Crypto daily trading strategy

But, trend lines also require lots of practice and knowledge.

Tringle formation and breakout:

Moving Averages

Moving averages are one of the most basic indicators there is. Calculation is simple, the line shows the close price (could be high or low as well) average of some amount of periods. Most traders use 50, 100, 200 and 365 periods of SMA.

Moving averages are divided into simple moving averages (SMA) and exponential moving averages (EMA). SMA means that this is just an average of previous periods. EMA gives greater weight to the most recent data points.

Traders usually use more than one moving average. Crossing of two different time periods MA’s could mean a beginning of the trend.

Crypto daily trading strategy

A day trader will make multiple trades within a day, buying low and selling high within little gains that compound to large sums by the end of the day. Typically, sometimes it gets hard to perform this manually. To succeed in this strategy, you will need to consider automating your trades using trading applications or crypto trading bots like Coinrule.

Important: It is not recommended that you begin your trading journey as a day trader.
This is because this strategy’s fast-paced nature will require that you make fast decisions, and there is little room for research between trades.

Scalping (a trading strategy in which traders profit off small price changes) is a part of day trading but typically involves concise trading periods. Think minutes.

When either day trading or scalping, many trades will result in both wins and losses.

Crypto day trading strategy

However, you should ensure you’ve done plenty of research before deciding on which cryptocurrency to invest in. Once you’ve chosen a dependable crypto exchange, it’s time to deposit a starting capital and start your journey. In theory, it takes only a few dollars to invest, since most crypto exchanges have a minimum trade of $5 or $10, but you’ll still need an effective daytradingstrategyto succeed.

Crypto Day Trading Strategies

What’s the difference between trading and gambling? The answer is—an effective strategy.
Day traders devise a winning strategy fund on research with well-laid plans. Depending on your competencies and the nature of the market, you can apply different day trading crypto strategies.


Bitcoin daily trading strategy

This means the index shows previous 14 or 21 candles levels.

How to use RSI for crypto trading?

RSI in crypto trading could be used as a valuable addition in your strategy, with other indicators. It works well with MACD, as well as Fibonacci Retracement levels and others. The thing is that RSI on its own would not make the strategy.

Therefore, it is always better to use more than one indicator in your crypto trading to get more confirmations.

Bellow you can see classical signal of RSI indicator:

MACD (Moving Average Convergence Divergence)

MACD oscillator shows the relationship between two moving averages of crypto price. It is calculated by subtracting 26 period EMA from 12 period EMA.

Crypto day trading strategy reddit

As a maker, you list a potential trade on an exchange. For instance, if you want to sell your Ethereum coins, you will open a trade at a particular price point, inviting a potential buyer to fulfill your order.

  • Takers – on the other side of the equation will be the trader that fulfills the order, and these are referred to as takers. As the name suggests, these traders “take” already existing orders and fulfills them
  • Makers bring liquidity to the marketplace.

    There are makers and takers on either side of the purchase coin. There are makers for both buy and sell orders, and consequently, there are takers for both buy and sell orders.

    Bitcoin day trading strategy

    On top of this, there should be an insurance policy for extra assurity.

  • User experience. The ease of navigating a trading platform is also a big consideration, especially so for a beginner. You want to find things easily, place orders easily, and keep track of your trades more easily.
    Typically, centralized exchanges are much more user-friendly as compared to their decentralized counterparts.
  • Customer support. Even though a trading platform seems easy to use, it is also important to consider how easy it is to reach the help care desk. You can check Reddit and other relevant places to read reviews about a platform’s customer support efficiency.
  • Cryptocurrency day trading strategy

    Moving averages could be used as stop-loss or target levels as well.

    Some examples of moving averages usage in crypto trading bellow:

    SMA 100 as support level:


    What are crypto trading indicators?

    There are no specific indicators for crypto trading. Crypto market has the same market psychology as any other financial market. So, any indicator that is used for stocks, commodities or other financial instruments could be applied to crypto as well.

    Traders in crypto markets tend to use traditional indicators such as moving averages, trend lines, RSI, MACD and others.

    How to create a trading strategy?

    It is important not to forget that most indicators will not be profitable on their own.

    Bitcoin day trading strategy reddit

    Range Trading

    Range trading capitalizes on non-trending markets by identifying stable high and low prices, represented on candlestick charts as resistance and support levels. “Resistance” is a price above and “Support” is a price below the current price. When the price ranges between the resistance and support level, traders can purchase at the support level and then sell at the resistance level. Day traders using this strategy for day trading cryptocurrency buy a crypto asset when it’s oversold, and sell when it’s overbought to make profits.

    Volume is an important part of range trading since analyzing trends in volume helps validate patterns to decide if the timing is right to use a range trading strategy.

    Crypto day trading strategies reddit

    Of course, you can also sign up for market signals based on indicators recommended by other traders on TradingView.

    With technical indicators, you can trade manually within our multi-exchange trading interface. You can also run an automated trading bot like MACD or Bollinger Bands and take advantage of both technical indicators and high-frequency trading.

    Sentiment-Based Trading

    Sentiment-based trading is another popular day trading strategy, using data sourced from public information like news sources, social media media outlets, or even Google search trends to find entry or exit points for their trades.

    For example, Elon Musk tweets about Dogecoin. You could set up notifications for the moment that type of tweet goes live, with the potential of getting ahead of the game.

    Crypto day trading strategies pdf

    Nasdaq and is regulated in the United States, it is a good fit for customers who are hesitant to buy or trade crypto. Therefore, in exchange for simpler deposit and withdrawal options, you will have to pay a greater fee.

    Read our Coinbase-related guides:

    • Is Coinbase safe?;
    • Coinbase KYC guide;
    • Coinbase fees explained;
    • How to withdraw from Coinbase;
    • Coinbase review.

    Binance (for those who want to start with spot trading)

    Invest in crypto

    What we like:

    Excellent reputation

    Many deposit options

    Great customer support

    More than 500 crypto assets

    However, those traders who want to step up to manual trading can choose Binance for low fees, a variety of order types and payment options.

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