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Swing Trading Bitcoin With The Aroon and ADXSwing Trading Bitcoin With The Aroon and ADX The market has continued its ranging period and is now closing in on the support level around $8,500-$9,000. Although the market has been ranging over the past two months, you can still make a profit by trading with the Aroon and ADX! Let’s start by taking a closer look at the Aroon indicator! Aroon Aroon is considered to be both a momentum and a trend-following indicator. Aroon is represented by two lines, Aroon up (the orange line) and Aroon down (the blue line), and fluctuates between 0% and 100%. Aroon measures the frequency of new highs during uptrends. If the price is continuously rising and making new highs, Aroon up will be 100 and Aroon down 0 and vice versa. However, when the price is not making new highs, it means that the uptrend is fading out, and we can have a correction or trend reversal. The indicator generates buy and sell signals through crossovers. When “Aroon up” crosses “Aroon down” upwards, it means that a positive trend has initiated, and it signals a buy (marked with a green circle on our graph). On the other hand, when “Aroon down” crosses “Aroon up” upwards, it will send a sell signal. We have only used the buy signals from the indicator in this example. The downside of the Aroon is that it may give out signals during a range that may not be as profitable as during a trend. Therefore we have added the ADX to act as a filter! ADX The ADX or average directional index is a volatility indicator that measures the strength of the trend. The higher the value of the ADX, the stronger the trend. We are going to filter out signals given when there is no clear direction in the market. Therefore, all signals provided by the Aroon must coincide with the ADX having a value greater than 25. To filter out signals even further, you may also want to add a MESA or Parabolic SAR on the daily chart to make sure you are only trading when the broader trend is in your favor. To exit positions opened by this strategy, we have used the following settings: Trailing stop loss percentage 2%, arming trailing stop loss 4% Stop-loss 3% You can add these settings to your hopper by going into the config/baseconfig/sell settings.
Long
by cryptohopper
1
Trading Bitcoin With The Absolute Price OscillatorCryptohopper Newsletter Market Analysis Another week of trading means another week of ranging in the Crypto market. Bitcoin is still unable to break the resistance at $10,500, while still holding on to the support. Usually, a long period of stability is followed by a period of volatility. Therefore it can be expected for BTC to make a significant move in the near future. The “Absolute Price Oscillator” (APO) is an indicator that is very useful in swing trading and determining these significant moves. We will first start by determining what the Absolute Price Oscillator is! Absolute Price Oscillator The APO displays the difference between two EMAs of a coin’s price and is displayed as an absolute value. The indicator is thus the difference between the fast exponential moving average (in our case 10) and the slow exponential moving average (in our case, 20). The indicator provides a buy signal when the line is above 0 and sell signal when it is below 0. When it is above 0, it means that the fast EMA is above the slow one, and when it is below 0, it means that the slow EMA is above the fast one. When and how is it best used? That’s what we will explore in the next section. How to use the APO effectively From our observations, the APO tends to behave better on the larger timeframes than on the smaller ones. On the shorter timeframes, the indicator tends to give out more “fake” signals than on the longer ones. Based on the last bull-run observations, the indicator would work on the 4-hours timeframe with other sell settings such as take profit, stop loss, and trailing stop loss. If used with its sell signals on the 4h timeframe, it may result in lower profits as its sell signals are generally too slow to cover profits adequately. However, on the 1-day time frame, the indicator has proven to be able to work well with its sell signal. This success can be attributed to the price having a more clear direction than on the smaller timeframes.
Long
by cryptohopper
Swing Trading Bitcoin Like A ProCryptohopper Newsletter Market Analysis After a 20% crash a week ago, Bitcoin is again testing the resistance around $10,000. Should this resistance break, $11,000 will probably be the next price target in this bull run. Even if the price does not break the resistance at $10,000, it still provides us with many opportunities for some very profitable swing trades, which we will cover in this newsletter! Momentum + Trend Professional traders will, in most cases, look at more than one indicator. They look at multiple indicators because each indicator, no matter how accurate, will always have drawbacks and will need to be complemented by at least another one. In our case, the weakness of Williams %R is that it will signal a buy continuously while the price is crashing, and you may enter a position too early. The drawback of the Tripple Exponential Moving Average (TEMA) crossover is that it may provide too many signals, especially in a ranging market. It will sometimes also signal a buy when the price is overbought. However, when combining the two indicators, we can buy when the price is oversold and when the trend is back in our favor. Similarly, we can sell when the price is overbought, and the trend is no longer in our favor. Generally, these indicators are among the first to react in their respective category. Williams Percent %R is a fast oscillator that detects when the momentum has shifted faster than the RSI or Stochastics. The TEMA is among the quickest moving averages, as it gives three times more weight to the most recent data than the regular EMA. Therefore it will also be among the first to react. Together these indicators can be used to great effect when taking long positions in a bullish market and shorts in a bearish one. They will provide signals often even on the higher time frames.
