This is TSG
Trading Strategy. 5 easy steps to profit. This best Bitcoin
trading strategy is 85% price action strategy and 15% a cryptocurrency trading strategy that uses an indicator. On Balance Volume
(OBV): This is one of the best indicators for day trading bitcoin
used to basically analyze the total money flow
in an out of an instrument. The OVB uses a combination of volume
and price activity to tell you what is the total amount of money going in and out of the market. We are going to look after price divergence between Bitcoin
price and Ethereum
. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency. If Ethereum
price breaks above an important resistance or a swing high and Bitcoin
fails to do the same, we have smart money divergence. The reason why the smart money divergence concept works is because the cryptocurrency market as a whole should move in the same direction when we’re in a trend.
What we want to see when Bitcoin
is failing to break above a resistance level
or a swing high and the Ethereum
already broke is for the OBV to not only increase in the direction of the trend, but to also move beyond the level it was when Bitcoin
was trading previously at this resistance level
. Place a buy stop at the resistance level Bitcoin
needs to break. Place stop loss below the breakout candle. Take profit when reversal candle patterns develop.
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