cryptonium(trading strategy)
Learn how to fix the frustration of opening a position and then seeing the price immediately reverse, leading to stop-loss triggers. Use a three-indicator strategy involving the SD CPR, three SMA, and Stochastic Momentum Index (SMI) to get signals for trading. The three SMA offers four types of signals (buy, strong buy, sell, and strong sell), while the SMI gives buy and sell signals during trend confirmation. Combining SDCPR with 3SMA helps identify buy signals, and the strategy also involves taking profit targets at double the risk.
A Powerful trading strategy to Fix Reversal Signals
Introduction
For many traders, one of the most frustrating experiences is when a trading strategy signals a trade, but the price immediately reverses and triggers the stop loss. This can be a common occurrence, but it doesn’t have to be. In this article, we will explore a powerful trading strategy that can help fix this issue and boost your profits.
Using the BTC USDT 15-minute time frames, we will utilize three indicators to build a robust trading strategy. But before diving into the trading rules, let’s first take a look at the three indicators used in this strategy.
Indicator 1: SDCPR
The first indicator we will use is SDCPR, which stands for Satoshi Trades Daily Central Pivot Range. This indicator is used to analyze momentum, support, and resistance levels. To set up the SDCPR indicator, follow these steps:
– Type in “SDCPR” in the indicators list
– Select “Satoshi Trades Daily Central Pivot Range”
– Access the settings and change “Number of Daily CPR days back” to 100
– Change the “Price Line” to “Cross Foreign”
Indicator 2: Three SMA
The second indicator is Three SMA, which is a simple moving average that takes the average of the closing prices over a specified time period. It is used to identify trends and potential reversal points. To set up the Three SMA indicator, follow these steps:
– Search for “Three SMA”
– Select the indicator by Victor Grigo
– Access the settings and adjust the indicator to your liking by following the video instructions.
Indicator 3: Stochastic Momentum Index (SMI)
The third and final indicator of this strategy is the Stochastic Momentum Index (SMI), which is a momentum oscillator that measures the closing price’s relationship to the range of prices over a certain time period. The SMI is used to identify overbought and oversold conditions. To set up the SMI indicator, follow these steps:
– Add the indicator by Ander
– Adjust the settings to the following:
– Time frame: 45 minutes
– MFI source: HLC3
– MFI Length: 37
– In the style section, remove the histogram.
Trading Rules
Now that we have set up our indicators let’s take a look at the trading rules for this strategy.
Method 1: Three SMA Indicator
The first method for getting signals is by using the Three SMA indicator. This indicator gives us four types of signals: Strong Buy, Buy, Strong Sell, and Sell. To understand when this indicator signals a Buy or Sell, it’s best to watch the previous video.
– When the Three SMA indicator gives a Strong Buy signal, we open a Buy position with a Take Profit target that’s twice the risk.
– We keep a long position open until the Three SMA gives us a Sell signal.
Method 2: Third Indicator
The second method for getting signals is by using the Third indicator. When the Third indicator gives us a Buy signal and the SMA indicates an upward trend, we open a Buy position. However, we only open the position if the Three SMA confirms it.
– If the Third indicator gives a signal, we only open the position if the Three SMA confirms it.
Method 3: SDCPR and Three SMA Indicator
The last method for getting signals is to combine SDCPR with the Three SMA indicator.
– When the price breaks its own resistance and pulls back to it, we open a Buy position.
– If the Third indicator gives a Buy signal, and the price broke to the levels of the SDCPR indicator and pulled back on it, we open a Buy position.
– When the Three SMA gives us a Strong Sell signal and the price breaks the level of the SDCPR indicator, we open a Sell position with a low risk.
– If the Third indicator gives us a Sell signal, and the Candlestick and SMAs indicate a Sell signal, we open a Sell position at the level of the SDCPR indicator.
Conclusion
By utilizing these three indicators and following these trading rules, you can build a powerful trading strategy that can help prevent frustrating losses from reversal signals. Keep in mind that this strategy is not bulletproof, and there are always risks involved with trading. However, if you stick to your plan, remain disciplined, and manage your risk wisely, you’ll be on your way to greater profits.