COINBASE:BTCUSDLong
by cryptohopper
5
What is Bitcoin's next target?Cryptohopper Newsletter Market Analysis The most significant event in the Crypto space has occurred this week, the Bitcoin Halving! Since yesterday the supply of newly mined Bitcoin has been reduced in half, consisting of 900 BTC per day, as opposed to the previous 1,800. Many traders are expecting Bitcoin to surge in value significantly over the next one to two years. With that in mind, let’s analyze the asset’s next move! Bitcoin can be considered to have been in an uptrend for about two months ever since it hit this year’s low at $3,800 on the 13th of March. The price currently sits at an increase of 135% since then. We have created an uptrending channel based on the highs and lows of BTC over this increase. If BTC were to continue respecting this channel, then we can consider it to be on the oversold side and as such at a good purchasing price. If Bitcoin were to continue this uptrend, the next higher high it could hit is $10,500 . This level is significant for three main reasons: it is the highest price BTC achieved this year, it is the resistance level of the previous bull run which ended in February, and it also acted as resistance during the fast 1-day pump of around 40% on the 25th of October, 2019. If the current trend were to continue its pace, this level should be hit in about three days. However, if this trend is broken, then we could see the price retest the support at around $7,500. Considering that the last halving in 2016 started with a pull-back, we shouldn’t rule out the possibility of a retracement before bull-run. Join us at Cryptohopper to take advantage of these swings by automating your trading!
Long
by cryptohopper
1
Using Momentum & Trend Indicators To Trade ETHCryptohopper Newsletter Ethereum just like the entire crypto market has been very bullish over the past week, gaining over 35% . When the Crypto Market is bullish and has a clear direction, trend following indicators and momentum indicators become very useful and can offer very profitable trades. We will now jump into how you can trade ETH and the Crypto Market under these conditions! Trend following + Momentum As we have mentioned in our previous weekly analysis, the Parabolic SAR is a trend following indicator that is very effective when the market has a clear direction , as it is the case right now. In order to validate the Parabolic SAR, we can use the MACD which is a momentum oscillator to verify that the momentum is in our favor as well. When both momentum and trend indicators are signaling a buy, there is a good chance that it will be an advantageous moment to enter the market. The entry point plays an important part and is crucial for a successful trading system. However, it only tells half the story; the other half is the exit point, which we will analyze now! Technical Analysis Trailing Stop Loss The Parabolic SAR can not only act as an excellent entry point for a trade but it can also act as an excellent exit point . This indicator is able to react quickly to changes in trend, as such it will usually also be fast enough to close your trades at the right moment. The Paracolic SAR can thus be an excellent trailing stop loss that follows the trend until its reversal, therefore keeping you in the trade for a long time and maximizing your returns.
COINBASE:ETHUSDLong
by cryptohopper
1
Trend + Volatility In The Crypto MarketCryptohopper Newsletter Bitcoin has been consolidating over the past week as its bullish uptrend has somewhat stalled. During a consolidation phase, it is harder to make a profit as moves are less volatile and are usually short-lived. This is even worse if you use a trend-following indicator; by the time your trend following indicator signals a buy, the market has already turned against you . As such, it is important to use a volatility indicator in order to filter out trades during a consolidation phase. This week we will thus look at how you could have used the Parabolic Sar (a trend-following indicator) and the Average Directional Movement (a volatility indicator) together in order to trade BTC. Without further due let’s get into it! Parabolic SAR The Parabolic SAR is displayed by a series of dots underlying the market in an uptrend and overlaying it in a downtrend. This indicator is particularly useful when the market is trending as it will signal earlier than most other indicators and will continue following the price higher just like a trailing stop loss. However, when the market is ranging, the SAR will give out a lot of signals in a short period of time which are not profitable due to the low volatility. As such, a volatility indicator is needed in order to filter out these signals. One such volatility indicator is the Average Directional Movement or ADX for short. Average Directional Movement (ADX) The ADX as previously mentioned is an indicator that measures the volatility of a market. If the volatility is low then the ADX will stay below 20. When the indicator is below 20 it suggests that the market is ranging and we should not take a trade. As such we should set the ADX to filter out signals and only trade when it is above 20 . Our final strategy will thus be, to buy when the Parabolic SAR is showing an uptrend, and the ADX is showing increased volatility which confirms that we are actually in an uptrend. Both of these indicators are available at Cryptohopper, so join us today and take full advantage of automating them!
