Step One: Find the currency pair that is showing a high the last 50 candlesticks. (OR low depending on the trade) The 80-20 Trading strategy can be used for any period or any market. This is because there are reversals of trends in every period. This can be a swing trade, day trade, or a scalping trade. As long as it follows the rules, it is a valid trade. We also have training for building a foundation before a forex strategy matters. In this step, we only need to ensure it is the low or the high of the last 50 candles. Step Two Using the RSI Trading Indicator: RSI Settings - Period 8 - Levels 80/20 When we find 50 candle low, it needs to be coupled with RSI reading 20 or lower. (If it’s high it needs to be combined with the RSI reading 80 or higher.) Once we see that we had a low, the last 50 candles, and the RSI is BELOW 20, we can move to the next step. Remember that this strategy is a reversal strategy. It is going to break the current trend and move the other direction. Step Three: Wait for a second price (low candle) to close after the first one that we already identified. The second price low must be below the first low. Although the RSI Trading indicator must provide a higher signal than the first. Remember that divergence can be seen by comparing price action and the movement of an indicator. If the price is making higher highs, the oscillator should also be making higher highs. If the price is making lower lows, the oscillator should also be making lower lows. If they are not, that means price and the oscillator are diverging from each other. Which is why it’s called “divergence.” Just because you see a divergence, doesn’t mean you should automatically jump in with a position. We have rules in place that will capitalize on this divergence so that we can make a significant profit. Keep in mind, that this step may take time to develop. It is very important to wait for this second low because it gets you in a better trade making position. Price goes down/RSI goes up. That is the Divergence. Remember that our example is a current downtrend looking to break to the upside. If this was a 50 candle high, we would be looking at the exact opposite of this step. Step Four: How to Enter the Trade with the RSI Trading Strategy. The way you enter a trade is very simple. You wait for the price to head in the direction of the trade and wait for a candle to close above the first candle that you identified that was previously 50 candle low. Step five: Once you make your entry, place a stop loss. To place your stop, bump back 1 to 3 time periods and find a reasonable, logical level to put your stop. You are looking for prior resistance, support. Step 6: I recommend you follow at least a 1 to 3 profit vs. risk level. This will ensure that you are maximizing your potential to get the most out of the strategy. You can adjust as you wish. Keep in mind that most successful strategies that identify breaks of a trend use a 1 to 3 profit vs. risk level.
Well, this looks like a Bearish Ascending Triangle. What's troubling me is not enough data points on the base of the triangle, so this is perceived on the 4-hour timeframe. Outlook: Well, Bearish it appears. In this crazy crypto-world up is down and down is up, nevertheless, I have formulated a strategy that appears simple enough to me. I have located my possible entry point if we begin to explode north and a stop-loss for anyone already in the game at these levels. I am a bit disappointed with some of my ETH analysis so I am keeping this strictly to my strategy and how I might enter a position. I am already holding some I left on the table but it's not worth as much since the drop in price. If we continue to compress volatility in the triangle, I am looking for the explosive move. There is support down at the .618 Fib level. The top of the triangle is a defined bearish trend with 5-data points holding as resistance on the 4-Hr. Note, TA is correlated to time and only forward-looking a few days. I am looking to scalp 20 percent from this dog which means I would be looking for entry at around the $131.00 level as noted in the price balloon on the chart and looking to make $26.00+ on exit, putting me right on the top of the Jan 09 candle $157.00). This is a reasonable expectation, but possible? Your guess is as good as mine. We are over-extended on the retracement which in the crypto-game doesn't really mean much except, theoretically, we should be ready for a move north! DON'T HOLD YOUR BREATH. We can get an idea of the move south by taking the height of the triangle and predicting that probably suggests a strong short-term drop level (on the 4-hr) which would land ETH right on the .618 Fib line (Just a thought). Did we already see the big move from the coming Hard-Fork? Did they blow us up and let us go already? Did I miss some news? This game will make you crazy so stick to your risk profile and don't deviate. There is a whole year to make some money swing trading this dog. We are gonna miss some and catch others, but you can't make money if you're not in the game. Set alerts, and make your trading automatic! Good Trading, Biff
What do mortals do in panic? 1. They stalk at price and literally dont do anything. 2. Then, they deny everything. 3. They fear to do anything, then to miss out. 4. They encourage themselves to participate, in panic. https://www.tradingview.com/x/PdW3AaKy/ Daily chart shows some clear signs of bear flag https://www.tradingview.com/x/kvFgJIsA/ F&G Increased in Consolidation from 19 to 22. That's extreme fear Bitcoin wants to pullback a little bit too https://www.tradingview.com/x/UhkQcisv/ But I am not taking the trade right now. I am just observing. If everything lines up, I will take the trade. Otherwise - nothing.