Trade Bitcoin Trading

Bitcoin Signals

Traders should learn how to create signals for the Bitcoin market. A signal means a group of rules that guide when to buy or sell Bitcoin.

For example illustration, the simplest cryptocurrency trading system is the Moving Average cross over system which generates bitcoin signals once 2 MAs crossover each other.

  • Buy signal - moving averages cross over pointing upwards
  • Sell trading signal - moving averages cross-over pointing downwards

BTC/USD Crypto System

A trader needs to create a strategy and rules to confirm the signals made by this cryptocurrency system for trading purposes.

A trade strategy is a combination of two or more trading indicators & a set of written trading rules which are used to generate these signals with.

Defining What Constitutes a Bitcoin Cryptocurrency Strategy

How to Make a Bitcoin Systems

Formalizing the Rules for a Bitcoin Trading Strategy

Generating Signals

Tips for BTCUSD CryptoCurrency Strategy

Documenting Trading Activities: How to Keep a Bitcoin Trading Log

Based on the trading system outlined above, a trader can derive cryptocurrency signals by adhering to the ensuing trade rules.

Buy signal

  • Both Moving averages pointing up-ward
  • RSI above 50
  • Both Stochastics heading upward

Sell trade signal

  • Both MAs pointing downwards
  • RSI is below 50
  • Both Stochastics heading down-ward

You get an exit signal when moving averages flip to the opposite trend, or when RSI sends a signal in the opposite direction for BTCUSD. Basically, when the indicators turn, it's time to get out.

Obtain More Lessons and Guides:

Bitcoin Broker