1. How to make money on cryptocurrencies?
2. Volume analysis of BTC from Chicago Mercantile Exchange (CME).
3. Trend analysis
4. Japanese candlestick analysis
5. Conclusion. Statistics
1. How to make money on cryptocurrencies?
Do you want to make money on cryptocurrencies? Then, backtest your trading strategy. Once you come up with your trading strategy, it needs to be tested. This may seem boring because you want to start trading and make money as soon as possible. However, backtesting has a row of important advantages:
- You gain experience quickly. Experience comes invaluable during live trading. However, it may take several months to gain it. You can analyze the same number of trades and market situations in a few hours of testing. This way, you can train your market analysis skills. Consequently, analysis will take less time.
- It saves time. Any trading strategy has profitable and unprofitable periods. Sometimes such periods can last for several months. Accordingly, it can take you a lot of time to see if your trading strategy works. If it turns out to be ineffective, then you can spend a lot of time comprehending this. With the help of testing you can check the efficiency of your trading strategy in a few hours.
-It saves money. By backtesting your trading strategy, you save money. Testing is free. All you need is time. To find a profitable one, you need to check several trading strategies. And backtesting can help you with that.
Test your trading strategies because it is the right way to professional trading.
2.Volume analysis of BTC from Chicago Mercantile Exchange (CME).
Yesterday, the price took a break. The market was flat (the image at the beginning of the article). Today, the bullish trend continues. Bitcoin rises. Other cryptocurrencies follow suit. The target remains the same - to reach $62,000. Holidays are ahead and the price may slow down its movement. Next week, however, it may extend or we will see how the price hits a new record amid low liquidity during holidays. Let us consider the levels of the highest traded volume from the Chicago Mercantile Exchange (CME). These levels indicate the bullish market.
31.03.21 – the level of the highest traded volume (POC – PointOfControl) – 60,015
1.04.21 – the level of the highest traded volume (POC – PointOfControl) – 59,535
Yesterday, the POC moved down. Today, the price is above the two previous POCs. The market is bullish. According to volume analysis, you can buy bitcoin today.
3. Trend analysis
Everything in the world around us - growth and aging, ebb and flow, seasons - is subject to trends. The market is no different. Trends emerge here from time to time. Trading with the current trend, a trader moves with the market and can earn a relatively stable income. In this forecast, the trend is analyzed with the help of an exponential moving average:
Long-term trend – a blue EMA 1152 on the H1 chart, which is an alternative to EMA 48 on the D1 chart;
Mid-term trend – a red EMA 288 on the H1 chart, which is an alternative to EMA 48 on the H4 chart;
Short-term trend – a black EMA 48 on the H1 chart.
We have a steady bullish trend. The price is above all three EMAs. The long-term trend, the mid-term trend, and the short-term one are in line. Based on trend analysis, you can enter long positions today.
4. Japanese candlestick analysis
Japanese candlestick analysis is the third step in this trading system. Let us analyze yesterday's daily candlestick:
We have yesterday's black down candlestick. It is a reversal Hammer candlestick pattern. Today, the price has already broken the high of yesterday's candlestick. The bullish trend goes on. According to Japanese candlestick analysis, you can buy bitcoin today.
5. Conclusion. Statistics
- Volume analysis – BUY
- Long-term trend – BUY
- Medium-term trend – BUY
- Short-term trend – BUY
- Japanese candlestick analysis – BUY
Conclusion: You can buy bitcoin April 2, since different types of analysis give similar forecasts and the market is bullish.
Only statistics can reveal how efficient a trading strategy is. In this forecast, trades are carried out in a separate account. Trades are conducted in four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Gains for two months of 2021: +8.2%. Statement:
Today, I have opened two trades, one in Litecoin and one in BCH/USD. All the analyzed cryptocurrencies are heading upward.
The risk per deal is no more than 1%. A Stop Loss is placed beyond the high/low of the day, depending on the direction of the trade. A Take Profit is not set. A Stop Loss is moved beyond the extreme points of the upcoming sessions.
Since trading is carried out on daily charts, this recommendation is relevant throughout the day.
Trade with the trend and you will generate profits!
