![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/day-trading-bitcoin-768x494-1.jpg\")
<\/p>\nWith last week’s price action we updated this article to make sure you take advantage of this price action.<\/p>\n
Today’s article is about day trading cryptocurrency and bitcoin trading strategies.\u00a0You may have heard a lot about it.\u00a0There are many cryptocurrency trading strategies that promise to make you rich.\u00a0Our team at Trading Strategy Traders understands that nowadays everyone wants a piece of the pie.\u00a0That is why we have put together the best Bitcoin trading strategies PDF.<\/p>\n
We also have a complete strategy article with a list of all the best trading strategies we’ve created.<\/p>\n
Actually bitcoin is the hottest trading market right now.\u00a0It is hotter than stock trading, oil trading, gold trading and other markets at this point.\u00a0The reason people believe this will continue to be a hot market is because of blockchain technology.\u00a0This is what allows transactions to take place without a central exchange.\u00a0Here is another strategy how to draw trend lines with fractals.<\/p>\n
Bitcoin trading for profit is actually a universal cryptocurrency trading strategy.\u00a0It can be used to trade with any of the 800-plus cryptocurrencies available for trading today.\u00a0If you’re new to cryptography, it’s best to start with a brief introduction.<\/p>\n
<\/p>\n
The first thing you need to start trading bitcoin is to open a bitcoin wallet.\u00a0If you don’t have a bitcoin wallet then you can open one at the biggest wallet called Coinbase.\u00a0We have arranged a special deal for everyone who wants to get started in bitcoin to get $10 free on Coinbase.\u00a0Get $10 free by opening your Coinbase account here.<\/p>\n
Bitcoin traders are actively looking for the best solutions for trading and investing in bitcoin.\u00a0We have some of the best methods explained here in this article.\u00a0We’ve learned this bitcoin wisdom through trial and error and we’re going to show you what’s happening right now.\u00a0The method we teach does not depend on the price of bitcoin.\u00a0They can be used whether bitcoin is going up or down.<\/p>\n
<\/p>\n
![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\")
<\/a><\/h2>\n<\/p>\n
Keep in mind that there is a possibility of losing money.\u00a0Your capital is at risk when trading cryptocurrency because it is still trading at the end of the day.\u00a0We always recommend that you demo trade before risking any real money.\u00a0Also, read the volume guide.<\/p>\n
This bitcoin strategy can also be used to trade bitcoin cash as well as other cryptocurrencies.\u00a0In fact, you can use it as a trading guide for any type of trading instrument.\u00a0Blockchain technology is a big step forward for information.\u00a0Many companies are starting to develop applications to use Blockchain to support them.\u00a0Remember that when trading digital currency, it may look like it is not real currency.\u00a0But the truth is.\u00a0This is not a Ponzi scheme.\u00a0Before you buy bitcoin, have a solid plan in place and don’t underestimate the cryptocurrency market.\u00a0You must perform your technical analysis as if you would trade any other instrument.\u00a0You can also read our best Gann Fan trading strategies.<\/p>\n
One of the reasons why Bitcoin is so popular among day traders is that there are many different Bitcoin exchanges available.\u00a0Finding the best Bitcoin exchange depends on many different factors.\u00a0This includes your country of origin, payment method, fees, limits, liquidity requirements, and other preferred factors.<\/p>\n
Here are some of the top cryptocurrency exchanges on the market:<\/p>\n
A cryptocurrency is really no different than the money you have in your wallet.\u00a0They have no intrinsic value.\u00a0And cryptocurrency is just a bit of data while real money is just a piece of paper.<\/p>\n
<\/p>\n
![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/CryptoCurrency-2.jpg\")
<\/p>\n
<\/p>\n
Unlike fiat money, Bitcoins and other cryptocurrencies do not have a central bank that controls them.\u00a0This means that cryptocurrency can be sent directly from user to user without any credit card or bank acting as an intermediary.\u00a0The main advantage of cryptography is that you cannot print it like a central bank to create fiat money.<\/p>\n
When you print a lot of money, inflation increases so the value of the currency goes down.\u00a0There is a limited amount of Bitcoins.\u00a0This is true for most other cryptocurrencies.\u00a0The supply side cannot increase which makes Bitcoin less vulnerable to being affected by inflation.<\/p>\n
