We would like to recall you to remember that, most of the following strategies come from stock markets. We followed strategies provided in specialized and trusted books. This strategi=y come the book “How to day trad for a living”. Many well-known traders have used these strategies and they have prouved to work. However, we, the author of this article, are not responsible for your own riks, mistakes and losses.
Moving Average Trend Trading
The Moving average trend trading strategy is usually set a 1-minutes and 5-minutes time frames:
- For Long positions (the same could be done fort short positions)
- Set a 9 Exponential Moving Average 9 (EMA)
- I a trend is established around the 9 EMA, check the previous days’ trading data (1-minute or 5-minute chart) to analyse if the cryptocurrency is responding to these moving averages.
- Buy the cryptocurrency after confirmation of the EMA as a support
- Buy as close as possible to EMA line in order to have a small stop loss.
- Set the stop loss just below the EMA or is a candelstick closes completely below the EMA
- Ride the trend until the break of the moving average
- Constantly monitor and observe the trend with your eyes
- If the cryptocurrency is moving really high away from the EMA, there is a really nice unrealized profit, take some profit (e.g., half position)
- Sometimes one can exit before the end of the moving average
- If the price pulls back to the moving average, you may add to your position and continue the trend ride.
- Experienced traders wait for a 5-minutes candlestick to completelly close above EMA before getting out (during a short position).
- A sudden break of 9 EMA with low volume may not be a good indicator of a trend comming to an end.