In this article we will show examples of our swing trading system and rules for trading any of the top 10 crypto currencies like Bitcoin BTC, ADA, or ETH. The same system and rules apply to any high liquidity crypto currency with active markets.
Basic System Rules are as Follows:
Set up your charts using this chart setup below on the Binance charting plat form or equivalent. Any crypto currency charting platform will work as long as thes time fames whown below are available. The moving averages shown in the images are a single EMA and the settings are shown below from the Binance platform “Trading View” setting.
Cryptocurrency Moving Averages
If you want to buy a particular crypto currency pair or perpetuals make sure the pair cycles down on at least the H2 time frame, then stalls at support. If you want to sell a particular crypto currency pair wait until the pair cycles up on at least the H2 time frame, then stalls at resistance. This is your chart setup, you can also use any higher time frame H4 or higher.
When the reversal back up starts and the price crosseds the H2 or higher going up check the overall market for buy momentum, We have a live heatmap for market momentum entry confirmation. By letting a crypto currency sell off before buying eliminats alot of risk. Risk can be further reduced by entering the trade with full market momentum backing the entry. See our live heatmap tool below.
This simple method works but requires some patience. If it effective for works for almost all high liquidity cryptos. If you analyze several ofthe major crypto currencies first then check your crypto currency of interest many times the market is moving in tandem.
Bitcoin BTC H2 TIme Frame Chart
In this example above BTC cycled down on the H2 time fame and is setting up for a buy, you could set a price alert above the breakout point then look for strong market momentum to confirm the buy.
Bitcoin BTC H6 Time Frame Chart
In this example above BTC has cycled down on the H6 time frame, setting up for a buy. Once again set a price alert for a breakout and check for full crytp market momentum at the point of entry.
Cardano ADA H4 Chart Setup
In this example above ADA Cardano has cycled down on the H4 time frame and is setting up for a reversal. You can set a price alert at the breakout point then check our live heatmap tool for crypto market momentum verification.
To verify the buy entry look for full market momentum on our heatmap tool, we have live heatmaps for gold, 8 currncies, and crypto currencies.
By using the crypto market momentum as your verification, this allows you to move your stop order to breakeven and manage a profitable crypto trade with a break even stop.