Long
by cryptohopper
1
RSI vs. William's % Which One To Use, And When?Cryptohopper Newsletter Bitcoin’s rebound seems to have slowed somewhat, with a correction of more than 10%. However, the price now appears to be pushing higher again and is close to this month’s high. Depending on the kind of momentum indicator you have selected, you might or might not have taken advantage of this opportunity. In this week of technical analysis, we will look at two different momentum indicators: The RSI and Williams % and see which ones are the best to use and when. Without further due, let’s start by diving into the RSI! RSI The Relative Strength Index is one of the most used momentum indicators in trading. The RSI is a momentum oscillator that fluctuates between oversold and overbought . When RSI is below 30, it is generally considered to be oversold and at the right time to buy, and when it is above 70, it is usually regarded as overbought and a good time to sell. The RSI is significantly slower than William’s %, and as such, it can be used effectively on larger time frames to predict recovery from more significant market crashes. In a bullish period, though, the RSI might give minimal signals only. Let's now look at William’s % William’s % William’s % is another momentum oscillator that is frequently used by traders. Just like the RSI, this indicator oscillates between oversold and overbought zones. When this indicator is below -80, it is said to be oversold, and when it is above -20, it is said to be overbought. William’s % is faster and gets into oversold or overbought zones quicker and a lot more frequently than the RSI. As such, Williams % can be used very efficiently in a bullish market as it will quickly and efficiently mark each pullback the uptrend has. However, the indicator may provide too many signals in a bearish market, thus leading to significant losses. RSI + Williams % In conclusion, the RSI is better used on the more extended time frames in order to identify the reversal of significant crashes, while William’s % works better in an uptrend. What some traders do, and it should generally be avoided, is using the two indicators together to provide a buy signal. For example, using both the RSI and Williams % and then buying when they are both oversold. However, this can be very dangerous, as Williams % will show oversold each and every time the RSI does too, and as such, you are really only relying on a single indicator instead of two. With that out of the way, it is possible to use both indicators together on different time frames successfully, but we will cover this another time!
Long
by cryptohopper
2
Bitcoin Halving History And PredictionsCryptohopper Newsletter BTC has continued its rebound, and it is now 90% up from its lows this year at 3,800$. With the halving about a month away, many BTC enthusiasts and investors expect the price of the asset to continue its uptrend. Today we will examine the past two halvings and give out our predictions for how the third halving will play out based on the past data. Without further due, let’s take a look at the previous halvings and at our predictions for the third! First Halving The first Bitcoin halving occurred on November 25th, 2012. The price of Bitcoin before the halving was only 12$ . After the halving, the price increased by more than 9,000% to 1,160$ in about 1 year. This was followed by an 86% market crash over the course of 420 days. After a long period of consolidation of about 300 days, the price started to increase again before the next halving. Let's now take a look and see how similar or different the price behaved during the second halving. Second Halving The second Bitcoin halving occurred on July 9th, 2016. The price of Bitcoin before the halving was only 650$ (half of the previous high) . After the halving, the price increased by almost 3,000% (only a third compared to the other one) to 19,500$ in about a year and a half. This was followed by an 84% market crash over 364 days. After a shorter period of consolidation of just over 100 days, the price started to increase again before the next halving. Sounds similar? Well, that’s because it is. The price followed an almost exact pattern from the first halving. We will now move on to our predictions of the third halving based on the data gathered from the previous two. Third Halving The third halving is set to occur on May the 13th. If the third halving will follow the other two, then the price of Bitcoin should be around 9,000$-10,000$ around the time of the second halving (half of the last high). After the second halving, the price should increase by about 1,000% if it is to follow the tradition of increasing 3 times less than the previous halving. If all of the previous statements turn out to be true, then we could expect BTC to reach around 90,000$-100,000$ after the third halving. The price should then follow a correction of around 80% down to 20,000$ . In short: We expect the price to be around 9,000$-10,000$ around May 13th. We expect BTC to reach around 90,000$-100,000$ at its next peak. We expect the price to follow a correction down to 20,000$. These are of course our expectations based on how the price behaved over the previous 2 halvings. The price won’t necessarily occur following the exact steps we displayed here. As with technical analysis in general: the price tends to follow historical patterns but it doesn’t have to. If the price will behave similarly to the first two halvings, then trend-following indicators will be very useful in identifying the trend and riding to the moon. Join us on Cryptohopper today and take advantage of the next halving by automating your trading.
