Crypto Price Tracker
Crypto Price Tracker is a beautiful cryptocurrency price tracker, alerts, and portfolio management app.
It helps you track prices of 1000+ cryptos from 18+ exchanges and in 32 fiat currencies. Set time-based and threshold-based price alerts. Manage your portfolio. And much more!
Available in 10 languages on the App Store.
You will see that some traders are patient and not affected by the prospect of having to wait for optimal trading conditions. But there are some others that want to see action faster; else, they forgo their positions. It is this group of traders that make up the category of momentum traders. They wait for crypto markets to gather strength to force a crypto in the preferred direction. And they want to piggyback on this momentum hoping for an extension.
But, when this move begins to lose its steam, there will be an impatient momentum trader who will be the first to abandon the ship. This explains why a momentum strategy must have proper exit rules in order to hold onto your profits and managing to ride the extension move as far as possible. This is where the 5-minute Bitcoin Momo strategy steps in. As a beginner, it might seem a bit difficult. In that case, you can opt for trading bots like Biticodes. Trading bots help you automate your trading and yield maximum profit. As for biticodes, you can run the Biticodes test to make sure the site is trustworthy for processing trades.
The 5-minute Bitcoin strategy will hunt for a momo or momentum on short-term charts (5-minute timeframes). Traders typically depend on two indicators associated with chart software packages. One is the 20-period EMA or exponential moving average and the other is the MACD or moving average convergence divergence. The EMA is preferred to simple MA since it attaches more weight to recent movements that are a must for faster momentum trades.
The 5-minute strategy must hope for a reversal trade. It will only exploit the system provided the momentum supports this reversal enough to produce an extension. This position can be left in 2 distinct segments; the first allows the trader to lock in profits while the second half allows him to catch a large move without risks.
Rules the trader must follow for long and short trades:
For the long trade, you need to search for a currency pair that is trading below 20-period EMA as well as MACD. You need to wait until prices cross the 20-period EMA and ensure that MACD has either crossed into positive territory or is on the verge of crossing to positive territory from a negative one. For a conservative trade you can place 20 pips under the 20-period EMA and for aggressive ones you can place stops on swing low in the 5-minute chart. In short trade, you need to search for a currency pair that is trading above 20-period EMA as well as MACD to stay positive. You have to the wait for prices to surpass this 20-period EMA. Here, you can place 20 pips above the 20-period EMA if you are conservative or place stop a swing high on the chart if you want to go aggressive.
This strategy is a rather robust strategy for capturing momentum-driven reversal moves. But, it may not work all the time. It may be wise to use a broker that provides charting platforms and the feature to automate entries, stop-loss orders, exits, and trailing stops. When you trade using this 5-minute strategy you need to stay aware of the trading ranges which are very wide or tight. For instance, during the quieter trading hours, prices can fluctuate around this 2-period EMA and MACD can shuttle back and forth triggering false signals. If you trade via any of the trading bots mentioned in https://coincierge.de/trading-robots/ site, you can automate the process of executing trades based on predefined rules and market conditions.
The main idea behind this strategy is to protect profits while you make profits via short momentum bursts in Forex. The strategy identifies a reversal when it happens so that you can open a position. You can then use risk management solutions to profit from this move and not jump the ship prematurely.