1. How to make money on cryptocurrencies?
2. Volume analysis of BTC from Chicago Mercantile Exchange (CME).
3. Trend analysis
4. Japanese candlestick analysis
5. Conclusion. Statistics
1. How to make money on cryptocurrencies?
In order to earn on cryptocurrencies, you should trade using a proven strategy. In previous articles, we talked about trading strategy testing. What is your next step after testing? The next step is trading in the market with the help of a demo account. Every trader has an excellent opportunity to test their skills on a demo account and they should definitely use it. A demo account has the following advantages:
- Trading experience. The most favorable situation for a trader is during testing. There is no need to rush. There is time to think and make a decision. Trading on a demo account is the imitation of trading in the market. Thus, traders gain invaluable experience that will help them actually trade.
- No losses incurred. When trading on a demo account, your actions have no real consequences and you do not risk losing real money.
- No worries. Real money trading is associated with stress, fears, and greed. All this can prevent a trader from trading according to the rules of the trading strategy. Training on a demo account does not involve strong emotions and unnecessary worries. As you can see becoming a trader is a slow process.
That is why a trader should dedicate some time to trading on a demo account after testing the trading strategy. If, trade statistics coincide with the results of testing after trading on a demo account, then everything is fine and you can proceed to trading on a live account.
2. Volume analysis of BTC from Chicago Mercantile Exchange (CME)
Yesterday, bitcoin rose slightly. Today, however, it dropped during early trading. Bulls are not strong enough to significantly extend the upward trend. Other cryptocurrencies are growing in value. Perhaps it can help BTC to go up further. Let us consider the levels of the highest traded volume from the Chicago Mercantile Exchange (CME). These levels indicate the bullish market.
April 2, 2021 – the level of the highest traded volume (POC – PointOfControl) – 60,555
April 5, 2021 – the level of the highest traded volume (POC – PointOfControl) – 59,700
The POC has moved down. The price is below yesterday's level of the highest traded volume. The price is correcting sideways. According to volume analysis, you can buy and sell bitcoin today.
3. Trend analysis
Trade with the trend is one of the most reliable trading method that was used long before the digital era. In this forecast, the trend is analyzed with the help of an exponential moving average:
Long-term trend – a blue EMA 1152 on the H1 chart, which is an alternative to EMA 48 on the D1 chart;
Mid-term trend – a red EMA 288 on the H1 chart, which is an alternative to EMA 48 on the H4 chart;
Short-term trend – a black EMA 48 on the H1 chart.
The market has reversed once again. All three EMAs are heading upward. The price is above these EMAs. The upward trend is likely to resume.The long-term trend, the mid-term trend, and the short-term one are in line and heading upward. Based on trend analysis, you can enter long positions today.
4. Japanese candlestick analysis
Japanese candlestick analysis is the third step in this trading system. Let us analyze yesterday's daily candlestick:
Yesterday's white daily candlestick has closed upward. It is a Hammer candlestick pattern, headed upward. It has a long lower shadow. Today, you can enter long positions according to Japanese candlestick analysis.
5. Conclusion. Statistics
- Volume analysis – BUY/SELL
- Long-term trend – BUY
- Medium-term trend – BUY
- Short-term trend – BUY
- Japanese candlestick analysis – BUY
Conclusion: You can buy and sell bitcoin in a short term on April 6, since different types of analysis provide different forecasts and the market is flat.
Only statistics can reveal how efficient a trading strategy is. In this forecast, trades are carried out in a separate account. Trades are conducted in four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Statement:
The market is flat. Therefore, I do not open new trades today.
The risk per deal is no more than 1%. A Stop Loss is placed beyond the high/low of the day, depending on the direction of the trade. A Take Profit is not set. A Stop Loss is moved beyond the extreme points of the upcoming sessions.
Since trading is carried out on daily charts, this recommendation is relevant throughout the day.
Trade with the trend and you will generate profits!
