Forecast based on horizontal volumes for Bitcoin as of 05/05/21

1.How to make money on cryptocurrencies?

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

3. Analysis of the trend.

4. Japanese candlestick analysis.

5. Conclusions. Statistics.

1. How to make money on cryptocurrencies?

Test your trading system, trade using conservative money management techniques, and the result is bound to be. Especially there is no need to rush if you are just starting your way in trading. Having received several stop-losses in a row, the trader begins to doubt the effectiveness of his trading system. The trader begins to think that it is better not to use stop losses at all, but to average losses by opening new deals against the trend. Let’s take a look at this aggressive money management method.

Averaging Is an aggressive method of money management, in which several trades can be opened if the price moves against an open position. Thus, the position is averaged, and the exit to profit can occur earlier.

The figure shows an example of averaging trades. First, the first buy trade is opened in the hope that the movement will continue, but the price falls. After that, a second buy trade is opened, and it also goes into negative territory. After opening the third buy trade, the price reverses and it becomes possible to close all three trades simultaneously with a profit.

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Averaging can be done with a standard lot, or with an increasing one. With an increase in the lot, the exit of a series of transactions in plus occurs faster, but the position size also increases rapidly, which means that the risks also increase. Averaging is a very dangerous money management method. You can make a profit for a long time, but lose everything in one series of trades after the start of a strong unidirectional trend. Averaging works well in a flat market, but when a trend starts, it makes a loss. Averaging should only be used by experienced traders, and only as part of a portfolio from other trading systems.

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

Bitcoin is in a sideways correction, neither rising nor falling. Maybe this is the calm before a new strong movement. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

05/03/21 – Maximum horizontal volume level (РОС – Point Of Control) – 58090

05/04/21 – Maximum horizontal volume level (РОС – Point Of Control) – 55730

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ROS moved down, the price is above the maximum volume level. Sideways movement in the market. In such a situation, you can buy and sell in terms of volume analysis.

3. Analysis of the trend.

The second step in the analysis is to check the short-term, medium-term and long-term trend. It is worth making deals when the direction of all three trends coincides. To analyze the trend, in these forecasts, an exponential moving average is used:

Long-term trend – EMA 1152 (blue) on the H1 timeframe, this is an analogue of EMA 48 on the D timeframe;

Medium-term trend – EMA 288 (red) on the H1 timeframe, this is an analogue of EMA 48 on the H4 timeframe;

Short-term trend – EMA 48 (black) on the H1 timeframe.

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All three EMAs are intertwined, the price is in the EMA area, a typical corridor movement in the market. Therefore, today you can buy and sell from the point of view of trend analysis.

4. Japanese candlestick analysis.

Market analysis using Japanese candlestick analysis is the third step in this trading system. Let’s analyze yesterday’s daily candle:

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Closing of the daily candle is down, the candle is black. The low is below the low of the previous candle. Candle configuration – Undefined. Selling should be considered from the point of view of Japanese candlestick analysis.

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5. Conclusions. Statistics.

  1. Volumetric analysis BUY SELL.
  2. Long term trend BUY SELL.
  3. Medium-term trend BUY SELL.
  4. Short term trend BUY SELL.
  5. Japanese candlestick analysis SELL.

General conclusion: 05/05/21 you can buy and sell bitcoin, as different types of analysis give different predictions.

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 in four instruments: Bitcoin, Ethereum, Litecoin, BCHUSD, which are analyzed in the same way. Statement:

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I do not open new deals in the market uncertainty.

The risk per trade is not more than 1%, this approach is conservative. Stop loss for this system is set behind the minimum or maximum of the signal day, depending on the direction of the trade. Profit is given the opportunity to grow without restrictions, since I do not set take profit. I accompany the trade by moving the stop loss beyond the extremes of new days.

Since trading is carried out on daily charts, this recommendation is relevant throughout the day.

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