Trading on Multiple Bitcoin Charts Position Trading Strategy
Bitcoin Trading Chart Timeframes
Position Bitcoin Traders
These group of bitcoin trading are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.
Position bitcoin trader using the daily crypto chart time frame wants to go short, checks weekly crypto chart time frame, weekly crypto chart time frame looks like the one below, since weekly cryptocurrency chart shows the bitcoin trend is going down, then decides from this technical analysis it's okay to sell.
Chart Time Frames - Example of Crypto Trading Position Trade Crypto Chart Timeframes
Bitcoin Trading Position Traders using technical analysis use cryptocurrency charts to try & attempt to predict the movement of bitcoin price on the bitcoin charts.
Bitcoin Trading Position traders will sometimes use two or more crypto chart time frames so as to determine the long term bitcoin trend & short term cryptocurrency trend.
How to Define A Crypto Price Bitcoin Trend for Position Trading
Using a cryptocurrency trading system that has 3 indicators - Moving Average Crossover System, RSI & MACD & using simple rules to define the cryptocurrency trend. The trading rules are:
Upward BTCUSD Trend
Both MAs Moving Up
RSI above 50
MACD Above Centerline
Downward Bitcoin Trend
Both MAs Moving Down
RSI below 50
MACD Below Centerline
Multiple crypto charts time frames analysis equals using 2 chart time-frames to trade cryptocurrency trading - a shorter crypto chart time-frame used for trading and a longer chart timeframe to check the Bitcoin trend - chart time frames that you choose for trading bitcoin price action with will depend on the type of trader you are: for Position Traders the chart time frames used for trading will be an example of daily crypto chart time frame and weekly bitcoin chart time-frame.
Since it is always good to follow the bitcoin trend when bitcoin trading Position Trading, in Multiple Time Frame Analysis, the longer weekly crypto chart timeframe gives us the direction of the long term bitcoin trend when Position trading using the daily Bitcoin Chart Time-frame.
