Simple Trading Strategies for cryptocurrency in 2022 : The Bull Flag Momentum

Most of the following strategies come from stock. 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.

The Bull Flag Momentum

This strategy requires a good and rapid trading platform.

Example of Bull Flag formation with one consolidation period.

How to enter the trade

  • Set the chart too 1, 3 or 5-minutes intervals.
  • When a price surges up, wait until the consolidation period (be patient).
  • Don’t chase the stock
  • As soon as prices are moving over the high of the consolidation candlesticks, enter the trade.
  • The stop loss must be the break below the consolidation periods.
  • Sell half of your position and take proit on the way up.
  • Bring your stop loss from the low of the consolidation to your entry price (breakeven).
  • Sell the remaining positions as soon as your target hits or when the price is losing steam and the sellers are gaining control.

Advices

  • Do not short a bull flag
  • Good traders know that it is risky to enter a trade when the price is increasing significantly. That’s called “chasing the stock”.
  • Amateurs jump in or out when stocks begin to run, be carefull.
  • Scalpers rarely like to buy during consolidation (during that waiting and holding phase). This usually drop quickly and brutally so it is important to jump in only when there is a confirmation of breakout.
  • Waiting for the break out is a way of reducing your risk.
  • Scalpers get out quickly.

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