Black Pipper

Forex Dreamers

Forecast based on horizontal volumes for Bitcoin

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?

There is no system – “Grail” – capable of earning consistently and always. But you can build a portfolio of trading systems that can trade more consistently and regularly generate profits. To do this, a trader needs to know and understand different types of market analysis and different trading approaches. Let’s continue to consider trading approaches, on the basis of which you can create different trading systems:

– Impulse trading. While the price is in the channel, the position is accumulating. This can be compared to the compression of a spring. But sooner or later, this spring will begin to expand, and a range breakdown will occur. And this breakout can be the impulse, the profit from which the trader can try to get. If the breakout point is correctly determined, then there is a high probability of continued movement in the direction of the breakdown. In such systems, traders can trade using pending orders, trying to enter the movement at the very beginning. The second option is to enter, after retesting the level that has been broken.

– Trading reversal. This approach is based on trying to determine the end of a trend. If you enter to buy at the end of a downtrend, you can get the maximum profit on the reverse movement. The only problem with this approach is how to correctly determine the end of the trend. Sometimes, multiple updates of extremes can occur, which can lead to losses in this approach. But if the end of the trend is determined correctly, then with a small stop loss, you can get a profit several times higher than the risks.

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These approaches can be a good part of the overall portfolio of trading systems. In order for a trader to trade several systems at the same time, he needs to trade on large H4-D timeframes.

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

The market crashed over the weekend. The expected correction may have begun. Daily volatility is huge. Trading during such periods should be extremely careful. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

04/15/21 – Maximum horizontal volume level (РОС – Point Of Control) – 63170

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

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 price dropped significantly below the EMA (48) and EMA (288), the upward movement is broken, the market is in a sideways correction. The long-term trend remains upward for now. Short-term, medium-term and long-term 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:


Closing of the daily candle is down, the candle is black. The low is below the low of the previous candle. Candlestick configuration – Hammer pointing up, large lower shadow. From the point of view of Japanese candlestick analysis, it is worth considering buying.

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5. Conclusions. Statistics.

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

General conclusion: 04/19/21 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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