This is a trading plan for crypto traders, it works well with BTC, ETH and XRP, which are top 5 liquidity and circulating supply leaders in the crypto market. This plan can also be adapted to almost any cryptocurrency. The system is for swing trading reversals in the direction of the main trend or ranging market.
The first step is to get a good quality crypto charting system, there are many platforms and charting sytems available that are high quality. Determine the main trend on the larger time frames and trends on BTC and the market in general, up or down. In some cases the market may also be ranging. We suggest bigger time frames are like H4, H8, H12, D1, W1. This is called multiple timeframe analysis and works on forex, gold and crypto.
Buy Trades
If the larger time frames indicate an uptrend, wait for the market to move down for 2-3 days and stall and go sideways. So you are looking for a big sell off against the main trend, then the price stalls at a support level. This is called a relative low. Then start monitoring and watch for reversal back up into the larger uptrend and make sure the crypto heatmap is all green, BTC ETH and XRP, see example images below. Monitoring the crypto heatmap for upside market momentum along with the smaller time frames will guide your trade entry into the larger reversal uptrend into the main trend.
This way the entire crypto market momentum will be behind you as you enter the buy trade. Trading the crypto market this way makes your trade entries much safer while still trading in the direction of the main trend.
ETH Etherrum Strength
ETH Ethereum M30 Time Frame
Manage the trade with stop order and scaled profit taking, especially when using margin, move stop to breakeven as BTC proceeds up and start scaling out lots to your resistance target price.
You can use this strategy to daytrade, or to build a long term position in BTC or the other top cryptos with a professional approach, if you are a long term position trader.
LIVE LINK TO THE BITCOIN HEATMAP:
https://forexheatmap.com/crypto/ff6318149/
Sell Trades
These methods also works exact same way for sells into downtrends. If the main trend on the larger time frames and trends on BTC and the market in general, is down, then wait for BTC to cycle up and stall at resistance. Then start monitoring for a sell into the main downtrend.
XRP Swing Trade H4 Time Frame
Crypto Selloff Live Signals
Other Crypto Trading System Components
If you want to trade other cryptos besides BTC, ETH or XRP we would use the same system as described above. This is because most cryptos move somewhat in tandem with BTC. So analyze BTC first, then analyze your favorite cryptos, then if they are all moving in tandem you can still use a system like this, and the overall market with heatmap for guidance for trade entries.
Some crypto trading platforms offer leverage as high as 1000:1, some offer no leverage at all. On your crypto platform observe the spreads and make sure they are low with little fluctuation. If you cannot locate a crypto demo trading platform you can start by trading small dollar amounts until you get the hang of it. Stop orders are available also on some, but not all platforms we have seen. Stop orders on all trades are recommended for true swing traders who need to protect smaller accounts. The news calendar events can drive movement, so get access to a good news calendar to keep track of important news drivers on the larger fiat currencies like the USD, EUR and JPY. Some crypto platforms have price alerts, which can be use to monitor prices for the start ov reversal cycles. We use price alerts on all of our forex trading plans. They work very well.
Low Spreads On XRP
USA clients can check Coinbase, Kraken and BinanceUS platforms, they all have advanced charting and execution platforms with robust features. Or any other wallet with with robust features.
Crytpo Trading Is The Future
We belive forex and gold trading are great options for traders. Over the next several years crypto trading will become a great option as well. Set up your trading systems now for long term access to this emerging market.