Simple Crypto trading idea - XLM/USD
I had enough.
I had used so many types of indicators and even subscribed to buy sell indicators. Lost money in most of it.
I was thinking, what if I could come up with a simple method, that could automate my thinking in buy and sell the coin.
I am too scared of using trading bots, as I don't have enough balance to put in flame. Hence this automated buy and sell is only more of a buy and sells indicator. I still need to to the trade manually.
Today is 13/7/2020 and it seems Alts are pumping. most probably we had entered alt season since bitcoin dominance had depreciated much. So for article chart settings, ill be using XLM (Stellar Lumens). Why not Chainlink? well, I missed the boat. I might as be in a smaller boat behind. Chainlink looks like a titanic now for me.
Chart settings I used.
1. XLM/USD on the 4hourly, this time frame seems to work the best for this coin with the analysis method right now.
2. 21 SMA Average - this is to identify whether the trend is moving up, down, or sideways. the 20ma could also be used as a support line if the price drops or the resistance when the price goes up.
3. RSI- is used to determine if the price is overbought or oversold. Aside from this, the RSI plays an important role in this analysis to determine the break of resistance and support.
4. Stoc RSI used together in conjunction with the RSI. When the RSI breaks the support or resistance line, the Stoc RSI is used to confirm the strength of the direction. This step is crucial, The Stoc RSI must have crossed towards the direction of the breakout. If the Stoc RSI do not agree with the direction, do not take the trade.
Buy & Sell condition
1. Buy only when the price is above 21 SMA. The same condition applies to sell. Sell only when the price is below 21 SMA.
2.Draw the support and resistance line on RSI. For the RSI chart above, I indicated the RSI support in red and resistance in green.
4. When a break of RSI support and resistance occurs, ensure the stochastic agreeing with the break and moving to the direction of the break. A cross up or down would be the confirmation.
When in a long trade, take profit should be activated once the support line for RSI break and Stoc RSI confirms the downward movement.
5.To exit or take profit, move to 30 min chart and exit at the next Stoc Rsi cross on the overbought range.
6.Always have a 2% Stop loss from the buying price.
This simple technical analysis method is a work in progress, so I might have a more refined version in the future as the price further develops. Let me know what you guys think.
I had used so many types of indicators and even subscribed to buy sell indicators. Lost money in most of it.
I was thinking, what if I could come up with a simple method, that could automate my thinking in buy and sell the coin.
I am too scared of using trading bots, as I don't have enough balance to put in flame. Hence this automated buy and sell is only more of a buy and sells indicator. I still need to to the trade manually.
Today is 13/7/2020 and it seems Alts are pumping. most probably we had entered alt season since bitcoin dominance had depreciated much. So for article chart settings, ill be using XLM (Stellar Lumens). Why not Chainlink? well, I missed the boat. I might as be in a smaller boat behind. Chainlink looks like a titanic now for me.
Chart settings I used.
1. XLM/USD on the 4hourly, this time frame seems to work the best for this coin with the analysis method right now.
2. 21 SMA Average - this is to identify whether the trend is moving up, down, or sideways. the 20ma could also be used as a support line if the price drops or the resistance when the price goes up.
3. RSI- is used to determine if the price is overbought or oversold. Aside from this, the RSI plays an important role in this analysis to determine the break of resistance and support.
4. Stoc RSI used together in conjunction with the RSI. When the RSI breaks the support or resistance line, the Stoc RSI is used to confirm the strength of the direction. This step is crucial, The Stoc RSI must have crossed towards the direction of the breakout. If the Stoc RSI do not agree with the direction, do not take the trade.
Buy & Sell condition
1. Buy only when the price is above 21 SMA. The same condition applies to sell. Sell only when the price is below 21 SMA.
2.Draw the support and resistance line on RSI. For the RSI chart above, I indicated the RSI support in red and resistance in green.
4. When a break of RSI support and resistance occurs, ensure the stochastic agreeing with the break and moving to the direction of the break. A cross up or down would be the confirmation.
When in a long trade, take profit should be activated once the support line for RSI break and Stoc RSI confirms the downward movement.
5.To exit or take profit, move to 30 min chart and exit at the next Stoc Rsi cross on the overbought range.
6.Always have a 2% Stop loss from the buying price.
This simple technical analysis method is a work in progress, so I might have a more refined version in the future as the price further develops. Let me know what you guys think.
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