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Cryptocurrency Trading Notes > Chapter 11: Cryptocurrency Trading Strategies > Flashcards

Chapter 11: Cryptocurrency Trading Strategies Flashcards

1
Q

select a _______ Crypto exchange + currency

A

reliable

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2
Q

start by investing in currencies with high _______ caps (e.g., Bitcoin, Bitcoin Cash, Ethereum, Ripple)

A

market

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3
Q

resist _______

A

FOMO

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4
Q

set up a strategy that enables you to take profits at regular _______

A

intervals

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5
Q

use a ________ loss when you set a price at which you’ll sell a currency in the event that it decreases in value

A

stop

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6
Q

seek out project ________ that outline the functionality and goals of a particular cryptocurrency to begin doing fundamental analysis

A

white papers

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7
Q

among the best indicators include: Moving Averages, _____, TD Sequential, Williams Alligator, Ichimoku, and Stochastic Oscillators

A

RSI

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8
Q

For RSIs, the following signals apply…

A

< 30 (long signal)
> 70 (short signal)

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9
Q

RSI is used to measure the speed, change, and ________ of price movements

A

strength

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10
Q

RSI also indicates when assets are overbought or ________

A

oversold

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11
Q

EMAs are _________ moving averages

A

weighted

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12
Q

if you’re a short term trader, you can benefit more from a _______ moving average

A

short

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13
Q

long term traders or investors can benefit more from a long moving _________

A

average

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14
Q

moving averages are expected to serve as a form of _________ and support

A

resistance

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15
Q

you’ll gain a _________ resistance or support if you use a long time frame

A

stronger

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16
Q

at least ______ moving averages are required for crosses

A

two

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17
Q

one of the moving averages should _________ the other in length

A

exceed

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18
Q

a short moving average crosses above a long moving average

A

bullish trend

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19
Q

a long moving average crosses above a short moving average

A

bearish trend

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20
Q

you can also use the moving average to set a stop-loss level or plan an ______ point

A

exit

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21
Q

It’s optimal to use ________ averages along chart patterns

A

moving

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22
Q

The ________ strategy reigns supreme among cryptocurrency traders

A

MACD

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23
Q

MACDs may show you a visual representation of a _____ strength

A

trend’s

24
Q

Bollinger Bands’ ________ simple moving average can be used as a trigger for short and long signals

A

midline

25
Q

BBs are used alongside candlesticks, ______ patterns, and other technical indicators

A

chart

26
Q

the deviation lines narrow or ________ based on the significance or volatility of the price action

A

widen

27
Q

whenever the bands tighten, volatility ______ and signals a volatility surge

A

drops

28
Q

approx. _____ per cent of all price actions actually takes place within the bands

A

ninety nine

29
Q

Parabolic SAR [?] is an indicator that inserts a series of dots below or above the price action

A

Stop
And
Reverse

30
Q

Parabolic SAR focuses on the price, as well as functions as a useful trading tool since it’s a _________ indicator

A

lagging

31
Q

you’ll have to wait until the 9 buy or sell _______ becomes perfect if you choose to use it

A

signal

32
Q

when that occurs, you can take out a ________ or long trade

A

short

33
Q

very useful in calling the bottoms and tops of cryptocurrencies

A

Parabolic SARs

34
Q

if you choose to go with Bitcoin, you have to use a strategy that consists of 15% Crypto trading + _____ per cent price action

A

85

35
Q

you should ideally use the OBV (?) indicator

A

On
Balance
Volume

36
Q

OBV is specifically recommended for _____ trading Bitcoins

A

day

37
Q

_______ can help analyse the overall money flow in and out of instruments

A

OBV

38
Q

OBV makes use of a combination of price ______ + volume

A

activity

39
Q

if a cryptocurrency trades up at the same time OBV trades down, people sell into this rally, which indicates that the…

A

…upside move will not be sustained for long

40
Q

it’s essential to see the OBV going in the _____ direction as the price of Bitcoin

A

same

41
Q

First Rule of Bitcoin Trading

A

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

42
Q

Second Rule of Bitcoin Trading

A

Search for Smart Money Divergence between Bitcoin value + Ethereum value

43
Q

Third Rule of Bitcoin Trading

A

Search for the OBV to increase in the trend’s direction

44
Q

Fourth Rule of Bitcoin Trading

A

Put a Buy Limit Order on the level of resistance to catch possible breakouts

45
Q

Fifth Rule of Bitcoin Trading

A

Place a SL below the breakout candle and then take profit when the OBV reaches 105,000

46
Q

smart money divergence

A

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

47
Q

OBV displays if real money buys or sells ______

A

Bitcoin

48
Q

helpful to see the OBV increasing in the trend’s ________ if Bitcoin is not breaking above the level of resistance

A

direction

49
Q

once you receive a green signal from the OBV indicator, you must place a buy ______ order

A

limit

50
Q

this reading signifies a _______ in the trend

A

pause

51
Q

have diverse ______ among various coins

A

trades

52
Q

emphasize reduced trading _____

A

costs

53
Q

consider your ________ when planning out trading times

A

schedule

54
Q

set up notifications for new developments or news on the top ___________

A

cryptocurrencies

55
Q

begin with a profit ratio of ______

A

2:1

Cryptocurrency Trading Notes (14 decks)

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