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1. How to make money on cryptocurrencies?
2. Analysis of bitcoin futures volumes from the Chicago Futures Exchange (CME)
3. Trend Analysis
4. Japanese Candle Analysis
5. Conclusions. Statistics.
1. How to make money on cryptocurrencies?
To start making money systematically on the cryptocurrency market, it is important not to rush anywhere. The market will not disappear tomorrow, so there will be opportunities for earning money every day. It is better to allocate enough time to learn how to trade on cryptocurrencies and only then trade. It is important to understand that only those who treat trading as a profession and not entertainment can consistently earn money in the market. Is it possible to quickly acquire a new profession? No. This requires enough time. Therefore, if you want to make money on cryptocurrencies, then give yourself time to learn. Time is needed for:
- training courses
- daily practice
- books on trading
- testing of trading strategies, etc.
The time spent on training will give you invaluable experience and will allow you to take a more objective look at the cryptocurrency market. If you do not rush, you will lay a good foundation for your growth as a trader. By gaining experience and knowledge, you will be able to trade as professional market participants. Let's look at the current market and try to understand what the big players are doing now.
2. Analysis of bitcoin futures volumes from the Chicago Futures Exchange (CME)
Bitcoin continues to keep from falling (see the image at the beginning of the article). Most likely, the potential for further growth remains, the fall of last week was stopped. The corridor movement continues in the market, bitcoin is held between the levels of 50300 - 60000. It seems that in this range, there is an accumulation of positions by large players before a new move. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.
03/25/21 – The level of the maximum horizontal volume (ROS-Point Of Control) – 50815
03/26/21 – The level of the maximum horizontal volume (ROS-Point Of Control) – 53995
The ROS has moved up and the price continues to hold above the last ROS. This indicates the strength of buyers and in the short term we may see an upward movement. Therefore, from the point of view of volume analysis, today we can consider purchases.
3. Trend Analysis
Trend trading offers great prospects. But trends in the market occur infrequently. Traders try to enter the market often, and while the market is flat, such trades can be ineffective. Trade less often, but trade according to the trend. Analyze short-term, medium-term and long-term trends, and when they coincide, look for a point to enter the market. These forecasts use an exponential moving average to analyze the trend:
The long-term trend is EMA 1152 (blue) on the H1 timeframe, which is similar to EMA 48 on the D timeframe;
The medium-term trend is EMA 288 (red) on the H1 timeframe, which is similar to EMA 48 on the H4 timeframe;
The short-term trend is the EMA 48 (black) on the H1 timeframe.
All three trends are the same. The price is higher than all three EMAs, respectively, the trend is upward. In this situation, from the point of view of trend analysis, you can consider purchases.
4. Japanese Candle Analysis
Japanese Candle Analysis helps to look into the future. A good understanding of candle configurations makes it possible to predict the market and avoid losing trades. Let's analyze yesterday's daily candle:
Yesterday's candle is black, it was closed at the bottom, the bears won. The body and shadows of the candle are completely inside the previous candle, which could be due to the weekend. Candle configuration -Tweezers - the last two candles have almost identical highs. The candle configuration is reversed, it is possible to move down. From the point of view of candle analysis, today we can consider sales.
5. Conclusions. Statistics.
Volume analysis – BUY
The long-term trend is BUY
The medium-term trend is BUY
The short- term trend is BUY
Japanese Candlestick Analysis is SELL
General Conclusion: 03/29/21 – you can buy and sell bitcoin in the short term, as different types of analysis give different forecasts, the market is flat.
Only statistics can show the effectiveness of any trading approach. According to these forecasts, transactions are made on a separate account and open statistics of these transactions are provided. Transactions are made on four instruments - Bitcoin, Ethereum, Litecoin, BCH USD - which are analyzed in a similar way. The result for the two months of 2021 is +10.42%. Regulation:
At the moment, one transaction is open:
03/25/21 Litecoin SELL: 174.44 SL: 201; Risk per transaction: 1% of the deposit. With a deposit of$ 10,000, the lot is 0.04.
I do not open new deals today, there is uncertainty in the market. The transaction on BCH USD, closed at breakeven.
The risk per transaction is not more than 1%, this approach is conservative. The stop loss for this system is set behind the minimum or maximum of the signal day, depending on the direction of the transaction. The profit is given the opportunity to grow without restrictions, since I do not set a take profit. I accompany the trade by moving the stop loss beyond the extremes of the new days.
Since trading is conducted on daily charts, this recommendation is relevant throughout the day.
Trade on the trend, and you will have great profit!
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