BITSTAMP:BTCUSDLong
by cryptohopper
4
The Different Ways To Trade The StochasticsCryptohopper Newsletter The market has been very volatile over the past month with Bitcoin crashing 65% to 3,800$ . The price has since made an astonishing 80% recovery in one week from March 13th until the 20th. Following the recovery to almost 7,000$; the price has continued to range between 6,900$ and 5,600$. During the crash, many traders have attempted to buy the dip, just to see it dip even lower. Today we will explore how you could mitigate this risk by using stochastics with region crossover. Without further due, let’s get into how you could have traded this past month by using the normal stochastics and the stochastics with region crossovers. Different stochastic strategies There are many different ways to use stochastics. Today we will explore 2 of them, along with their advantages and disadvantages: Stochastics oversold: This strategy involves getting into a position when the stochastics drop below 20. This strategy works better when the broader trend is in your favor, as it is expected for the price drops to be shortlived and to continue moving higher. The advantage of this is that you will be getting in at the lower prices in an uptrend. This strategy can be very dangerous during a market crash though, or when the price is bearish in general as you will be getting in the trade, while the price will continue to drop further . This can be seen very well in the first three trades where the price continued to drop lower even though the stochastics were already oversold. Stochastics with region crossover: This strategy involves getting into a position once the value of the asset in question rises again above 20. This strategy can work very well in a downtrend but also in an uptrend depending on the severity of the pullback. In a downtrend, this strategy increases the probability that you are entering the trade only when the momentum is back in your favor. This can be seen by the first three entries in the graph where the buy point was 7%, 8%, and 16% lower than with the oversold strategy In an uptrend, if the pullback is very large then this strategy will again ensure that the price will not continue [/b its descent once you enter. However, if the pullbacks are not very severe, then you will enter at a worse price point. Overall the stochastics with region crossovers is more conservative and can lead to higher profits when the markets are volatile, as it is the case right now. Join us at Cryptohopper, where you can automate both of these strategies along with many others!
Long
by cryptohopper
1
How To Trade Moving Averages In a Volatile MarketCryptohopper Newsletter Chart Bitcoincash has made a swift recovery of over 70% from its lows this year on the 13th of March. The markets have been very volatile over the past month, and Bitcoincash is no exception. Over the past days however, the price has entered in a consolidation phase between $180 and $225. Trend following indicators tend to work very well in volatile markets. Moving averages are a good example of a trend following indicator. Let’s dive into how you could have used moving averages to trade this volatile market! Different Types of Moving Averages As you probably know there are many types of moving averages, but what are the best ones, and how to use them? This is what we will explore in this week’s technical analysis. Generally the slower and longer moving averages are used in order to catch the bigger moves in the markets. The slower and longer a moving average is, the more reliable its signal is considered. The disadvantage however is that you may enter positions too late, or that you exit positions too late as well giving back most of your profits. The slowest moving average usually used by traders is the SMA (simple moving average) . This moving average gives the same weight to all of the past closing prices. Faster and shorter moving averages are then used in order to catch every movement of the price. The advantage of the faster and shorter moving averages is that you will be able to capture all of the market moves early on; at least earlier than the slower moving averages. However the disadvantage to these is that they give a lot of fake signals, so a trader may enter positions on trades that never comes to fruition. The fastest-moving average that is generally used by traders is the TEMA (triple exponential moving average) . This moving average reacts faster to price movements as it gives a lot more weight to the most recent data. So, how can we create a trading system based only on moving averages, that works? This is what we will explore in the next section. Moving Average trading system As slower moving averages tend to give fewer and more reliable signals we can use one in order to time our entries in the market. This way we will limit the number of fake signals and as such our % of winning trades should increase. We can thus use the cross between the 10 EMA and the 30 EMA for this purpose. The EMA is slightly faster than the simple moving average as it gives more weight to the most recent data. We can then use the TEMA in order to time our exits in the market. A TEMA can be useful as a sell signal, as it reacts faster than the other moving averages and will thus take the profit sooner. The advantage of using a TEMA is that you will exit the trade sooner, and as such you will not be giving as much profit back. Both the EMA and the TEMA are available at Cryptohopper, along with many other different types of moving averages. Create your fully automated trading system with moving averages today, by joining us on Cryptohopper!
COINBASE:BCHUSD
by cryptohopper
Trade with the trendCryptohopper Newsletter Chart Bitcoin has retested the support at 8,500$ after having dropped more than 20% from this year’s high two weeks ago. The price is now moving higher and retesting the resistance at $9,000 Trade with the trend Bitcoin has some of the most spectacular swings out of all the assets in the world. It can rise hundreds of % in an uptrend and then fall more than 80% in a downtrend. As such it is important for traders trading on the smaller time frames to trade with these trends and not against them. Trading against the trend is one of the most common mistakes new traders make. For this week’s analysis, we will look at how we can identify a general trend and how we can trade with it. Let’s dive deeper into how you can trade the trends within the BTC/USD market! Identifying the trend First off, we must choose the timeframe in which we want to place our entries and exits; let’s take the 4h chart as an example. Then, we must look at an order of magnitude larger , Alexander Elder described an order of magnitude larger as a factor of 5 . In our example we can take the daily chart as our larger time frame. Then, we can use a trend-following indicator to identify the trend on the respective timeframe. The MESA is a good example of a trend following indicator. By using the MESA and only trending in the “green zone” we can ensure that we will always trade with the broader trend . Identifying the pull-backs A momentum indicator can work well in identifying the pull-backs on a smaller time frame. Let’s take Williams % as an example. This indicator can be used in identifying the oversold zones and timing your entries in the market . A trailing stop loss can then be used in order let your position run along with the general trend and not exit prematurely. You can find both the MESA and Williams % along with many more indicators in our strategy section; you can set them to any timeframe you desire!
