Forecast based on horizontal volumes for Bitcoin on 04/29/21

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?

Novice traders want quick results. And for this they often use aggressive money management methods. What are these methods:

– Martingale,

– Averaging,

– Pyramiding,

– Locking.

All of these methods are very dangerous and a novice trader is not recommended to use them. These methods can be compared to a sports car. A professional driver can easily drive and drive a powerful car, but a novice driver is more likely to get into an accident. Likewise, with aggressive money management methods, it may seem that they help to avoid losses and quickly produce results, but one large loss can destroy all profits or even the deposit. Therefore, aggressive methods are only for experienced traders, when it already turns out to be profitable to trade with conservative money management methods, which we talked about in previous articles.

In the following articles, we will look at each of the aggressive money management methods in detail.

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

The growth of bitcoin was suspended, maybe this is a respite in the upward movement, or a correction after a big fall, only time will tell. For a trader, it doesn’t matter where bitcoin goes, the main thing is that it moves, and movements will already provide an opportunity for earning. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

04/27/21 – Maximum horizontal volume level (РОС – Point Of Control) – 55010

04/28/21 – Maximum horizontal volume level (РОС – Point Of Control) – 54410

ROS moved down, the price is below the maximum volume level. There is a downward movement in the market. In such a situation, you can sell in terms of volume analysis.

3. Analysis of the trend.

The second step in the analysis is to check the short, medium 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:

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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.

The price is on the short-term EMA and the medium-term EMA, but below the long-term EMA, the trends do not coincide. 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 high is higher than the high of the previous candle. Candlestick Configuration – Downward Hammer, Small Body, Large Upper Shadow. Selling should be considered from the point of view of Japanese candlestick analysis.

5. Conclusions. Statistics.

  1. Volumetric analysis SELL.
  2. Long term trend SELL.
  3. Medium-term trend BUY SELL.
  4. Short term trend BUY SELL.
  5. Japanese candlestick analysis SELL.
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General conclusion: 04/29/21 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 deal. 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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