Day trading Bitcoin: Bounce strategy As this is a day-trading strategy, we are only looking for a bounce, not a complete reversal. Judging from the two previous occasions, the price rebounded strongly off the trend line, providing us with the optimism the same may happen for the third time. Apr 14, · The best Bitcoin trading strategy is an 85% price action strategy and a 15% cryptocurrency trading strategy that uses an indicator/5(48). The only indicator I ever employ is a short-term simple moving average. Let's look at the simplest day trading strategy in the world. Timeframes 2 hours. I am going to use a 2-hour chart. Anything lower than this IMO has far too much random noise. Whilst anything higher and you’re getting into the realms of swing trading, not day trading.
Strategies for day trading bitcoinDay trading Bitcoin: 3 easy strategies - AAX Academy
Have you ever known a business that required no customers, no selling, was location independent, no stock purchases and no marketing? Have you ever known a business that was location independent and didn't require a special business premise? Or one where you could make up your work hours? There is no business in the world like that, except one. Here at Mitrade we want to help you make your trading journey both as enjoyable and as profitable as it can be.
Day trading cryptocurrencies CFDs is just one of several routes to do that. Mitrade is an ASIC regulated broker. They provide reasonable leverage based on different trading instruments Gold , Bitcoin , most forex Also, Mitrade provides you protection against negative balances, allowing you to control the trading risk and trade with peace of mind.
Zero commissions, low overnight fees, and competitive and transparent spreads. All costs will show on your deals order. The minimum size per trade is as low as 0. Leverage up to You will enjoy seamless trading via both iOS and Android mobile apps along with web platform. Provide more than popular global trading instruments. The content presented above, whether from a third party or not, is considered as general advice only.
This article does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
Mitrade does not represent that the information provided here is accurate, current or complete. Mitrade is not a financial advisor and all services are provided on an execution only basis. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Please read the PDS before choosing to start trading. Welcome to Mitrade. Forex Indices Commodities Shares Cryptocurrencies. Trading Platform. FAQ Help Centre. Basics Education Insights. About Us. Simplest Day Trading Strategy Ever. John Williamson Traders who are trading using this strategy are not interested in the initial breakout; instead they set their focus on a potential retest of the cleared level.
The line of thought behind this strategy is that a consolidation, or minor pull back, is healthy as the trending asset regroups before continuing higher. We use the same situation as for strategy 1 since it offers the setup we are looking for. The bulls clear the first resistance level, move higher, get tired and rotate back lower to retest the previous resistance, which now acts as a support. The higher volume behind the retest suggests that the price will either break the support and return back below the previous resistance or bounce and make a new swing high.
The latter scenario is at play here as the bulls take the price to the second level of resistance after regrouping near the first resistance. It took Bitcoin around 3 hours to travel from the first to the second resistance level. Again, the stop-loss is set below the support level. By performing basic technical analysis on a chart, we identify clear support and resistance levels. The bounce day trading strategy can be used to look for a bounce off of the trend line, MA, pivot point etc.
By drawing a trend line to connect the two most recent swing low, we look closely to try and capitalize on the potential third touch of the trend line. As this is a day-trading strategy, we are only looking for a bounce, not a complete reversal. Judging from the two previous occasions, the price rebounded strongly off the trend line, providing us with the optimism the same may happen for the third time.
The stop loss is both below the trend line, as well as below the horizontal support the previous swing low. Setting the profit-taking level for this strategy is optional. One can either look for a specific indicator — Fibonacci retracement , MA , etc.
We are looking to close if the price hits the 20 MA. Ultimately, the bulls push the price towards our profit-taking zone in just two hours. There is a lot more information to extract, which will hold significance in your trading. Trends show the momentum of Bitcoin price changes in a particular direction. You can identify these patterns on a chart and make decisions based on that data. Peaks in an uptrend and throughs in a downtrend form a trend channel, which is a commonly used concept in the technical price analysis.
The channels show where Bitcoin is trading at a particular time and compares it to the overall direction. Price changes are not linear. That is why technical chart analysis utilizes levels of support and resistance — they showcase short-term trends within the overall trend. Resistance shows where an upward trend is expected to pause or rebound. That means that there are many buyers concentrated at that time. Resistance can be used as an exit point for a transaction.
A level of support can be used to predict where a downward trend can pause or rebound. This can be used as an entry point. Market orders are the fastest way to enter or exit a trade at the best price available at the time. However, instant execution means that the price becomes secondary. When you place a limit order, it will only be triggered once Bitcoin reaches the price you set. Thus, you may get a better price if you are patient enough.
Bear in mind that the price should be profitable for you but still realistic. The limit order will not be executed until there is a seller or sellers willing to accept the price that matches yours. If the market price is lower, it simply will not execute your order. Here are the benefits of limit orders:. However, some aggressive trading techniques do not suit limit orders. In situations when fast execution is more important than the price difference, you should opt for market orders.
When you are day trading, the activity on the exchange occurs very sporadically. Before you commit to any exchange, take your time to fully explore its functionality and thoroughly evaluate the drawbacks. Here are the best crypto exchanges for Bitcoin day trading:.
Many traders shared their experiences about their psychological struggles that have caused them losses. If you want to avoid quietly sabotaging your trading profits, adopt the right mindset:. Trading cryptocurrency for profit is a difficult craft in itself.