Chapter 11: Cryptocurrency Trading Strategies Flashcards
select a _______ Crypto exchange + currency
reliable
start by investing in currencies with high _______ caps (e.g., Bitcoin, Bitcoin Cash, Ethereum, Ripple)
market
resist _______
FOMO
set up a strategy that enables you to take profits at regular _______
intervals
use a ________ loss when you set a price at which you’ll sell a currency in the event that it decreases in value
stop
seek out project ________ that outline the functionality and goals of a particular cryptocurrency to begin doing fundamental analysis
white papers
among the best indicators include: Moving Averages, _____, TD Sequential, Williams Alligator, Ichimoku, and Stochastic Oscillators
RSI
For RSIs, the following signals apply…
< 30 (long signal)
> 70 (short signal)
RSI is used to measure the speed, change, and ________ of price movements
strength
RSI also indicates when assets are overbought or ________
oversold
EMAs are _________ moving averages
weighted
if you’re a short term trader, you can benefit more from a _______ moving average
short
long term traders or investors can benefit more from a long moving _________
average
moving averages are expected to serve as a form of _________ and support
resistance
you’ll gain a _________ resistance or support if you use a long time frame
stronger
at least ______ moving averages are required for crosses
two
one of the moving averages should _________ the other in length
exceed
a short moving average crosses above a long moving average
bullish trend
a long moving average crosses above a short moving average
bearish trend
you can also use the moving average to set a stop-loss level or plan an ______ point
exit
It’s optimal to use ________ averages along chart patterns
moving
The ________ strategy reigns supreme among cryptocurrency traders
MACD
MACDs may show you a visual representation of a _____ strength
trend’s
Bollinger Bands’ ________ simple moving average can be used as a trigger for short and long signals
midline
BBs are used alongside candlesticks, ______ patterns, and other technical indicators
chart
the deviation lines narrow or ________ based on the significance or volatility of the price action
widen
whenever the bands tighten, volatility ______ and signals a volatility surge
drops
approx. _____ per cent of all price actions actually takes place within the bands
ninety nine
Parabolic SAR [?] is an indicator that inserts a series of dots below or above the price action
Stop
And
Reverse
Parabolic SAR focuses on the price, as well as functions as a useful trading tool since it’s a _________ indicator
lagging
you’ll have to wait until the 9 buy or sell _______ becomes perfect if you choose to use it
signal
when that occurs, you can take out a ________ or long trade
short
very useful in calling the bottoms and tops of cryptocurrencies
Parabolic SARs
if you choose to go with Bitcoin, you have to use a strategy that consists of 15% Crypto trading + _____ per cent price action
85
you should ideally use the OBV (?) indicator
On
Balance
Volume
OBV is specifically recommended for _____ trading Bitcoins
day
_______ can help analyse the overall money flow in and out of instruments
OBV
OBV makes use of a combination of price ______ + volume
activity
if a cryptocurrency trades up at the same time OBV trades down, people sell into this rally, which indicates that the…
…upside move will not be sustained for long
it’s essential to see the OBV going in the _____ direction as the price of Bitcoin
same
First Rule of Bitcoin Trading
your chart setup must consist of three windows to represent each of the three charts: first for Bitcoin, second for Ethereum, third for OBV indicator
Second Rule of Bitcoin Trading
Search for Smart Money Divergence between Bitcoin value + Ethereum value
Third Rule of Bitcoin Trading
Search for the OBV to increase in the trend’s direction
Fourth Rule of Bitcoin Trading
Put a Buy Limit Order on the level of resistance to catch possible breakouts
Fifth Rule of Bitcoin Trading
Place a SL below the breakout candle and then take profit when the OBV reaches 105,000
smart money divergence
results when one cryptocurrency acts against another cryptocurrency; typically means that there’s an inconsistency between the two cryptocurrencies or one of the coins delivers false results
OBV displays if real money buys or sells ______
Bitcoin
helpful to see the OBV increasing in the trend’s ________ if Bitcoin is not breaking above the level of resistance
direction
once you receive a green signal from the OBV indicator, you must place a buy ______ order
limit
this reading signifies a _______ in the trend
pause
have diverse ______ among various coins
trades
emphasize reduced trading _____
costs
consider your ________ when planning out trading times
schedule
set up notifications for new developments or news on the top ___________
cryptocurrencies
begin with a profit ratio of ______
2:1
