Would you like to learn day trading Crypto Currency and make a consistent $500 per day?? We often hear about all the money you can make by day trading stocks. But what about c The Crypto concurrency market can be a very lucrative business because of the high volatility. Since the Crypto market is a relatively new asset class, it has led to significant price swings. Before day trading Bitcoin or any other Altcoins, it’s prudent to wait until we have a high reading of volatility. The good news is that even when we have a low reading of volatility relative to other asset classes, this volatility is still high enough that you can generate a modest profit on your trades Step #1: Pick up Coins with High Volatility and High Liquidity The number one choice you need to make is to pick coins that have high volatility and high liquidity. If you’re not day trading Bitcoin, which is the most liquid coin out there, and you like the Altcoins, try to pick those coins that have good liquidity and volatility. There are more than 1600 coins on the market and growing. By following only the top Crypto Currencies, you’ll reduce your area of selection. Warning!! Trading smaller Crypto currencies can also be a very lucrative business, but there are higher risks. Remember, Crypto prices can crash just as fast as they have risen. Step #2: Apply the Money Flow Index Indicator on the 5-Minute Chart. This specific day trading strategy uses one simple technical indicator, namely the Money Flow Index. We use this indicator to track the activity of the smart money and to gauge when the institutions are buying and selling Crypto Currencies. The preferred settings for the MFI indicator are 3 periods.
We’re also going to alter the default buying and selling levels from 80 to 100 and respectively from 20 to 0. Crypto Trading Indicator How to use the IMF indicator will be outlined during the next step. See below: Step #3: Wait for the Money Flow Index to reach the 100 level
An MFI reading of 100 shows the presence of the big sharks stepping into the markets. When buying, smart money can’t hide their footsteps. They inevitably leave tracks of their activity in the market and we can read that activity through the MFI indicator. Technical indicators aren’t always right, so in order to fine-tune our day trading strategy, we’ve added a few more conditions. Namely, during the current day, we need to skip the first two MFI readings of 100 and study the Crypto price reaction. The price needs to hold up during the first and second 100 MFI reading. Crypto Trading Guide If the price drops after the first two MFI 100 readings, then this suggests that most likely we’re going to have a down day. Let’s now determine the appropriate place to go buy Bitcoin and what are the technical conditions that need to be satisfied. See below: Step #4: Buy if MFI = 100 and if the subsequent candle is bullish We can now wait for the third MFI reading above 100. It doesn’t necessarily have to be the third MFI = 100 reading, you can take every other MFI = 100 readings. If your time doesn’t allow you to catch the third 100 reading on the MFI indicator, you can simply pick the next one as long as all the other technical conditions are satisfied. Next, we also need the candlestick when we got the MFI = 100 reading to be a bullish candle. The close of this candle needs to be near the upper end, giving us a candle with very small wicks. Crypto Trading This brings us to the next important thing that we need to establish when day trading Crypto Currency, which is where to place our protective stop loss and where to take profits. See below: Step #5 : Hide your protective Stop Loss below the low of the day. Take Profit during the first 60 minutes after you opened the trade.
The obvious place to hide your protective stop loss is below the low of the day. A break below it will signal a shift in the market sentiment, and it’s best to get out of the trade. This can also signal a reversal day.