BITSTAMP:BTCUSD
by cryptohopper
4
Trading the 130% increase of EthereumCryptohopper Newsletter Chart Ethereum has had an astonishing 132% growth from the beginning of 2020 to its highs on the 15th of February when it reached 290$. However, now the bears are in control of the market as the coin has already l ost a quarter of its value from this year's high . After this year’s highs have been reached, the price consolidated for a few days before selling off. However these type of corrections are natural as traders reap their rewards by taking their profits. The price is currently at the important 220$ support level which is currently holding, in the case it breaks the price probably retrace to the 190$ support. For this week’s analysis, we have selected a trend indicator to ensure that we only trade with the trend , and a momentum indicator to find the pullbacks of the uptrend . Let’s take a closer look at this strategy and its performance on the ETH/USD market! Designing your automated strategy For this week’s analysis, we have selected 2 indicators Williams% and the Mesa , which when used together provide an effective strategy that can be used on Cryptohopper. The  MESA adaptive moving average  is a  trend-following indicator. It adapts to price movements in a very unique way, based on the rate of change (ROC). Like other moving averages, traders use this indicator to spot trends and trend reversals . This is done by crossovers between a fast and a slow-moving average. The MESA will indicate a buy signal the entire time the fast moving average is above the slow one and a sell signal when the fast moving average is below the slow moving average. Now let's look at the momentum indicator, the Williams% . This indicator determines overbought and oversold zones, which oscillates between -100 and 0. The indicator compares the highest and lowest point within a number of periods. The overbought zone is between -20 and 0 and this where the sell signals are given. The oversold is between -80 and -100 and this is where the buy signals are given. Combining the two indicators will result in a strategy that provides signals only when both trend and momentum are on the same side. This will result in a strategy that will only provide buy signal during the pullbacks of an uptrend , ensuring that you always trade with the trend.
COINBASE:ETHUSD
by cryptohopper
Automating Ichimoku Cloud To Trade BitcoinCryptohopper Newsletter Chart The Bitcoin price has had an astonishing beginning of the year. Currently, it has increased over 40% but it has even reached more than 55% when the price tested $10,500. The bearish medium-term trend that Bitcoin was having after reaching $13,800 in June seems to be over with this bull run. The third Bitcoin halving can be having an influence on the price. For this week’s analyses, we have selected a brand new indicator in Cryptohopper, the Ichimoku Cloud , a trend indicator that is proving to be highly effective in long time frames. Let’s dive a bit deeper in how it can perform in the BTC/USD market! Designing your automated strategy The Ichimoku Cloud  was created by Goichi Hosada in 1969. It has components of trend and momentum indicators and is compound by five lines. It includes several moving averages of which two create the so-called cloud. The cloud is the key component of this indicator, and all the entry and exit points will depend on it. The Ichimoku Cloud has different applications. The most common one generates buys and sells when the price crosses the cloud up and downwards. When a candle breaks the cloud upwards and closes above it, the price is gaining bullish momentum and generates a buy signal. Likewise, if the price breaks the cloud downwards and closes below it, the price is likely to fall. Therefore it will close a position or open a short. As you can see in the chart, the Ichimoku Cloud has spotted very well the positive trend and all the pull-backs inside it. Start automating your trading with Cryptohopper. —CRYPTOHOPPER—
BITSTAMP:BTCUSD
by cryptohopper
Avoid ranges. Trade profitable trends.Chart The market is peaking again. Most of the altcoins have been having double-digit increases and most of them have outperformed Bitcoin , which has led to a couple of weeks of good alt trading. This week’s analysis shows the Bitcoin’s bull run during the last month. It’s possible to separate two different clear phases in the chart: a range and an uptrend. During the whole month of December, the market was ranging between $6,700 and $7,700. However, the bulls took over the market in 2020 and drove the BTC price up more than 50%. What a beginning of the year of the halving. Designing your automated strategy As we have previously said, this chart shows two clear phases, a range and a trend . Therefore, in order to trade in the current scenario, we need indicators that would also know how to differentiate between these two phases. Therefore, we have selected the ADX , which is a volatility indicator that will remain low when the price is ranging (low volatility) and increases when the price is trending (higher volatility). As we can see in the beginning of the chart (December), the ADX line (red line) remains below its threshold when the price is ranging. When this happens, the indicator signals “Unconfirmed” and won’t let other indicators ( Stochastic in this case) open a position even if they signal a buy. Nevertheless, when the ADX line is above the threshold, the indictor becomes “Confirmed”, and if the Stochastic signals a buy, the trading bot will open the position. In the chart, you can see which are the positions that will not be opened by this strategy and the positions that will be opened.