Now, let’s move forward and see how we can profit from cryptocurrency mania.\u00a0We will use our best Bitcoin trading strategy.\u00a0We also have training for the best short-term trading strategies.<\/p>\n
<\/p>\n
<\/a><\/h2>\n<\/p>\n
While long-term traders choose to hold their bitcoin positions for long periods of time, day traders have found that Bitcoin is lucrative for many reasons:<\/p>\n
Since Bitcoin is more volatile than a tradable asset, there will be many profitable trading opportunities that occur every day.\u00a0As with common currencies, using technical indicators will make it easier to tell when a price rally is likely to occur.\u00a0Volume, relative strength, oscillators, and moving averages can all be used for Bitcoin day trading.<\/p>\n
It is important to pay attention to technical indicators and developing trends.\u00a0In the next step, we will talk about OBV trading and how to start buying and selling cryptocurrencies.<\/p>\n
This is a cryptocurrency trading strategy that can be used to trade all important cryptocurrencies.\u00a0In fact, this is an Ethereum trading strategy just like a Bitcoin trading strategy.\u00a0If you don’t know Ethereum is the second most popular cryptocurrency (see picture below).<\/p>\n
![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/CryptoCurrency-1.jpg\")
<\/p>\n
The best Bitcoin trading strategies are 85% price action strategies and 15% cryptocurrency trading strategies that use indicators.<\/p>\n
Now \u2026<\/p>\n
Before we move forward, we must define a mysterious technical indicator.\u00a0You need this for the best Bitcoin trading strategies and how to use them:<\/p>\n
The only indicators you need are:<\/p>\n
On Balance Balance (OBV): This is one of the best indicators for day trading bitcoins.\u00a0It is used to basically analyze the amount of money flow in an instrument.\u00a0OVB uses a combination of volume and price activity.\u00a0This tells you how much money is in and out of the market.<\/p>\n
![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/Bitcoin-Trading.jpg\")
<\/p>\n
OBV indication<\/p>\n
The OBV indicator is available on most trading platforms such as Tradingview and MT4.\u00a0How to read information from the OBV indicator is quite simple.\u00a0Here you can learn how to profit from trading.<\/p>\n
<\/p>\n
<\/a><\/h2>\n<\/p>\n
In theory, if Bitcoin is traded and at the same time OBV is traded, this is an indication that people are selling into this rally.\u00a0The upward trend will not continue.\u00a0And vice versa if Bitcoin is traded and at the same time OBV is traded.<\/p>\n
![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/Bitcoin-Trading-OVB.jpg\")
<\/p>\n
What we want to see is OBV moving in the same direction as Bitcoin price.\u00a0Then, you will learn how to use this information along with cryptocurrency trading strategies.<\/p>\n
No technical indicator is 100% effective every time.\u00a0In this regard, our team at Trading Strategy Traders uses the OBV indicator with other supporting evidence to maintain our trades and get more confirmation.\u00a0The next step comes from the Ethereum trading strategy that will be used to identify Bitcoin trading.<\/p>\n
Now, before we go any further, we always recommend taking a piece of paper and a pen and note the rules of the best Bitcoin trading strategy.<\/p>\n
Step #1: Overlay Bitcoin chart with Ethereum chart and OVB indicator.<\/strong><\/p>\n Your chart setup basically has 3 windows.\u00a0One for the Bitcoin chart and the second for the Ethereum chart.\u00a0Finally, create a window for the OVB indicator.<\/p>\n If you follow our cryptocurrency trading strategy guidelines, your chart should look like the one in the figure above.\u00a0For now, everything should be fine, so it’s time to move forward to the next step of our best Bitcoin trading strategy.<\/p>\n Step #2: Finding Smart Money Differences between Bitcoin price and Ethereum price.<\/strong><\/p>\n What do we mean by this?<\/p>\n In short, we will look at the price difference between the price of Bitcoin and Ethereum.\u00a0Smart money divergence occurs when one cryptocurrency fails to confirm the actions of another cryptocurrency.<\/p>\n For example, if Ethereum price breaks above an important resistance or swing high and Bitcoin fails to do the same, we have a smart money divergence.\u00a0This means that one of these two point cryptorans is “lying.”\u00a0This is the main reason why we use this cryptocurrency trading strategy.\u00a0And Ethereum trading strategy too.<\/p>\n If you are still struggling to identify the support and resistance we receive, read our guide on this topic here: Support and Resistance Zones \u2013 The Road to Successful Trading .