scenario of BTCUSD
Updated
Hi, this is NEXGEN Investment.
The cryptocurrency market has been steadily moving sideways since September, giving the people who are expecting significant fluctuations a chilling time.
I know that there is a lot of interest in the direction of the bitcoin price that runs from this stuffy crossbar to the end.
This idea is about strategies for how to respond in any scenario rather than direction.
Let's start with the analysis of the Bitcoin chart.
Weekly chart analysis
The first week of October has been completed.
The completed weekly candlestick is a DOJI.
In the case of low fluctuation range, short-tailed sticks come out upwards and downwards, making the directional analogy more difficult.
We can see that the trading volume is steadily declining.
The second last week of September candlesticks was a bearish hanging man, which impose a possibility of a trend transition that leads to the expected price decline of last week of September candlesticks.
As the symmetric triangular convergence is converging with the high and low points converging, the tension is getting stronger as it gets closer to the end.
Daily trend analysis
The chart is a close-up of the asymmetric converging triangle.
The current situation is near the resistance line / downward trend line.
The indicators showing bottom are RSI, MACD and ADX and DI.
All indicators are showing symmetric triangular convergence. In particular, ADX and DI show that DI + and DI - widths converge and the ADX level is steadily decreasing.
This shows the ups and downs are weakening and the strength of the trend is weakening as well.
Fluctuations are decreasing, and trading volumes are declining.
The overall market capitalization and bitcoin dominance are also in BOX for a few days.
The current point of observation is whether this line can be deviated from the upper line or whether it will come down with resistance.
If it comes down afterward, will it be supported by the support line / upward trend line, or will it fall off?
There are many aspects to any direction.
There is a lack of grounds for convincing to rise. Therefore, please respond according to the situation according to the trading strategy.
Scenarios and Trading Strategies
1. When the price comes down to support line.
Aggressive trading strategy: A trading strategy aimed at earning a return on short-term rebound from support line by making an aggressive bid near the support line. If the price drop below the SL, response quickly escape, reduce the damage to the additional drop.
Conservative trading strategy: After touching the support line, confirm the rebound and aim for the next resistance line. We will take support line as SL.
Please note that the support line for No. 1 is $ 6320 ~ $ 6300.
The SL of aggressive trading strategies should be set at $ 6250.
2. When the support line is not checked, and it is moving sideways.
It is better to enter slowly.
In this case, since the battle between buying and selling is fierce, there is a danger that the strategy of handing over easily which direction will win.
3. If the price goes up with the current upward trend.
It is advisable to check the 4 hour chart of the nearest time frame and check if there is an upward departure to 100 EMA.
In this case, because it is necessary to keep in mind that resistance is a significant weight, it is considered efficient to make a profit with a short frame.
Resistance line update: $ 6650 ~ $ 6600. Please note that the resistance line decreases with time.
4. When approaching resistance line after progress.
If you are in the process of buying and selling:
A conservative trading strategy is to sell it with checking resistance line and buy again after its breaks upward.
An aggressive trading strategy is taking risks and betting on rising escapes.
There is also a trading strategy that reduces risk by betting on small or fractional quantities after partial bets on the middle of this bidding.
Since the resistance line of Scenario 4 decreases with time, proceed with checking the movement of time and resistance line.
If you don't have any position, and bitcoin is in an uptrend, you can also follow a conservative, and aggressive trading strategy regards on resistance line.
A conservative trading strategy in which you enter after confirming that you have deviated from the resistance line and you take the resistance line by yourself.
An aggressive trading strategy that shortens the line of SL when it comes down to resistance as the buyout for a breakout before leaving the resistance line.
summary:
1. In-line / in-box progress.
2. Symmetric triangular convergence.
3. Indicators are converging as well.
4. Response by scenario-specific trading strategy.}
Thank you for reading.
The cryptocurrency market has been steadily moving sideways since September, giving the people who are expecting significant fluctuations a chilling time.
I know that there is a lot of interest in the direction of the bitcoin price that runs from this stuffy crossbar to the end.
