bitcoin currency trading best bitcoin companies digital currency exchanges. Bitcoin Trading Indicators. top 5 bitcoin exchanges trade ethereum for bitcoin bitcoin trading exchanges fastest way to buy bitcoins all bitcoin exchanges top bitcoin trading sites best website to trade bitcoin trade bitcoin for usd best btc exchanges best bitcoin. Best Bitcoin Indicator- Simple Solution to Trading Bitcoin Profitably. The NEW Bitcoin Money-Maker Signal Indicator Discover this new unique trading pattern this powerful tool spots Over And Over Again with precision accuracy. you could double or Triple your account this year with these signals!-. Scalp trading (or scalping) is one such strategy. Today, we will primarily cover Bitcoin (BTC) scalping, especially given the coin’s recent rapid price changes. Such volatility provides excellent opportunities for those who engage in this kind of trading.
Bitcoin trading best indicatorsScalping Bitcoin: What is the Best Scalping Indicator? - Phemex Academy
Bollinger Bands are composed of an upper band, a moving average line, and a lower band. The two outer bands react to market price action. They expand move away from the middle band when volatility is high and contract move closer to the middle band when volatility is low. As for the top and bottom bands, these are calculated based on market volatility. If the price touches the upper band several times, it could be a sign of a significant resistance level.
Therefore, Bollinger Bands are suitable for short-term trading as you can analyze the market volatility and try to predict the movements that are likely to come. Of the Bitcoin indicators, the Moving Average indicator is used to smooth price action over a given period.
There are two types of Moving Averages; simple moving average and exponential moving average. As a trader, the MA you opt for depends on your trading style. So, if you are a short-term trader, a shorter MA is more effective for your trading style, while a longer MA is suitable for a long-term trader.
In trading, MA acts as a support or resistance. MA slopes can help a trader define a trend, and doing this is quite simple. Once you find out that the MA is sloping upwards, it means the asset is in an uptrend or gaining in price. But, if the MA is sloping downwards, then this means the asset you are assessing is in a downtrend or losing in price.
The chart below shows the slope changing towards the end, which suggests the price entering a downtrend. Therefore, a moving average slope can only help you define a trend. Moving average crossovers offer another popular trading signal. You can use only two crossovers to avoid cluttering your chart and ensure one of the moving averages MA is longer than the other.
Once you have a short-term MA and a long-term MA switched on your chart, watch out for the crossovers. This is what they mean: If the short MA crosses above the long MA, then this is a bullish trading signal. But, when the short MA falls below the long MA, then this is a bearish trading signal. See the bearish cross in the chart below and the tremendous price drop that follows. EMAs are used over regular MAs to improve sensitivity to trend changes and price momentum.
The signal line, by default, is a 9-period EMA when the signal line is combined with the MACD line, where the two lines converge, diverge and cross forms the basis for many trading signals. The zero line is the level where the MACD line is at zero. The histogram shows the distance of the MACD line from the signal line. When two oscillating lines crossover, the two common trading signals you can generate using the MACD include: bullish — where the MACD crosses over the signal line or bearish — where the signal line crosses over the MACD line.
And since these crossovers happen quite often, you could experience a lot of false positives. Therefore, you are better off combining these signals with others to generate better trading decisions. If the MACD line and signal line rise together, then this is considered a bullish sign and represents increasing positive momentum. You can use MACD to find areas of price divergence, thereby offering a trading signal.
A bullish divergence is found when the price prints a higher low while MACD prints a lower low, or the price prints a lower low while the MACD prints a higher low. Consequently, a bearish divergence is found when a price prints a higher high, and the MACD records a lower high or when the price prints a lower high while MACD records a higher high.
The chart below shows a situation where the price prints a lower low while MACD prints a higher low, indicating a trend reversal is imminent. The word Fibonacci comes from the Fibonacci sequence brought about by Leonardo Pisa, an 11th-century mathematician. The Fibonacci sequence is derived from a sum of the preceding two numbers, with each number roughly 1. This phenomenon extends even to trading when traders analyze price action.
This allows one to derive levels in a trend in which the price is likely to respect. This is achieved by dividing the peak to trough distance or trough to peak distance by the phi and other ratios in the sequence.
Forex traders enter and exit trades rather quickly. Similarly, scalpers aim to make quick profits over small price changes. Conversely, if you choose to HODL Bitcoin , you are locking up your coins inside a wallet for years in the hopes of long-term gains. When you engage in scalping BTC, you will likely trade dozens of times per day and earn thousands of dollars through small amounts over time. Considering how quickly scalpers tend to operate, they usually do not have much use for fundamental analysis.
Instead, technical analysis holds a lot more value for them. It tends to be much more precise and relevant. With technical analysis — meaning the study of charts, patterns, and predictions based on price behavior — you can develop a decent idea of whether the price will move up or down in the short term. Some of the best indicators for scalping include:. With enough experience and knowledge, you can create custom scalping indicators to gain a significant advantage over the market.
However, this is something that will likely take years and is not suitable for beginners. Developing the right strategies simply involves some research and a lot of trial and error.
Nevertheless, learning to read basic charts is a must-have skill. It will allow you to keep track of price movements in real-time while discovering noticeable patterns. Most scalpers focus on 1-hour to 1-minute charts. Considering that BTC is highly volatile, with its price moving up and down constantly, lower timeframe signals can be less reliable. Scalpers will generally use particular combinations of the indicators mentioned above to find multiple sources of confirmations for their price predictions.
Once again, with enough experience and the right strategy, all scalpers can extract actionable signals from any time frame. While Bitcoin scalping is already a trading strategy on its own, there are also multiple ways of approaching it. Basically, scalping has its own set of sub-strategies as well.
There are discretionary scalpers and systematic scalpers. As the name suggests, systematic scalpers tend to follow a meticulously defined trading system. They usually conduct thorough research and set up triggers for when to enter or exit trades. With tight conditions in place, these scalpers rely heavily on the full potential of the tools at their disposal. Ultimately, to them, the numbers are the only things that matter. Discretionary scalpers, on the other hand, tend to make decisions on the spot.
They improvise and adapt based on market behavior. Some of them may still have specific requirements regarding when to enter or exit the market, but more often than not, they simply react to the changes they witness live without following many strict rules. This strategy involves relying on trends and trend-following indicators that apply to multiple timeframes. It allows them to track trends on higher timeframes, such as 1h, 4h, or sometimes even 1-day.
Essentially, it shows a composite trend line based on a fast and a slow moving average, making it a much more responsive representation of changes. A coomon Pure Trend Scalping strategy approach involves inspecting the MESA indicator on daily and 4-hour charts to determine whether the overall trend is favorable.
Another common scalping strategy is range trading. This strategy requires you to wait for a specific price range the pattern-like bouncing of price between parallel support and resistance lines to appear. A trader can operate within that range for as long as it is not broken. Whatever you identify as the bottom of the range will act as an improvised support level, while its top acts as a resistance. This is often very lucrative for experienced scalpers.
However, there is no guarantee that it will work for everyone.