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Forecast based on horizontal volumes for Bitcoin on 04/20/21

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?

The first step is to build your own portfolio of trading systems. But in addition to various trading systems, it is important to think about competent capital management or money management. The importance of capital management is often underestimated by novice traders. At the beginning of their journey, all traders are focused on the trading system, when to buy and sell. And money management undeservedly remains in the shadows. But competent trading consists of three equal parts:

– trading system,

– capital Management,

– risk management.

Money management is responsible for choosing the size of the position on each new trade. That is, the main task of capital management is the choice of a trading lot. The lot should be selected in such a way as to maximize profits with minimal risks.

When choosing money management for your trading system, it is important to consider the seriality of financial markets. A trader can receive a series of winning trades, and then a series of losing trades. And the lot should be selected in such a way that too large drawdown does not form on the deposit during a series of unprofitable trades.

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How to choose a money management system for your trading system?

This choice should not happen by chance, and who likes what. It is possible to correctly choose a money management system only on the basis of:

– testing,

– statistics.

When data on trades of a trading system is collected, it is possible to simulate trading with different capital management methods. And after that, choose the most profitable method with small drawdowns.

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

There is a reversal in the market. Maybe we will now see a downward rally similar to the upward rally. So it is important to trade very carefully, with clear stop losses, as there can be false movements in different directions. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

04.16.21 – Maximum horizontal volume level (РОС – Point Of Control) – 60780

04/19/21 – Maximum horizontal volume level (РОС – Point Of Control) – 56515

RUS fell down, the price was below the maximum volume. The market is going down. In such a situation, you can sell in terms of volume analysis.

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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:

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 long-term trend that has been on the market since October 2020 is breaking down. The price dropped below the short-term, medium-term and long-term EMAs. Short-term, medium-term and long-term trends are the same. Therefore, today it is possible to 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:


Close of the daily candle at the opening location. Extrema inside the extrema of the previous candle. Candle configuration – Doji, long shadows, no body. From the point of view of Japanese candlestick analysis, buy and sell should be considered.

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5. Conclusions. Statistics.

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

General conclusion: 04/20/21 it is possible to buy and sell bitcoin for the short term, since 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:


I don’t open new deals, there is uncertainty in the market.

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.

Trade with the trend and you will be in the black!

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Source: InstaForex

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