Cryptocurrency 20 Pips Bitcoin Price Range Moving Average Strategy
Cryptocurrency 20 Pips Moving Average Bitcoin Trading Systems
The 20 pips bitcoin trading price range moving average bitcoin trading strategy is used with the 1 Hour cryptocurrency chart and 15 minute crypto chart. On this crypto chart time frames we use the 100 and 200 simple moving average bitcoin technical technical indicator.
Both the 1 Hour and 15 minute crypto chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the Bitcoin trend.
The 1 Hour crypto chart timeframe checks the long term direction of the Bitcoin trend, upward or downward trend, depending on the direction of the moving averages. All cryptocurrency trades taken should be in this bitcoin trend direction.
We then use the 15 min cryptocurrency chart to find the optimal point to enter cryptocurrency trades. Bitcoin trades are opened only when the bitcoin trading price is within 20 pips range of the 200 simple MA, if bitcoin trading price is not within this pip range cryptocurrency trades are not opened.
Bitcoin Uptrend/Bullish Market
To generate buy (bullish bitcoin trading signals) using the 20 pips moving average Bitcoin strategy, we shall use the 1hour and 15 minute bitcoin trading chart timeframe.
On the 1 hour crypto chart time frame the bitcoin trading price of the cryptocurrency chart should be above both the 100 and 200 simple moving average. We then move to a lower crypto chart time frame, the 15 min chart time frame to generate a bitcoin trade signal.
On 15 minute crypto chart time frame, when bitcoin trading price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy trade and place a stop loss 30 pips below the 200 Simple Moving Average. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Bitcoin volatility its best to use 30 pips stop loss.
A buy trade can also be opened when the bitcoin trading price touches the 100 Simple moving average, provided it’s not very far from the 200 Simple Moving Average. Normally the 100 Simple Moving Average will be within the 20 pips range of the 200 SMA.
100 and 200 Simple Moving Average Bitcoin Trading Buy Signal - Moving Average Strategy
Bitcoin Downtrend/Bearish Market
To generate sell (short bitcoin trading signals) using the 20 pips moving average Bitcoin strategy, we shall also use the 1 hour crypto chart time frame and 15 minute bitcoin trading chart timeframe.
On the 1 hour crypto chart time frame, the bitcoin trading price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 minute crypto chart time frame to generate a bitcoin trading Signal.
On 15 minute crypto chart, when bitcoin trading price reaches the 20 pips range below the 200 Simple Moving Average, we open a sell trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple Moving Average Bitcoin Trading Sell Signal - Moving Average Strategy
With this bitcoin trading strategy method bitcoin trading price will generally bounce of these support and resistance levels because many traders watch these levels, and open similar cryptocurrency trades at around the same point.
These support and resistance levels act as short term resistance or support levels within the bitcoin trading price charts.
Profit Taking level for This Strategy
With this bitcoin trading strategy the bitcoin trading price will bounce & make a move in direction of the original Bitcoin trend. This move will range from 60 - 70 pips.
The best bitcoin profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.
