Many people say that long-term trading is way too risky. They may point out that you are putting in too much capital in very few assets or trades (even one, perhaps), while others say that you aren’t making any money in the meantime.
A lot of traders then come out saying that short-term trading is too frantic, that you need to be glued to your screen so you can make a small quantity that could be eaten away by your spreads anyway!
To appease those who’d rather stay in the middle, I’m presenting you here with a few tips for the daily BTC chart!
1. Why Should I Use The Daily (D1) Chart?
If you look at this graph...
You will quickly spot that there’s much more information and Price Action for holding positions on a weekly basis than in an actual Weekly graph (W1), so daily charts excel for medium-term traders who want to hold week-long positions without having too little or too much information.
As an example, let’s say you wanted to trade that huge drop from September 5th to the 9th. This is what you’d see on your daily (D1) chart:
This is what you’d see on your Weekly chart (W1):
Just two candles. Tough, right? Yet, this is what you’d see on your 4h chart:
Yikes! That looks a little overkill, doesn’t it? Not only do you have so much information on the screen, but let’s say that you zoom in:
You have less unnecessary price data (considering the medium-term trading), sure, but now you have those brief counter swings (blue arrows) that could make you exit the trade early, and if you survive those, you could then be caught by greed and minimize the issue of the upcoming upswings, making you miss the best price.
If you compare it to this:
It’s easy to see which one’s the best for trading on a weekly basis.
2. Trading The Daily (D1) Chart
When it comes to medium-termed positions, technical indicators start losing their strength in favor of fundamental factors; that’s the real strength of fundamental analysis. However, we’re still sitting in the middle, so using indicators is not really too big of an issue.
When trading day or week-long positions, moving averages start to become a good indicator so far. It's especially important to use moving averages primarily when there is some direction in the market and to avoid sideways moves. For instance, take a look at this graph:
Here, I’m using a 9-day EMA and SMA to measure the legitimacy of a possible trend after a crossover. This couple proved to be good for me, but you need to know how they work to not be fooled by fakeouts.
To illustrate my point, let’s have a look at some important cases:
As you can see, in the chart above there were two crossovers that ended up in a breakout and two crosses that didn’t.
Are the indicators failing?
If you’re not knowledgeable on this method of trading, then you may think that there is a 50% chance of the strategy working, but there’s one more indicator to this strategy: Price Action.
In both breakouts, the following two candles stayed below BOTH averages, while this didn’t stay true for the fakeouts. That’s the secret of this trading strategy, patience - and then enter into the confirmed trade.
Using moving averages is a good technique to determine the overall trend in which you should trade and the moving averages can be also treated as support/resistance price levels.
As soon as you determine the direction in which you should enter, simply wait for the confirmation - this can be a breakout, chart pattern or Price Action pattern.
After the trade is opened, place Stop-Loss below the swing high or swing low (or above or below a high or a low of a Price Action pattern). Take-Profit can be set based on the nearest support and resistance price levels, the position can be closed based on swings or we can trail the stop-loss into the profit for example based on the indicator Parabolic SAR.
What to add in the end? KISS, Keep It Simple Stupid!
Take care and trade well!
Probability is nothing more than the likelihood for an event to happen. We use probability to know how close to being certain we can be regarding an outcome.
When it comes to trading, high probability trading is a way to call the act of opening and closing positions where the chance of profit is very high.
Even though you can never be 100% sure that something is going to happen when it comes to trading, there are methods you can use to ensure that your trades have the higher chance of being profitable.
1. Measuring Momentum Through Price Action
Knowing when a trend is dying out or bursting is very important when it comes to placing a trade. The momentum of the trend is your first signal regarding which position you should open.
Trend Following trading systems provide some of the best and most profitable trading opportunities in Cryptocurrencies and Bitcoin.
As the name suggests, in this strategy I trade in the main direction of the market - so I simply go in the direction of the price moves. This is always an advantage as I don't care about the real value of Bitcoin or other Cryptocurrencies, but I simply trade in the direction of price.
Thanks to this strategy, most of the time I am on the right side of the market
With that philosophy in mind, I’ll present you an opportunity to do just that by adding Dash to your crypto trading portfolio.
Many people see Bitcoin trading as simply buying it and praying to God for the price to increase eventually, however, there’s much more to it.
Today, the biggest profit in the crypto market is to be made through short lasting trades - specifically, day trading.
With day trading, you can take advantage of the smaller movement prices that get overlooked as you study the long-term trends of the industry, which can be stagnant for some time and therefore not suitable to long-term holders.
On the other hand, trading with charts that are smaller timewise opens the door to more profitable trades thanks to the movements being more significant.
1. Advantages Of The 1 Hour BTC Chart
First, take a look at this weekly chart:
Seeing as how this is a very popular coin - and one with manageable volatility - we’ve created this guide to show you some ways you can trade Litecoin!
In this article, I'm going to show you a way how to make your trades safer without having to rely on any indicator - but you will just need to look at the charts!
There are people who simply weren’t born for long-term trading. There are many traders who rather take smaller trades with the advantage of frequency, thanks to benefits like smaller losses, no overnight fees, and let’s face it, more fun.
So, if you’re looking for ways to make your day trading more successful, then don’t be afraid. We will show you some ways you can enter trades with this timeframe and provide you with examples on how to carry them out.
Day trading is a style of trading and not a specific strategy in itself. Day traders prefer the ability to open a larger number of smaller trades instead of opening one trade and holding it for a longer-term.
1. Best Indicators For Trading the 15m Timeframe
The best indicators for this 15-minute chart strategy are the EMA, MACD, and Parabolic SAR.
The EMA lets you spot trends easier, and you can get good information if you use for example a combination of two different moving averages. The MACD offers a similar function, but it’s better for confirming trend strength. On the other hand, the Parabolic SAR lets you gauge short-term momentum and provides good stop signals when coupled with the rest.
Why do I like the 6 Hour chart? Not many use it. Most traders use standard time charts, so using less common parameters for your trading can place you ahead of the pack thanks to how to using unique information to make trades.
Note: Using custom time frames is something that you might not be able to do on your current broker, so make sure that’s available if you want to use it. If your broker doesn’t support this feature, then you may want to start looking for another one for the long term.
1. Trading The 6 Hour BTC Chart Without Indicators
As I’ve stated previously, price action is a very powerful and versatile indicator in its own right.
That’s because all other tools are really just ways to simplify the information provided by price action and are derived from price action. Hence, elite traders rarely use indicators and they can obtain all the information they need just by looking at the candlesticks alone!
So, let’s see how I traded this 6H chart just by using price action:
Double tops and double bottoms are some of the most popular chart patterns for traders. Therefore, they tend to be those you learn first when it comes to trading chart patterns when trading cryptocurrencies.
Due to how commonplace they are - and how profitable it can be to know them - I’ve prepared this guide so you can know exactly how to proceed when you encounter one!
So, read on and learn how to trade double tops and double bottoms!
What’s a Double Top?
But of course, if preferred - you can go on lower time-frames and still trade the swing trading strategy. By doing so, you would most often open and close trades within the same day.
Multiple strategies use price swings as a base to success, like the "Stuck in a box" or "Catch the wave" which are two of the most popular and effective swing trading strategies.
If you are interested in making money with NEO, then take a seat and keep reading because I’m going to show you how to trade and take advantage of this great opportunity.
Trusted FX brokers
Haven't found what you're looking for? Contact us!
Forex Education - Basics:
Free Forex eBooks:
Forex Education - FX Brokers:
Forex Education - Technical Analysis:
Forex Education - Money Management:
Other trading tools: