Crypto GiantA profitable trading strategy involves mastering a specific strategy that works in each market, using two indicators and leverage. The strategy involves identifying trends using hiking ashy candles and entering a trade when the price is above/below the 200 exponential moving average and the stochastic rsi crosses its orange line. Stop losses are set at 1.5% and take profits at 3%. It is essential to make no more than five trades per day and use the right leverage to maximize potential profits.
Mastering Profitable Trading Strategies: A Step-by-Step Guide
Introduction
Becoming a profitable trader requires mastering a specific strategy that works in the pair or market that you trade. While some strategies may be effective across all markets, most trading strategies tend to have a higher win rate in a specific market or pair. In this article, we will discuss a profitable trading strategy for futures trading in finance.
Step 1: Switch to Hiking Ashy Chart
The first step is to switch from candle to hiking ashy chart. Hiking ashy candles make it much easier to identify trends in the market. In a strong uptrend, there are two main things to look out for on the hiking ashy candles. The first is a large green body, while the second is no lower wicks on the green candles. Both of these criteria occurring together indicate a strong uptrend. Similarly, when looking for a downtrend on a hiking ashy chart, we want to look out for one large red candle bodies and no upper wicks on these candles. Both of these criteria occurring together indicate a strong downtrend.
Step 2: Add Indicators to the Chart
The next step is to add indicators to the chart. Click on the indicator button in trading view and search for EMA. Click the moving average exponential indicator, and it will be added to your chart. Then, change the length to 200 and the color to blue. You can pick any color and make the line slightly thicker. Notice on this chart that whenever the candle closes above the 200 exponential moving average, the price tends to go up, and the moving average starts acting as a support level whenever there is a pullback in the market. The same thing applies to when a candle closes below the 200 exponential moving average. The price tends to move on a downtrend, and whenever the market touches the moving average, it will act as a resistance level. For this strategy, we enter or buy long whenever the price is trading above the 200 exponential moving average, and we sell or short whenever the price is trading below the 200 moving average. The second indicator we need to add to our chart to determine our entry and exit position is the stochastic RSI.
Step 3: Use the Stochastic RSI Indicator
Click on the indicator button again and search for stochastic RSI. Click on it, and it will be added to your chart. The stochastic RSI is a technical analysis indicator used to identify market trends. It is often used to identify potential entry and exit points, as well as price reversals. Make a few quick changes to this indicator. Click on the settings to bring up the settings window and tick the box labeled background to remove the background on this indicator. Change the colors of the upper and lower bands to white, and then click on the icon next to the color and change it to a dotted line. Leave the upper band at a value of 80 and the lower band at a value of 20. Finally, we’re going to increase the thickness of the percent K and percent D line so that they are easier to see on the chart. For their inputs, we’ll be leaving them at the default values of 14 3 and 3. If you followed along, then your stochastic indicator should look something like this.
Step 4: Identify a Trending Market
The first step of this strategy is to identify a market that is currently trending using the 200 exponential moving average. This means that if we’re looking to take a buy trade, we’ll need a market that is currently above the moving average, and if we are looking to take a sell trade, we’ll need a market that is currently below the 200 moving average.
Step 5: Enter and Exit a Trade
For a long position, whenever the price closes above the 200 exponential moving average, the next thing to look for is the stochastic RSI to go oversold. Then, wait for the blue line of the stochastic indicator to cross the orange line and a bullish hiking ashy candle that is larger than the previous one. Enter your trade and take profit at 3 percent, and stop loss at 1.5 percent. Repeat the same process for an overbought signal in the stochastic indicator. After a few trades, stop trading because it’s getting riskier and riskier, and we only need to make five trades per day. The same thing applies to the sell position. Wait for the price to close below the moving average and overbought at the stochastic. The blue line crossing the orange line, and a large bearish hiking ashy candle, is the signal to enter your trade. Set stop loss at 1.5 percent and take profit at 3 percent.
Step 6: Know the Potential and Use the Right Leverage
The final step is knowing the potential and using the right leverage. As you can see, with this strategy, you can make around five to six trades per day. This strategy has the potential to turn one hundred dollars into seventy-one thousand dollars in one month. It involves using two different indicators and a 10x leverage.
Conclusion
In conclusion, becoming a profitable trader requires mastering a specific strategy that works in the market or pair that you trade. With this profitable trading strategy for future trading in finance, you can make a considerable profit within a short period. Remember to switch to hiking ashy chart, add indicators to the chart, use the stochastic RSI indicator, identify a trending market, enter and exit a trade, and use the right leverage to achieve success in trading.