<\/p>\n In the figure above, we can see that the price of Bitcoin failed to break through the resistance while the price of Ethereum broke above and made a new high.\u00a0This is the first sign that the best Bitcoin trading strategy will mark the trade.<\/p>\n The reason why the smart currency split concept works is because the cryptocurrency market as a whole should move in the same direction when we are in a trend.\u00a0The same principle has been true for all other major asset classes for decades.\u00a0It is true for cryptocurrency trading strategies as well.<\/p>\n Before buying, we need confirmation from the OBV indicator.\u00a0This brings us to the next step of the best Bitcoin trading strategy.<\/p>\n <\/p>\n <\/p>\n Step #3: Look for the OVB to increase the directional trend.<\/strong><\/p>\n If Bitcoin lags behind the price of Ethereum, it means that sooner or later Bitcoin should follow Ethereum and break through the resistance.<\/p>\n But, how do we know that?<\/p>\n In short, OBV is an outstanding technical indicator.\u00a0It can show us if real money is really buying Bitcoin or if they are selling.\u00a0What we want to see when Bitcoin fails to break a resistance level or swing high, and Ethereum is already broken, is for OBV to increase in the direction of the trend.\u00a0We also want it to move above the level when Bitcoin was previously trading at this resistance level (see image below).\u00a0Here’s how to recognize the right swings to increase your profits.<\/p>\n Now, all we have left to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy.<\/p>\n Step #4: Place a Buy Limit Order at the resistance level in an attempt to catch a possible breakout<\/strong>\u00a0.<\/p>\n Once the OBV indicator gives us a green signal, all we need to do is to place a buy limit order.\u00a0Place the order at the resistance level in anticipation of a possible breakout.<\/p>\n It is not surprising to see this trade trigger and for the price of Bitcoin to break higher than expected.\u00a0After all, we told you OBV is an amazing indicator.<\/p>\n Now, all we need to determine is where to place our stop loss protection and when to take profit for the best Bitcoin trading strategy.<\/p>\n Step #5: Place your SL under the breakout candle and take profit once the OBV reaches 105,000.<\/strong><\/p>\n Placing a stop loss below a sailing candle is a smart way to trade.\u00a0We have written more about the reasons to hide your SL above \/ below breakout candles in our latest article here: Breakout Trading Strategies Used by Professional Traders.<\/p>\n When it comes to taking our profits, usually an OBV reading above 105,000 is an extreme reading that signals at least a pause in the trend.\u00a0This is where we want to take advantage.<\/p>\n Note ** The above is an example of a buy trade… Use the same rules \u2013 but in reverse \u2013 for a sell trade.\u00a0In the picture below, you can see an example of a real SELL trade, using the best Bitcoin trading strategy.<\/p>\n How to Improve This Bitcoin Day Trading Strategy<\/strong><\/p>\n Although bitcoin day trading has some risks, there are many ways these risks can be mitigated.\u00a0Here are some of the best ways to improve your Bitcoin trading strategy.<\/p>\n Remember to:<\/p>\n <\/p>\n With last week’s price action we updated this article to make sure you take advantage of this price action. Today’s article is about day trading cryptocurrency and bitcoin trading strategies.\u00a0You may have heard a lot […]<\/p>\n","protected":false},"author":1,"featured_media":3785,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[100],"tags":[],"class_list":["post-4024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategi-en"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts\/4024"}],"collection":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/comments?post=4024"}],"version-history":[{"count":3,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts\/4024\/revisions"}],"predecessor-version":[{"id":4025,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts\/4024\/revisions\/4025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/media\/3785"}],"wp:attachment":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/media?parent=4024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/categories?post=4024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/tags?post=4024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/Bitcoin-Trading-Strategy.jpg\")
<\/p>\n<\/a><\/h2>\n![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/Bitcoin-Trading-Strategy2.jpg\")
<\/p>\n![\"\"](\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/Bitcoin-Trading-Strategy5.jpg\")
<\/p>\n\n
<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"