This idea is about strategies for how to respond in any scenario rather than direction.
Let's start with the analysis of the Bitcoin chart.
Weekly chart analysis
The first week of October has been completed.
The completed weekly candlestick is a DOJI.
In the case of low fluctuation range, short-tailed sticks come out upwards and downwards, making the directional analogy more difficult.
We can see that the trading volume is steadily declining.
The second last week of September candlesticks was a bearish hanging man, which impose a possibility of a trend transition that leads to the expected price decline of last week of September candlesticks.
As the symmetric triangular convergence is converging with the high and low points converging, the tension is getting stronger as it gets closer to the end.
Daily trend analysis
The chart is a close-up of the asymmetric converging triangle.
The current situation is near the resistance line / downward trend line.
The indicators showing bottom are RSI, MACD and ADX and DI.
All indicators are showing symmetric triangular convergence. In particular, ADX and DI show that DI + and DI - widths converge and the ADX level is steadily decreasing.
This shows the ups and downs are weakening and the strength of the trend is weakening as well.
Fluctuations are decreasing, and trading volumes are declining.
The overall market capitalization and bitcoin dominance are also in BOX for a few days.
The current point of observation is whether this line can be deviated from the upper line or whether it will come down with resistance.
If it comes down afterward, will it be supported by the support line / upward trend line, or will it fall off?
There are many aspects to any direction.
There is a lack of grounds for convincing to rise. Therefore, please respond according to the situation according to the trading strategy.
Scenarios and Trading Strategies
1. When the price comes down to support line.
Aggressive trading strategy: A trading strategy aimed at earning a return on short-term rebound from support line by making an aggressive bid near the support line. If the price drop below the SL, response quickly escape, reduce the damage to the additional drop.
Conservative trading strategy: After touching the support line, confirm the rebound and aim for the next resistance line. We will take support line as SL.
Please note that the support line for No. 1 is $ 6320 ~ $ 6300.
The SL of aggressive trading strategies should be set at $ 6250.
2. When the support line is not checked, and it is moving sideways.
It is better to enter slowly.
In this case, since the battle between buying and selling is fierce, there is a danger that the strategy of handing over easily which direction will win.
3. If the price goes up with the current upward trend.
It is advisable to check the 4 hour chart of the nearest time frame and check if there is an upward departure to 100 EMA.
In this case, because it is necessary to keep in mind that resistance is a significant weight, it is considered efficient to make a profit with a short frame.
Resistance line update: $ 6650 ~ $ 6600. Please note that the resistance line decreases with time.
4. When approaching resistance line after progress.
If you are in the process of buying and selling:
A conservative trading strategy is to sell it with checking resistance line and buy again after its breaks upward.
An aggressive trading strategy is taking risks and betting on rising escapes.
There is also a trading strategy that reduces risk by betting on small or fractional quantities after partial bets on the middle of this bidding.
Since the resistance line of Scenario 4 decreases with time, proceed with checking the movement of time and resistance line.
If you don't have any position, and bitcoin is in an uptrend, you can also follow a conservative, and aggressive trading strategy regards on resistance line.
A conservative trading strategy in which you enter after confirming that you have deviated from the resistance line and you take the resistance line by yourself.
An aggressive trading strategy that shortens the line of SL when it comes down to resistance as the buyout for a breakout before leaving the resistance line.
summary:
1. In-line / in-box progress.
2. Symmetric triangular convergence.
3. Indicators are converging as well.
4. Response by scenario-specific trading strategy.}
Thank you for reading.
Note
Current coinmarketcap information.
Market Cap: $ 220,551,020,825
24h Vol: $ 11,947,915,750
BTC Dominance: 52.1%
The overall market and trading volumes have increased. Bitcoin dominance fell 0.5%.
If you look at this, it just looks like shaking or giving a chance to trade.
In the analysis article, the scenarios 3 and 4 have come to the right place.
The resistance line, $ 6650 ~ $ 6660, is being replaced by a support line.
It is too early to say it is rising to the moon!! but it is definitely good sign.
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