BITSTAMP:BTCUSD
by cryptohopper
2
XRP/USD - You Need To Try This New Indicator!Chart This week’s coin is XRP . In the chart, we can see Ripple’s evolution for the last two months, a period of time in which it has increased by over 50% . During the second half of December and the beginning of January, XRP had been ranging and having very low volatility. However, as of 6 of January, the demand started to appear in this market and the volatility began to peak. A very useful indicator to know how volatile a cryptocurrency is, is the ATR. At Cryptohopper, we have tweaked it to use it as a volatility filter. We have added a second line to the ATR to pinpoint the moments where the price is more volatile. As you can see in the chart, when the ATR line (orange line) is below the blue line, the price is not volatile and it is likely to be ranging. On the other hand, when the ATR line is above the blue one, the volatility of the market is increasing, which means that the price is initiating a new trade and there will be more trading opportunities. As you probably know, volatility indicators don’t signal a buy or sell , they can pinpoint when the price is more volatile, it doesn’t matter if it’s trending up or down. Then, if it doesn’t signals a buy or sell, or suggest where the price might go, how can we use it? Simple, to avoid trading in ranging markets. In the next section, we analyze how to configure it in your automated trading strategy! Designing your automated strategy Now that we know how we can make use of the ATR, let’s put it in practice! As we previously said, when the ATR line (orange line) is below the blue line, the price is not volatile and it is likely to be ranging. Ranges are usually called “No Trade Zones” since the price is not likely to offer many profitable trading opportunities. When the volatility is low, the ATR line is below will signal “Unconfirmed” and won’t let the other indicator(s) of your strategy open a position when it/they signal a buy. However, when the volatility starts to increase, the ATR line will go above the blue line. It means that the price is starting to trend. Then the ATR will signal “Confirmed” and will allow the rest of indicators of your strategy to open a position when it/they signal buy. As we can see in the chart above, we chose the ATR and the MACD. The zones where the ATR line is below the blue line are commonly ranges, that is, No trade zones. Even the MACD is making several bullish crossovers, it won’t open a position because the ATR is signal “Unconfirmed” . Nevertheless, when the price starts trending up, the ATR line rises over the blue line and signals “Confirmed” and will let the MACD signal buys and open positions. In the chart, we can see when this strategy opens positions. It avoids trading during ranges and trades during trends.
BITSTAMP:XRPUSD
by cryptohopper
1
Maximize XRP returns with triggersChart The cryptocurrency market has started to peak again the month and it seems like the consolidation phase is starting to reach its end. In the chart, we can see two lines, the green ones that depict the price of XRP against the stable coin USDT, and XRP against the unstable coin BTC. As we can see in the chart, the XRP/USDT line has increased by 25% during January. This significant increase suggests that the downtrend is fading and the bulls are waking up again. Regarding the XRP/BTC line, it has slightly decreased. Why? Usually, when the crypto market gets bullish the most capitalized cryptocurrency is the one that hops the highest. Likewise, BTC pairs normally remain stable and even decrease. This is a powerful insight to decide which coin to use as base coin when the market turns bullish. By taking this into account in your automated strategy, you could improve your trading results exponentially Designing your automated strategy With Cryptohopper you can take advantage of these situations and always maximize your returns. To face this kind of market where the sentiment suddenly turns, you can create triggers that will automatically change your template. In this way, you can create two different templates with a different base coin in each of them, one with BTC and the other with USDT. Example: If you configure a trigger that will automatically change your template when, for example, the Bitcoin increases 4% in 1 hour, the base coin will automatically change to take advantage of the current market conditions. Taking this to the XRP chart, we can see that if we would have changed to a USDT market at the beginning of January, the chances to have more profitable trades would have increased.
