In this video, you will know how to trade cryptocurrency on weekends and holidays. The most known digital currencies are bitcoin, litecoin, and etherium.
Bitcoin is the most popular cryptocurrency for investment and trading. Usually, the traders apply the long-term candlestick patterns to follow the price of bitcoin. As you see in the video, the candle confirms the continuation of the downtrend. Let’s open the down-option to see how you can use the indicators and patterns during bitcoin trading. The price goes far from the opening level. The option has brought us profit, and we continue to trade.
Another popular trading cryptocurrency is etherium. Etherium shows a stable uptrend, so you can open a CALL-option. All you need is to apply indicators and to identify the entry point. Trading starts on February 8th, the level of volatility during the first week could be very high. So it is better to trade on small timeframes using standard indicators like EMA with periods of 10 25 and 50. Use the price channel to determine the direction of a trend. The breakdown will become a binary signal of a new trend.
Another method is to apply MACD. This indicator could be both as a trend indicator and as an oscillator. So it will be the final signal to open an option. Price is above MA or breaks through fast EMA 10 from down to up. The MACD is green and above zero. As for the PUT-option, we see the reverse situation. The MACD is red and it is lower than all MA’s or breaks through the EMA 10 from up to down. MACD is red and below zero. The price above all indicators confirms the up-option.
Now let’s move to the litecoin, another popular and profitable cryptocurrency. We will use two technical indicators. The Donchian channel minus the horizontal direction confirms the flat. The breakdown of center lines will be a signal for its end. If the range is wide enough, you can open options to roll back from the borders. Stochastic minus the oscillator shows us the balance between bulls and bears. We see the above 80 level is the end of an overbought uptrend. Below the 20 is the end of the oversold downtrend.
Let’s look at the CALL-option. The price rollback from the lower limit of the Donchian channel or cross its middle line from down to up. Stochastic shows the oversold level 20. And here is the PUT-option. Price crosses the Donchian channel average from up to down or unfurls from its upper limits. The Stochastic indicator is down or out of overbought level 80. The price turns upwards from the lower border of the channel. Stochastic confirms second up-option.
If you are a novice trader, wait for the moment when all conditions for your strategy will appear. Remember that they won’t appear at the same time.
We are waiting for expiration. The trade is in profit, but we don’t open the other pairs. The third option is in profit again.
As we see, it is possible to trade cryptocurrency like all the other assets, even when the market is closed. All you need is to apply the necessary indicators and create a working trading strategy.