Levels and support in Crypto (Part 1)Hey folks! My friends ask me how to work with support and resistance zones. And I decided to write a few articles about it. It is the first part of the post about that theme.
One of the most important knowledge I use is identifying support and resistance levels. These zones on a chart give me a clear edge in developing a winning trading strategy.
Crypto Resistance Level Meaning:
Resistance levels indicate prices where selling pressure may stall an uptrend temporarily. Traders watch these levels for signs of breaking through, which could lead to further price increases.
Identifying Resistance Level:
To spot resistance levels, I analyze the price chart and connect previous price peaks with horizontal lines. Breaking through resistance often leads to a new support level forming.
A support level is a price that traders believe a cryptocurrency is unlikely to drop below. It's backed by strong demand and buying activity as traders see the asset as undervalued. This creates a floor, making it an attractive buying opportunity or a safe zone for holding.
Finding Support Level:
The easiest support levels to spot are those that have held in the past. Past data gives insights into potential future support. I also zoom out to look at the bigger picture, considering overall trends and historical price action.
Support and Resistance Trend Lines:
These are horizontal price levels drawn at previous market peaks and troughs. They help identify potential support and resistance levels for a cryptocurrency. I usually trade it in scalping.
How to draw support and demand levels? Here is the example
To sketch support and resistance zones, simply draw a horizontal line through each meaningful trough (support) or peak (resistance).
Draw these lines through the bar lows (for support) or bar highs (for resistance) or the closing price, as most traders eye the close. Stretch these lines into the past to see if earlier price drops halted at the same level.
What methods can you use for the day trading with levels?
I apply breakouts in a low-volume market and breakouts during high volatility. I also trade along inclined trend lines in line with the trend.
Want to learn more about working with levels? Write in the post below, and I'll tell you more about it! As always, I'll appreciate your subscription and likes.
Cryptobots
How to search gems in the daytrading!Hello everyone! My friends have asked me to compile a list of actions we should take during a bull market, and that's what this post is about. Let's get started!
First Criteria:
First and foremost , I try to pick solid coins with a market cap of over 1M. I use the Binance Exchange screener. It enables me to track coin volatility over 24 hours.
Next, I keep an eagle eye out for volatility and percentage growth in a day. A rise of more than 8% in percent in the day is optimal.
The next step is identifying the day's level and breakout level.
The day's level refers to the 12-hour candle level, and the breakout level is the nearest support/resistance level that had breached.
These levels will serve as clusters to make further decisions about the coin.
If I spot volatility, I set up the DCA bot to work with it. In the trend situations, I stick with DCA settings. I turn to the GRID bot in the flat market.
For example. a short explanation of current situation of the SET:BCH
News Analysis:
Evaluate a coin's potential based on news fundamentals through Twitter and Coinmarketcal. If you plan to hold crypto for more than 24 hours, you need to do research.
What news do I find interesting? New exchange listings, chain updates, forks, airdrops, and whether there's any significant news that might trigger a buying spree.
Backtest :It is a feature that I use with Bitgsap, allowing me to test how the coin could have generated profit with the bot's settings. It's not a guaranteed future result, but it helps me estimate potential profitability while considering past trends.
Hunting for hidden gems in the crypto world is a fun but risky adventure. Always conduct thorough research and be prepared for the ups and downs of the crypto market!
In-Depth Research:
One of the last types of research I perform is blockchain analysis, examining the product itself and the community.
Here, I analyze various data points, including the project founders and investment funds which have invested early in the platforms. The strength of the project's community and how often they appear in mainstream crypto media.
If I can fetch data on the number of large wallets holding the coin from the blockchain, I do that too to understand the strength of the coin's holders.
For example you can use DefiLama, moralismoney, etherscan and etc
That’s it. How do you analyze crypto in the market? What is your strategy at this period? Write in the commentary below. I will appreciate your subscription. See you, folks!
DCA bot and my experience with it!Hey there, fellow crypto enthusiasts! Welcome to my blog, where we break down the complex trading world into bite-sized knowledge nuggets.
Today we're diving headfirst into the exciting strategy of Dollar Cost Averaging (DCA) and how it works with trading bots.
Dollar Cost Averaging Demystified
Alright, folks, let me break it down for ya. Dollar Cost Averaging (DCA) is an investment strategy that's all about taking it slow and steady. Instead of going all-in at once, DCA has you regularly buying a particular asset, like bitcoin, in small chunks over time. It's like sipping your favorite beverage gradually instead of chugging it down in one go. We want to savor those gains, people!
Smooth Sailing through Market Turbulence
Here's the kicker, my friends. DCA helps you ride out the crazy rollercoaster of price fluctuations. Picture this: Bitcoin's price takes a nosedive. Ouch, right? But fear not! With DCA, you're buying during the dip, baby! So when the price inevitably bounces back up, you'll sit pretty and reap the rewards. On the flip side, if the price skyrockets, well, you might have some losses when it takes a breather. But fear not again! Since you're investing small amounts regularly, you're not putting all your hard-earned cash at risk. It's like having a financial safety net during those market downswings. Sweet, isn't it?
What figures and patterns do I recommend using?
Firstly as a continuation pattern, I would like to search for a triangle, flags, and wedge.
Also, you can catch the price squeeze and the volume spike to catch the volatility on it.
For example, the last setup of that pattern was on $Matic.
How I automated trading with the DCA strategy
I try to be smart with my time, and after figuring out how DCA works, I regularly practice automation using this strategy.
Here are my tips and personal configurations: so, if you want to trade with small leverage, 3x-6x will be enough for you. The maximum risk is 10x.
Try to make simple trades, and think about trends at the beginning of your charts. And then you will start to win.
Here are the results of trading with the DCA Futures bot
As you can see, it's possible to make money with bots. However, it requires understanding of how they work and knowledge of coin analysis. The case is that you free up your time for other things.
Also, note that my advice is not a call to action. Everyone is responsible for their own trading decisions.
Questions:
New trading strategies.
Do I analyze myself with VSA indicators, like BOS? ( Break out structure)
I often use wedge and triangle patterns with significant consolidations in my work. Once I identify these patterns, I wait for a push of the price increase resulting from the liquidity and then activate my trading bots. This way, I actively participate in the market and observe how my strategies perform.
Are you interested in learning more about the settings you can use with the DCA BOT? I'll be happy to share that information with you next time.
Hang tight for more mind-blowing posts where I uncover various investment strategies and financial wizardry to help you conquer your financial dreams.
I wish you successful trades!