by cryptohopper
2
Combining Stochastic And Bollinger Bands To Trade BitcoinChart 2020 is the halving’s year and the crypto community is putting its expectations on Bitcoin as the cryptocurrency that will lead the rest of the market to new historical highs. Bitcoin is currently undertaking a consolidation process after the bull run that it had from April to June 2019. Every trader is formulating the same question: When is this correction going to end? Pinpointing when this turning point is going to take place can be crucial and very profitable for your crypto portfolio. Technical analysis is highly useful to find when this event can happen. Designing your automated strategy In this week’s automated strategy we have selected two strategies, the Bollinger Bands and Stochastic. This combination of a volatility and momentum indicator is intended to spot the moment where the price has decreased sharply and is likely to go back up. By selecting two indicators, it’s more likely that potential negative trades will not be traded. As can be seen in the Bitcoin chart, the strategy has only opened positions once both indicators were signaling buy . In this case, the strategy has been detecting successfully all the quick falls of the price to open a position at a price level where BTC is more likely to increase. You can also select the same indicators to sell the previously opened positions. In this way, once both indicators signal sell, it will close the position (unless you take profit or trailing stop-loss would have been hit)
BITFINEX:BTCUSD
by cryptohopper
USDT vs BTC, which one has been the last month's best base coin?Chart In this week’s analysis, we are analyzing two Ethereum markets . The first with a stable coin: ETH/USDT , and the second one Bitcoin-based: ETH/USD . That is, a stable base coin vs an unstable base coin. The chart shows exactly one month in both charts, from December 18th to January 18th. During this month, the Bitcoin price has increased by 38% and the market capitalization of the whole cryptocurrency market a significant 28%. The current scenario is very bullish and, if important levels such $9,200 are broken upwards, the consolidation process that started at the end of June 2019 can end sooner than we expected. As we can see in both charts, Ethereum has increased in both markets. Even in ETH/BTC, which means that it has had larger increases than the main cryptocurrency. In the section Designing your automated strategy we’ll analyze which market, the USDT or BTC one, has led to the largest return with the strategy selected. Designing your automated strategy In both charts, we’ve selected an indicator that you can only automate in Cryptohopper . The RSI with region crossovers . Let’s start first describing how this indicator will open and close positions: RSI with region crossovers gives the user the option to trigger a buy or sell only at crossover points of the chosen oversold/bought thresholds. This is different from regular RSI, which triggers constantly when the RSI lies in the overbought/oversold threshold set. If you select (IN), it will react when the RSI level goes from outside of the overbought/oversold threshold to inside of it. Vice versa for (OUT). By selecting the RSI with region crossovers and its option IN , this indicator will open positions once the RSI goes from the oversold region back into the neutral zone. Likewise, it will close positions when the RSI goes from the overbought region back into the neutral zone. Looking at the chart, we see the different buy and sell points in both markets. In one month, there has been around the same amount of buy and sell signals in the USDT and BTC market. However, the returns vary across markets. As we can see, the first chart had an average return of 14.2%, while the second, the BTC based chart, had 5.71%. The strategy has taken advantage of the price increases during the last month in both markets, but the USDT has been significantly higher. But, why? USDT is a stable coin, so when the coins are rather bullish, the market is very profitable in this kind of pairs. However, if you are trading from Bitcoin, the profitability of trading during bullish trends decreases due to BTC usually increases as well. Conclusion Be careful when you trade a bull market with BTC as base coin, the profitability can decrease! At the same time, think about switching your base coin to USDT in this kind of situations, you could highly profit from it!
by cryptohopper
2020 Outlook for #BitcoinChart The year 2020 has started and the crypto community has received it with open arms . This year is full of important events for the crypto industry, being the most-awaited and important one the Bitcoin halving taking place in May. In April 2019, the BTC price finally broke very key resistances and the bulls woke up after a long rest. The year 2019 has supposed the comeback of the cryptocurrency market to double-digit increases. So far in 2020, the price is still undertaking a consolidation process after the rise from $3,500 to $13,800 and can keep hovering between $6,800 and $8,000 during some weeks more. However, the expectations are very positive for this year and the price could break the maximum made in June 2019 at $13,000 once the supplied is cut by half and the sentiment goes up. Designing your automated strategy As mentioned before, the cryptocurrency market is likely to rise over $10,000 again, but for now, it’s trapped in a very notable medium-term downward trend. When it comes to automating your trading strategy, how can you build your automated strategy to avoid losses during the consolidation process and take advantage of potential positive trends? . Long/medium term moving averages can help you to filter out the noise of a trend and pinpoint the beginning of trends that last months. Medium-term moving averages combined with momentum indicators like DMI can work together very well when it comes to filter out potential fake or negative buy and sell signals. As we can see in the chart, during the correction phase, many buy signals that could become negative were not opened due to not bot indicators signaled a buy. Only the more secure buys and sells were open during this period. When it comes to applying this strategy to 50 pairs or more , the volume of signals will be good enough and the quality of the signals, very probably, will be higher.
