FX.co ★ Horizontal volume forecast for Bitcoin, 19.04.21

1.How to make money on cryptocurrencies?

2. Analysis of Bitcoin futures volumes from the Chicago Futures Exchange (CME).

3. Analysis of trend.

4. Analysis of Japanese candlestick.

5. Conclusions. Statistics.

1.How to make money on cryptocurrencies?

In trading, there is no strategy that ensures 100% profit. However, investors can create a portfolio of trading systems that will enable them to trade more successfully and regularly make a profit. In order to achieve this, they need to know and understand different types of market analysis and different trading approaches. We will continue to discuss different trading strategies that are sure to help speculators create various trading systems:

- Impulse Move Trading Strategy. When the quote enters a certain price corridor, there is an accumulation of positions in the market. It can be compared to the compression of a spring. Sooner or later, the spring will begin to unclench, leading to a breakdown of the range. The breakout can be the impulse from which the trader can try to get a profit. If the breakout level is correctly determined, then there is a high probability that the movement of the instrument will continue within the breakout range. With the help of this strategy, investors can use pending orders, trying to enter the market at the very beginning of the movement. The second option is to enter the market after testing again the level that was broken.

- Trend Reversal Trading Strategy. This strategy helps to determine the end of the trend. If you open long positions at the end of a downtrend, you can get the maximum profit on the reverse movement. The only problem is how to correctly identify the end of the trend. Sometimes there may be multiple breakouts of the extremes, which can lead to losses. If the end of the trend is determined correctly, then with a small Stop Loss, you can make a profit several times higher than the risks.

These strategies can be a good part of the overall portfolio of trading systems. If you want to trade multiple systems at the same time, you should use large H4-D charts.

2. Analysis of Bitcoin futures volumes from the Chicago Futures Exchange (CME).

At the weekend, the market collapsed. Perhaps the expected correction has begun. The daily volatility is high. It is necessary to trade very carefully during such periods. Beat in mind the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

15.04.21 - The level of the maximum traded volume (POC – Point Of Control) – 63170

16.04.21 – The level of the maximum traded volume (POC – Point Of Control) – 60780

POC went down. The price is below the maximum volume. The market goes into a downward movement. In this situation, you may open short positions.

3. Analysis of trend.

The second step in the analysis is to check the short-term, medium-term, and long-term trends. It is better to open positions when all three trends coincide. For trend analysis, we use an exponential moving average:

EMA 1152 (blue) shows the long-term trend on the H1 chart, which is similar to EMA 48 on the D chart;

EMA 288 (red) shows the medium-term trend on the H1 chart, which is similar to EMA 48 on the H4 chart;

EMA 48 (black) shows the short-term trend on the H1 chart.

The quote fell significantly below the EMA (48) and EMA (288), the upward movement has stopped. A sideways correction has begun. The long-term trend is still upward. Short-term medium-term and long-term trends do not coincide. Therefore, today you can open long and short positions.

4. Analysis of Japanese candlestick.

Japanese candlestick analysis is the third step in this trading system. Let's analyze yesterday's daily candlestick:

The daily candlestick closed downwards. The candlestick is black. Its low is below the low of the previous candlestick. It is a hammer candlestick pattern heading upward, large lower shadow. From the point of view of the Japanese candle analysis, it is worth considering purchases. Thus, speculators can open long positions.

6. Conclusions. Statistics.

1. Volume analysis: SELL.

2. Long-term trend: BUY.

3. Medium-term trend: SELL.

4. Short-term trend: SELL.

5. Japanese candlestick analysis – BUY.

Conclusion: On April 19, you can open both long and short positions on bitcoin in the short term as different types of the analysis show different signals.

To analyze the effectiveness of this approach, we will keep the data on completed transactions. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD.

Statement

Do not open a new trade as the market situation is uncertain.

The risk per trade is not more than 1%, this approach is conservative. 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 trading is carried out on daily charts, this recommendation is relevant throughout the day.

Trade with the trend and you will make a profit!