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FX.co ★ Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

1.BCHUSDT volume analysis on the Binance Exchange.

2. Analysis of the long-term trend.

3. Analysis of the medium-term trend.

4. Analysis of the short-term trend

5. Japanese candlestick analysis.

6. Conclusions.

7.Statistics.

1. BCHUSDT volume analysis on the Binance Exchange.

In this analysis, we will use the data on horizontal trading volumes from the Binance Exchange on the daily charts. The analysis is based on the footprint-profile theory. According to it, the direction of the level with the highest traded volume during the day can indicate the possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions was made. This is the level of major market players. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. Chaotic movement signals that the market is trading flat.

28.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 465

01.03.21 – The level of the maximum traded volume (POC – PointOfControl) – 489

POC has moved higher, the price is located above the POC level. An uptrend has started, so you can open buy positions.

2. Analysis of the long-term trend.

A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

long-term;

medium-term;

short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

A long-term trend is a trend on the daily chart. Trades will be opened on the daily time frame and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48), an exponential moving average with a period of 48. If the daily candlestick closes above the EMA (48), then we have an uptrend and we should open buy positions. If the daily candlestick closes below the EMA (48), then there is a downtrend and we should go short.

Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

The price is holding at the EMA(48). The long-term trend is moving sideways, so you can both sell and buy.

3. Analysis of the medium-term trend.

In our analysis, a medium-term trend will be the trend on the 4-hour chart (H4). EMA(48), an exponential moving average with a period of 48, will also be used in this analysis. If the H4 candlestick closes above the EMA(48), then we have an uptrend and we should open buy positions. If the H4 candlestick closes below the EMA(48), then there is a downtrend and we should go short.Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

The price is holding at the EMA(48). The medium-term trend is moving sideways, so you can both sell and buy.

4. Analysis of the short-term trend.

A short-term trend that can also show an entry point into the market is considered a trend on the H1 time frame. Here, we will again use the EMA(48), an exponential moving average with a period of 48. If the H1 candlestick closes above the EMA(48), then there is an uptrend and you should open buy positions. If the H1 candlestick closes below the EMA(48), then there is a downtrend and you should go short.

Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

The price is holding above the EMA (48). The short-term trend is moving up. The long-term, medium-term, and short-term trends are moving in different directions.

5. Japanese candlestick analysis.

The Japanese candlestick analysis is applied to the daily time frame. In this analysis, we will also analyze the daily candlestick.

Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

The daily candlestick marked with white closed higher. Its high is located above the high of the previous candlestick. The candlestick patter is a Spinning Top with a short body and short shadows. A sideways movement is very likely.

6. Conclusion

1.Volume analysis BUY.

2.Long-term trend BUY SELL.

3.Medium-term trend – BUY SELL.

4.Short-term trend BUY

5.Japanese candlestick analysis BUY SEL

General conclusion: on March 2, 2021, you can go long and short.

7. Statistics

To analyze the effectiveness of this approach, we will keep the data on completed transactions. We prepare forecasts and open our trades on four major instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Please, check other articles regarding this topic.

Monthly gain in February 2021 is +10.93%.

Statement:

Forecast for BCHUSD on March 2, 2021 – BUY SELL. February gain +10.93%

We opened the following trade:

26.02.21 BCHUSDSELL: 465.86; SL: 568; the risk management is 1% of the deposit of $10,000 with the trading volume of 0.96 lot.

When opening new positions, you should place Stop Loss beyond the daily extreme points. Do not place Take Profit, as we will continue to move Stop Loss beyond the extreme points in the future sessions.

Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.

Trade with the trend and you will gain profit!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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