Hello Steemians!
As we all know, Moving averages (MA) are used to find out the price trends (Bullish/Bearish trend). The 18-day MA, using a 1-day time frame can be easily and accurately used to predict the possible behaviour of the market. The simple 3-step strategy which we will be sharing can be used both for buying at low price and selling high as well as for short-selling. Let’s get started.
For Buying at low price
Step 1: A green candle breaks the 18-day MA, and the next candle breaks the high of the previous candle. This is a buying opportunity.
Step 2: Buy at the current price and set the stop loss at the low of previous candle
Step 3: Take profits at regular intervals.
Let’s take an example:
Step 1: The candle 2 breaks the 18-day MA and candle 3 breaks the high of candle 2.
Step 2: We buy at the current price and set the stop loss to low of candle 1.
Step 3: Take regular profits at 10%, 20% and so on.
For Short selling
Step 1: A red candle breaks the 18-day MA, and the next candle breaks the low of the previous candle. This is an opportunity for short selling.
Step 2: Take position for short sell and set the stop loss at the high of previous candle.
Step 3: Take profits at regular intervals.
Let’s take an example:
Step 1: Candle 1 breaks the 18-day MA and candle 2 breaks the low of candle 1.
Step 2: Take a position for short sell and set the stop loss at the high of candle 1.
Step 3: Take regular profits at 10%, 20% and so on.
As you can see, it is very easy to use this strategy. For the complete analysis of BTC/USD chart of past one year using this strategy, please watch our YouTube video explaining this strategy. The strategy is explained in detail along with accurate results.
Also, if you are interested in more such analysis and want to learn more about Crypto-trading, consider subscribing our channel.
Regards.
YouTube channel: Crypto King of India