Black Pipper

Forex Dreamers

Forecast based on horizontal volumes for Bitcoin on 04/22/21.


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?

A good money management system will help you make money on cryptocurrencies. But a good money management system is just a complement to a good trading system. Therefore, until you have a profitable trading system with positive statistics traded in the real market for at least 100 transactions and several months, you should not go into more complex money management systems. And if you already have a trading system, then you can deal with money management, this will help increase profits.

What method of money management can you consider after you’ve traded a minimum, standard lot for enough time?

Multiple lots method – multiple trades, at one entry point. The essence of this method is that according to one trading signal, you open not one, but several deals, for example, two deals. The goal of the first trade is to make a profit quickly, and it can be closed after the first profitable impulse. The goal of the second trade is to stay in the trend for as long as possible to maximize profits.

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The figure shows an example of such a money management method. After the first trade is closed with a profit, the second can be transferred to breakeven and the trader is no longer risking anything. This method works well in trending markets and the cryptocurrency market is well suited for this approach. But it is important to understand that the purpose of this method is to make a profit during strong trends. While the market is flat, this method can give increased losses, but during trends they should overlap.

This money management method is conservative and can be well applied by experienced traders.

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

Bitcoin went into a sideways correction again. One candlestick is inside the other, there is no strong movement. But today the minimum of yesterday has already been broken, the downward movement may develop. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

04/20/21 – Maximum horizontal volume level (РОС – Point Of Control) – 56120

04.21.21 – Maximum horizontal volume level (РОС – Point Of Control) – 56120

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-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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The price is below all three EMAs, the trend has reversed. It is possible that the downward movement begins to develop in the market. 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:

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Closing of the daily candle is down, the candle is black. Extrema inside the extrema of the previous candle. Candle configuration – Undefined. From the point of view of Japanese candlestick analysis, it is worth considering buying and selling.

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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: 04/22/21 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:

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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 for 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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