Bitcoin Buying and selling Journal: Swing Dealer Shares Easy methods to reap the benefits of Altcoin, BTC Investing

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That is the second installment of my commerce journal, together with accomplished transactions on large-scale altcoins XRP and Ether. I’ve seen that crypto buyers are at all times inquisitive about one another's positions and these conversations often happen in non-public DM's and telegram chats.

The aim right here is to supply some transparency about my commerce routine and I hope that merchants discover the method of observing each step of each commerce course. Buying and selling place sizes have been adjusted, however they’re at all times calculated based mostly on a portfolio lack of 1% utilizing the cease loss and enter as a information.

Entry: .00002769 Satoshis (sats)

Objectives: I set my first purpose .00002933 (sats), which is the primary resistance I’ve recognized for a 6% achieve. My second purpose is at .00003085 (sats), which is near the second resistor at .00003297 (sats) and yields a achieve of 11.4%. I’ve set this purpose near the primary resistor on the graph, as a result of that is an space the place the worth beforehand had a significant outage. My gross sales order is under it in case shorts are forward. In complete this might be a 19% achieve on my XRP / BTC place.

Within the occasion that the commerce goes up, I’ve positioned a cease lack of 0.00002690 (sats), which quantities to a lack of -2.85%.

It’s also good apply to think about the danger / reward ratio when investing, particularly with altcoins given the present dominance of Bitcoin. The chance-return ratio measures the distinction between the start line of a transaction and the stop-loss and gross sales or revenue order.

Evaluating these two yields the revenue / loss or reward / threat ratio. For this transaction it’s roughly 2.08 for the primary goal, Four for the second goal and 6.7 for the final goal.

9/19/19

Normal evaluation

XRP has been in a unbroken downward development for months, which I’ve shared publicly twitter and watch rigorously. The value has turned a number of ranges of help into resistance on the best way down and the primary signal of a possible backside for me is a bullish divergence. Lastly, one appeared on each the every day and weekly schedule (graphs proven under) round September 6.

XRP / BTC Weekly Graph. Supply: TradingView

Entry concepts

I recognized .00002769 (sats) as a brand new resistance space that was created on the XRP drop. My plan was to attend for this line of resistance to reverse earlier than I began a transaction as a result of I choose to commerce on confirmations. XRP prize violently broke by way of this space on September 17 and went up yet another day earlier than it fell violently when Bitcoin sharply corrected.

At this level my alarm went off once more at .00002769 (sats) on the help re-test, however the worth dropped sharply whereas Bitcoin continued to right. XRP bounced again shortly and left an extended fuse. At the moment I used to be assured to step right into a field and took the breakout again above the resistance of the following candle.

There have been three short-term targets that I used to be eager about, talked about above. The primary two had been areas of resistance that lagged behind when the worth dropped. The third was barely under the primary resistance on the graph (higher black line). I selected to set my gross sales orders barely under this level as a result of shorts are sometimes on the forefront in key areas and I wished to make it possible for my orders are full.

XRP / BTC Daily Chart. Source: TradingViewXRP / BTC Day by day Chart. Supply: TradingView

The way it labored

The primary goal was hit shortly and I selected to not shut the commerce to see if the world served as help, what it did. I set a restrict sale order for the second purpose (.00003085 sats) for half of my place, which was fired not lengthy after.

The XRP prize nearly reached my closing purpose, however ultimately created a bearish SFP above the earlier swing excessive, which was a sign for me to shut and re-evaluate. I took revenue on the remainder of my place on the earlier swing excessive on the best way again to .00003208 (sats) as an alternative of ready to see if my closing purpose would hit.

XRP / BTC Daily Chart. Source: TradingViewXRP / BTC Day by day Chart. Supply: TradingView

As well as, I seen a transparent bearish divergence on the every day chart, in addition to a hidden bearish divergence on the weekly chart. Each advised me it was time to get out whereas I used to be forward and had a revenue. On the time, Bitcoin additionally seemed fairly bullish, and my assumption was {that a} main worth change from Bitcoin might negatively affect the XRP / BTC pair.

XRP / BTC Daily Chart. Source: TradingViewXRP / BTC Day by day Chart. Supply: TradingView

The primary gross sales order yielded a revenue of 11.4% and my second order achieved a revenue of 15.8%. The entire revenue for the place was on common 13.6%.

Entry: I hope to catch the bullish consolidation outbreak at .02065 (sats)

Aim: I’ve set my purpose at .022229 (sats), which is the earlier swing excessive for a 7.6% win. A cease loss was set at 0.02044 (sats) for a possible lack of 98% and the risk-return ratio for this transaction was 7.78.

Normal evaluation

Ether is in a unbroken downward development in opposition to Bitcoin as a result of it’s at all times excessive in January 2018. The altcoin lastly confirmed a transparent reversal sign this month because it fashioned a head and shoulders sample and broke out at a peak in buying quantity.

I’ve been aggressively concerned with Ether since mid-September and my first transaction was the outbreak of the pinnacle and shoulders at 0.017976 (sats). I closed this place on the backside of the every day help at 0.021914 (sats), which represented a achieve of 23.5%.

ETH / BTC 4-hour graph. Source: TradingViewETH / BTC 4-hour graph. Supply: TradingView

Entry concepts

Though I commerce Ether in opposition to Bitcoin, the USD pair gave a stable signal of reversal. Ether Prize deeply pierced weekly demand and bounced which resulted in a lot decrease wages on a number of candles. The relative energy index (RSI) was oversold and fashioned a robust bullish divergence from Ether & # 39; s spot worth, that means that the RSI reached a better low whereas Ether & # 39; s worth reached a decrease low.

ETH / USD Daily Chart. Source: TradingViewETH / USD Day by day Chart. Supply: TradingView

In the meantime, the Bitcoin pair was cooling down after it had made a robust transfer from under and the mix confirmed indicators of consolidation earlier than a brand new upward transfer. I made a decision to play the outbreak of falling resistance, a sign to me that the buildup was more likely to finish and the worth was able to proceed the bullish motion.

That mentioned, I used to be cautious of the truth that the worth of Ether on the every day chart had already risen from oversold to overbought, so I thought of this a scalp sport.

ETH / BTC 4-hour graph. Source: TradingViewETH / BTC 4-hour graph. Supply: TradingView

The way it labored

The transaction instantly went my manner, so I made my cease loss in revenue and waited. Whereas analyzing the commerce, I visited the availability zone that was pierced at my first exit and determined to maneuver my take revenue level slightly under the stability (EQ) of the center dotted line.

ETH / BTC Daily Chart. Source: TradingView ETH / BTC Day by day Chart. Supply: TradingView

Aside from an enormous rise, I seen that the worth was more likely to be a bearish divergence with the RSI on the every day chart. I noticed this on a number of altcoins with massive hoods (together with XRP above), which supported my concept that the pump was over in the meanwhile. Bitcoin additionally seemed extremely bullish, which often has a unfavorable impact on the ETH / BTC pair.

I’m glad that I did as a result of the worth was strongly rejected on this zone and my take-profit order was fired at .022 (sats) for a pleasant revenue of 6.5%.

One factor that may be withdrawn from this expertise is that conserving a journal permits a dealer to back-test and assess candle patterns and help / resistance ranges with out bias in affirmation. This improves the power to execute and handle future transactions.

The opinions and opinions expressed listed here are solely these of the (@scottmelker) and don’t essentially mirror the opinion of Cointelegraph. Each funding and each relocation entails dangers. You could do your individual analysis when making a decision.

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