BITFINEX:BTCUSD
by cryptohopper
1
Comparing XRP and ADA during 2019Chart The year 2019 has been an emotional roller-coaster for the crypto trader . A year that started with a continuation of the crypto winter we had in 2018, leading to further falls. However, the market finally turned in April and many coins saw an increase up to 300% in matter of two or three months. These two charts represent two of the most capitalised altcoins of the market, ADA and XRP . As can be seen in the chart, the distance between the maximum and minimum price during December 2018 and December 2019 has been 260% and 160% for ADA and XRP respectively. This year marked the end of the bearish market and the return of the positive volatility, one that goes up and not only tanks. In the case of ADA, the yearly minimum took place exactly one year ago, December 2018. Since then, it's maximums were at 0.10 USD per ADA, which is an increase of over 260%. Afterward, the price has declined so much that the coin has almost reached yearly minimums again. For XRP the year has been slightly different. It has actually broken it's yearly low, and it has been the altcoin (of the top 20 altcoins) that has decreased the most during 2019. However, it has been less volatile than ADA, since its volatility range has been (only) 180% This can tell us that in a potential bull run, ADA might be the more volatile coin, leading to bigger gains. However, if the market keeps retracing even more, ADA could be a worse investment. Designing your automated strategy The indicator that you can see in the chart is the Parabolic SAR. It is a trend indicator that helps to determine the price direction and when it might change. It is displayed by a series of dots above or below the price. If said dots are above the price, the indicator suggests a downtrend, while below the price an uptrend is suggested. In Cryptohopper, this is a particular indicator. Unlike signaling buy, sell or neutral values like most of the other indicators, the parabolic SAR only signals buy or sell. The indicator will follow the trend of the price and reverse when the price changes the direction of the current trend. However, for the Market Making bot, having an indicator that continuously pinpoints the trend of the market can be very useful to improve your results. Because you can change the settings of your market making bot according to market conditions, selecting this indicator in your strategy could improve your results.
by cryptohopper
Combining RSI And Bollinger Bands To Trade XRPChart The chart represents the XRP evolution during the last two months . Ripple currently finds itself hovering around their minimum levels post bull run, 0.20-0.22. As we can see in the chart, it has followed a bearish trend since the end of June, when the third most capitalized coin reached $0.5. XRP is near its lowest price after the bull run, which seems to be very solid ground to avoid further falls. Unless the current retracement, that most of the crypto market is undertaking continues for some time, Ripple has a huge potential since it might have found its minimum. Designing your automated strategy Due to Ripple is still trapped in a bearish channel, scalping can be the best option to trade in the current market. Quick in and outs during the positive pull-backs. For this, we have combined two indicators to give more solid buy (also sell) points: the RSI and Bollinger bands . This automated strategy compound by two indicators will open positions once both indicators have given a buy signal. As we can see in the chart, the Bollinger band needs to break its lower band and the RSI needs to be oversold for the strategy to open a position. Whenever this happens, the price has decreased very quickly in a small interval of time and therefore it is very likely that the price will perform a pull-back. These pull-backs usually give very good entry points during downtrends. In order to profit from these pullbacks, a good sell strategy that will close the position before the price starts falling again is crucial. You can easily automate a trailing stop-loss and take profit for this purpose.
BITSTAMP:XRPUSD
by cryptohopper
2
Long-term moving averages for BitcoinChart In this chart, we display how long-term moving averages can play a very important role in your strategy . Even though you are not a long term investor, long-term moving averages or long-term analysis are crucial to know where the market is heading to. In this chart, we can see how the moving average filters out the noise of the price and shows where it is likely to initiate a new trend. Generally, slow-moving averages that multiply by 3 the periods of the last ones are good to smooth price movements and pinpoint the direction of the ongoing trend. What is interesting is that after a crossover, the moving average usually doesn’t make another one after several months have passed. This suggests that the price can head to the same direction for quite a long time. This insight is key to the development of your trading strategy. Designing your automated strategy The indicator selected in the chart is the Weighted Moving Average (WMA). This moving average is designed to react faster to price movements than others like SMAs or EMAs. As you can see in the chart, this long-term and fast moving average has pinpointed very well the beginning of new trends. By selecting this in your strategy , the hopper will be able to open positions when a trend reverses. Or simply, by combining it with other indicators, it could filter out negative trades.
BITSTAMP:BTCUSD
by cryptohopper
6
Automating the RSI to profit from volatilityDesigning your automated strategy For today’s analysis, we have chosen two markets: XRP/BTC and EOS/BTC, a couple of the most liquid BTC trading pairs. We have selected 1 hour candle size and the indicator RSI With Region Crossover . First of all, let’s understand what this variant from the RSI will do in our strategy:

RSI with region crossovers gives the user the option to open or close positions only at crossover with the oversold and overbought thresholds, not when the RSI enters, for example, the oversold zone, but when it exits it. In this way, your bot will only open positions once the price is oversold and is recovering positive momentum (the price is going back up). Whit this setup, we want to open positions once: 1st. price has fallen quick enough to be oversold and 2nd the price is crossing from the oversold to the neutral zone. Therefore, it open positions when the price is more likely to go back up. Chart As we can see in the chart, The bot would have open positions once the RSI goes from the oversold to the neutral zone. Then, having more chances to get a positive trade. The green circles represent the buy zones and the sells would depend on your take profit, trailing stop-loss or strategy.
by cryptohopper
16