Crypto Trading Cheat Sheet (2018)

Motiv8tors together with BWC(Bitcoins Wealth Club) society provides in public the top 5 technical analysis indicators to determine in less than 5 minutes when is a good time to trade for profits!

First of all let’s talk about the goals, your goals with trading cryptocurrencies:
– Increase the amount of Bitcoin that you currently have.
-Accumulate cryptocurrencies for the long term buying them at low prices at the dips so that you can sell them later for big profits.
-Protect your wealth and increase your financial net worth in USD value

And the only way you are going to accomplish those goals is with these trading indicators I am going to explain to you in simple words.

Also couple of very crucial rules to ensure you minimize your risks

  • Make sure you hold your Bitcoin and altcoins in Trezor or Ledger hardware wallet for your long term holdings if you don’t trade them.
  • Spread your trading funds out over 2-3 exchanges, that way if one gets hacked your total trading portfolio is not wiped out.
  • Risk no more than 1-2% of your account per any trade.
  • The higher the trading amount the lower should be your stop loss. For example on $1,000 trade you may put 10% stop loss and $50,000 trade 2% stop loss.
  • Start small, whatever capital in Bitcoin you can put into the market and won’t lose any sleep over and practise first on small trades (0.5% of your trading account per trade)
  • The strategy in the bear market is to make consistently 1% – 5% gains
  • Go for more quality trades than quantity of trades, trade less and earn more! If the trade is not good and all indicators tell to buy, don’t buy.
  • Take 100% responsibility for your trading decisions even if you are using trading signals!
  • Remember that markets always have cycles, so don’t be greedy (take profits and exit trades) and don’t be fearful (sell in bear trends when asset is undervalued)

What do you really need to get started?
1. Create an account on the exchange and deposit Bitcoin into the exchange (I recommend Binance and Bittrex exchanges)
2. Use the charting tools like Coinigy or Tradeview.com

On your exchange always put a 2 Factor Authenticator with a Google Authenticator App and SMS Authentication, so that hackers won’t able to access your account.

Now the indicators…

1. Fibonacci Retracement – Buy zone is more than 50% at least from the last retracement (sweet spot is 50% -61.8%) and ideally at magical 88%!

Traders use the Fibonacci retracement levels (or Fibs in short) as potential support and resistance areas and target for entering/exiting trades.

In order to find these Fibonacci retracement levels, you have to find the recent significant Swing Highs and Swings Lows.

So to find the SUPPORT area to BUY, start by drawing out a Fib Retracement on the DAILY chart!

1. First click: bottom of a downtrend
2. Second click: top of the uptrend

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NOTE: Larger time frames (4hr, 1 Day) give better analysis but lower time frames can be used for day trades and swing trades (5 min, 15 min, 1 hr, 4hr)

2. Trendlines – Buy when the candlesticks broke through the downward trendline and sell when the candlesticks broke the upward trendline!

  • 3 touches along the trendline constitute a valid trendline, 2 touches constitute a tentative one
  • Longer lines are more powerful and price will react more forcefully to breaching them
  • Bigger time frames are more likely to give valid lines
  • The STEEPER the trend line you draw, the less reliable it is going to be and the more likely it is that it will break.
  • Like horizontal support and resistance levels, trend lines become stronger the more often they are tested.
  • DO NOT EVER draw trend lines by forcing them to fit the market. If they do not fit right, then that trend line isn’t a valid one!
  • Try to draw to the wicks but this isn’t a hard rule
    • Don’t skip a nice trendline just because the wick of a fake out interferes
  • I use the 1H, 4H, and 1D to draw my trendlines
  • Keep an eye out for trend lines that were broken – when a trendline breaks down, it’s a signal to sell, when a trendline breaks up, it’s a signal to buy.

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3. Bollinger Bands – When close to the bottom of the bollinger bands it’s time to buy and when close to the top it’s time to sell!

Bollinger Bands measure the volatility of cryptocurrency.

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4. RSI (Relative Strength Index) – Buy when RSI is 20% -30% area and sell when RSI is in 70% – 80% area.

Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. RSI is considered overbought when above 70 and oversold when below 30.

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5. Support And Resistance – Buy support and sell resistance!

When the market moves up and then pulls back, the highest point reached before it pulled back down is now resistance.

As the market continues up again, the lowest point reached before it started back up is no support.

In this way, resistance and support is continually formed as the market oscillates over time. The reverse is true for the downtrend.

If price adequately breaches a support level, it becomes resistance. If price adequately breaches a resistance level, it becomes support. Price will often retest prior breakout points to confirm past resistance is now support. The price will move in these zones and once it breaks above prior resistance (referred to as a breakout) it will usually come back down to that area a few times to confirm it is now support for the next move up.

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Thank you for your time,

Want a way to get trading signals by experts? If yes click here. If not, Happy Trading!

Train the smart way, be a cre8tor and a motiv8tor in your life!

~Motiv8tors

References:

  1. https://bitcoinswealthclub.com

 

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