«Picker» Trading Strategy Based On Trend Indicators

We keep publishing the articles series describing highly efficient systems of trading forward off-exchange contracts on assets of cryptocurrency market. Today we offer for you  the system designed on the integrated use of trend and oscillator indicators capable to estimate short term trend moods of digital coins price behavior. The users of this trading system will be able to estimate the cryptocurrency market right (truth about cryptocurrency) and get the capital growth of at least 200% within a week as a result. Besides the system is notable for formalized signals and simple use, which is very good for trading newcomers.

 

Strategy forecasting services

Well, for the stable right forecasting the cryptocurrency assets price behavior we need the following list of indicator resources:

  • MMAR (Madrid MA Ribbon) –the system algorithm of this analysis tool evaluation is based on the evaluation principle of asset quotations by Moving Average set. Such technical analytical method allows accurate estimation of the market trend behavior in the most wide time диапазоне. Thus the accuracy of the system increases  positively related to the amount of the averages applied to the analysis.
  • CM_Stochastic_MTF – is more technological derivative  of the standard oscillator which lets you evaluate the minimal technical bouncing of asset market. So we not only get the highly accurate trading signal, but also filter the false signals of the strategy.
  • OBVOSC_LB (On Balance Volume Oscillator) – is the additional oscillator with evaluation tool for the trend movement direction and strength considering the trade value necessary for the intermediate trends evaluation, as well as additional filter service.

The purpose of the strategy indicator pattern adjustment is getting the cryptocurrency asset of such marking on the liquidity chart:

«Picker» trading strategy based on trend indicators

As you can see, for the demonstration we use the chart from tradingview.com. The matter is that this professional resource let us work with the huge list of analysis indicator means, as well as use any financial tool in the liquidity chart. Besides, working on the external technical service makes the trading system maximally universal in respect of choice of the trading platform for trading derivatives contracts. Thus we recommend you to use this information resource for the analysis.

 

Strategy signals

To open trade contracts UP, use the following set of signals:

  • OBVOSC_LB service trend line shows the strong ascending trend, shaped from the negative scale zone,
  • MMAR moving bunch after the convergence turned to grow and discolored to green by that,
  • Dynamic lines of CM_Stochastic_MTF oscillator crossed the scale median up.

«Picker» trading strategy based on trend indicators: How to buy contracts UP?

To open trade contracts DOWN, use the following set of signals:

  • OBVOSC_LB service trend line shows the strong descending trend shaped from the positive scale zone,
  • MMAR moving bunch after the convergence turned to grow and discolored to red by that,
  • Dynamic lines of CM_Stochastic_MTF oscillator crossed the scale median down.

«Picker» trading strategy based on trend indicators: How to buy contracts DOWN?

 

Expiration

The equation of contract settlement shall be carried out considering the time frame chosen for the analysis, as well as current level of cryptocurrency market volatility. As standard trade conditions we suggest to carry out trading on a minute period of the chart with the average asset volatility. In such conditions we apply trading positions, which settlement will happen within the range from 5 minutes to 15 minutes. In this mode we can efficiently work out the strategy signals and get maximum gainful contracts.

 

Money management

You can’t escape losses applying any technical strategy, this method can’t be an exception. To make your trading results stable, with high dynamics of cumulative gain, you need to use contracts with the limited price value. Applying trade positions with the price level up to 5% of the transaction sum will be optimal to keep your deposit safe. Trading this way you can be relatively safe getting your profit in the cryptocurrency market.


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