We would like to let you know that, most of the following strategies come from stock markets. We followed strategies provided in specialized and trusted books. This strategy comes from 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.
Green-to-Red trading is similar to Red-to-Green except for the direction of the trade.
The previous day close is a powerful level of support or resistance and traders must trade toward it when there is rising volume.
If the current price of the cryptocurrency is higher than the previous day close, the market is moving from a Green day to a red day, this is a Green-to-Red move.
The Support or Resistance Trading is usually set a 5-minutes time frames:
- Monitor the price action around the previous day close.
- If the cryptocurrency moves toward the previous close with high volume, consider going long with the profit target of the previous day close.
- The stop loss should be near a technical level. If you buy near VMAP, your stop loss should be the break of the VMAP. If you buy near a moving average or an important resistance level, your stop loss should be the break of the moving average or support level.
- Sell at the target profit.
- Remember, if the price moves in your favor, bring your stop loss to the break-even and do not let the price turn against you.
- A similar approach will also work for green-to-red trading