Oct 05, · Swing trading also allows you to live a life that’s not always behind the computer. Typically, swing traders will make one trade every 1–3 days, Author: Crypto Account Builders. Swing trading strategies differ considerably from day trading strategies. However, some of the mentioned strategies can be used by day trading beginners as well. Recognize that no matter how reliable a setup is, there can be such thing as a "black swan event," or simple bad luck that turns things around against you. Sep 21, · Swing Trading ‘A Good Approach’ When polled by Bitcoin Market Journal, several market analysts spoke in favor of using swing trading for bitcoin. “I think swing trading is a good approach for [bitcoin] trading,” said Petar Zivkovski, COO of leveraged digital currency platform Whaleclub.
Bitcoin swing trading strategyHow to Use Swing Trading for Bitcoin - Bitcoin Market Journal
Swing trading can be very helpful, providing you with greater flexibility and an opportunity to profit from short-term price trends. To maximize your chances of success, be sure to follow simple strategies like following trends, paying close attention to the latest news developments and managing risk effectively.
Since bitcoin trading can be a complex endeavor, be sure to conduct significant due diligence before making any trades. For more valuable information about bitcoin investment strategies, subscribe to Bitcoin Market Journal. Bitcoin Market Journal brings you hot investment tips from the best minds in bitcoin, altcoins, and ICOs.
Straight to your inbox. Swing Trading Basics This approach, which involves holding positions for as little as overnight and for as long as several weeks, is a great way to take advantage of trends in the market. Tips for Swing Trading As for specific tips, analysts offered a handful of suggestions. Summing It Up Swing trading can be very helpful, providing you with greater flexibility and an opportunity to profit from short-term price trends.
Step by Step, With Photos. Cryptos are volatile. There is nothing worse being up nicely on a position, and then having it reverse on you and turn into a loser. This will allow you to realize some profit, but still in a position to capture a bigger move if it continues to trend. Learn more about my favorite trading strategies I use for cryptos here. Cryptos will often pullback and retest former resistance levels after breaking out. When swing trading crypto, it is best to wait for a pullback after a breakout or anticipate the breakout instead of buying at the breakout level.
Usually, the algos in the crypto markets will try to shake you out once a breakout starts, so it is best to wait for a pullback so you can get lower prices and get a lower risk trade. The volatility in the crypto markets allows you the potential to make huge returns in very short periods of time. However, if you are in losing trades and average down you put your trading account in huge jeopardy. Blindly averaging down on losers never works in the long run.
Instead of making your losers smaller, it makes them larger. I am a big advocate of moving profits into a hardware wallet. Even the biggest exchanges can get hacked occasionally. You do need crypto on the exchange to trade actively. The crypto markets are finally seeing momentum and trend after months of a choppy, range-bound market. There are amazing opportunities in the market every week.
If you are interested in joining the biggest community of crypto traders, check out our trading community Cryptostreet.
Bulls on Crypto Street is a trading education website dedicated to cryptocurrencies. It has got the advantage that it is mostly based on chart patterns which can be detected without a great lag.
Thus it avoids a lot of the problems that indicator based strategies face due to the lagging of indicators. Swing points are the local highs and lows of the market. Have a look at the chart below and you will see how useful this simple definition can be. I did not mark all swing points — can you find the missing ones? Swing High: a high with a lower high on the left and right, Swing Low: a low with a higher low on the left and right. If the daily swing points show too much noise, just switch to a higher time frame and apply the same technique on weekly or monthly charts.
You could also stay on the daily chart and build second order swing points. Then a 2nd order swing high would be defined as a swing high which is surrounded by lower swing highs. Remember, it is a trend following trading technique, and so some kind of trend definition is needed.
Otherwise you are buying high and selling low in a sideway market — and this would kill you within a few trades. One way to tackle this problem would be to observe the position of the swing points against each other. Remember Dow theory: an uptrend is defined by rising highs and rising lows. So you could define the buy signal as follows: buy, if the market trades above the last swing high AND the last swing low is above the swing low before.
Another way to solve the problem would be to use some kind of trend filter. For the strategy shown in and over here I use two moving averages. Therefore I calculate 2 moving averages which will later be used for detecting the trend.
In I used a 54 and a 21 day average:. The trend detection and the entry signal long is quite straight forward and consists of three conditions:. If all three conditions are true the strategy buys as soon as the previous swing high is touched or broken.