Market Accurate
Learn how to use the RSI trend lines with breakouts and supply and demand visible range indicators to make profitable trades in bitcoin and other high-volume stocks and indexes. The strategy is suitable for both novice and experienced traders and offers clear trading rules for buying and selling. Backtesting and forward testing are essential before executing live trades, and emotional control is crucial in the face of losing trades.
trading strategy: Making Profits with Bitcoin
Introduction
Trading is all about making profits, and it is essential to have a good strategy in place to achieve success. In this article, we will be discussing an indicator-based trading system that has generated profits on Bitcoin in recent times. We have been implementing this strategy for a while and are amazed by the remarkable results it has produced. Recognizing its value and potential for success, we want to offer this strategy to our subscribers at no cost. Using these indicators will give you an advantage regardless of whether you are an experienced trader or just starting out on your trading journey. In this article, we will guide you through the setup process and explain how you can use these indicators to make a profit.
Step-by-Step Guide to the Indicator Setup
The first step in this trading strategy is to log into Tradingview and open Bitcoin’s price chart on the five-minute time frame. The trading strategy can be applied to higher time frames like 15 and 30 minutes. It is suitable for trading Bitcoin, Ethereum, high-volume stocks, and indexes. Once you’ve opened the chart, click on the indicators button and search for the first indicator, which is called RSI trend lines with breakouts by Juan Getty Foreign.
RSI Trend Lines with Breakouts by Juan Getty Foreign
This is an advanced tool that provides traders with a visual aid for finding RSI breakouts. Similar to how you use trend lines on your charts, using them on the relative strength index can also give you a sense of direction in the markets. In this script, a pivot-based system is used to monitor real-time swing levels and trigger a new pivot event after each dip or all-time high. When the RSI line breaks above the trend line, the indicator prints a buy label, and a sell label is printed when the RSI breaks below the trend line. Among the indicator settings are two modes: repainting and non-repainting. Setting a non-repainting mode is recommended. This will ensure that buy and sell signals appear after a candlestick closes. We also have the option to apply the indicator to a different time frame. For example, the current time frame is five minutes. We can set the indicator to a 15-minute time frame to smooth out market noise. It is also recommended to set the look-back range higher. This will affect the quality of the signals issued. Let’s set this number to eight to make the indicator more visible. We can also adjust the line colors. RSI trend lines with breakouts can be used with multiple additional tools. This is to reduce the number of false breakouts and increase the win rate of the indicator.
Supply and Demand Visible Range by Lux Alga
We found an indicator that matches perfectly with RSI. This tool is called Supply and Demand Visible Range by Lux Alga. The Supply and Demand Visible Range is a non-repainting indicator that helps traders identify key levels of support and resistance in the market. It does this by displaying supply and demand zones in a visible range. The cool part about this indicator is that it adjusts the levels depending on how you’re looking at the price chart. You see, regular supply and demand indicators draw multiple key levels, making the chart look cluttered. We can tell from our experience that the less noise you have on a price chart, the better. The supply and demand visible range indicator also displays price equilibrium. The equilibrium price is the price at which an asset like a stock, commodity or cryptocurrency settles after all buying and selling pressures have been accounted for. It’s essentially the point where demand and supply curves intersect in a price volume graph. Significant deviations from the equilibrium price can signal potential trend reversals. For instance, if a security’s price rises significantly above the equilibrium, it could be considered overbought, suggesting a potential pullback. Conversely, if it falls significantly below it might be seen as oversold, indicating a potential rally. The indicator settings will remain default. If you want to make the range narrower, you can do so by changing the threshold percentage to a higher number.
Benefits of Using Supply and Demand Visible Range Indicator
The most obvious benefit of using the Supply and Demand Visible Range indicator is that we see where market players have the most interest in purchasing or selling the security. In an uptrend, when the price approaches the supply level, market participants close their long positions. Additionally, new sellers enter the market anticipating a price correction in the near future. As a result, the pressure of supply outweighs demand, pushing the price down. Since we already have a buy/sell indicator on our chart that tells us exactly at what price we should open a trade, we no longer have to guess and rely on emotions. We simply open a short position at the close of the price bar and target two times the risk. The demand zone can also be an excellent target. The stop loss should be set just above the supply zone. Let’s take a look at another short example here. The price was moving in a strong upward direction until it reached the supply zone. The momentum started to slow down as buyers closed their positions. The RSI trend line was broken to the downside, which was confirmed by a sell label. We followed the rules and sold at this price. The trade resulted in a profitable outcome. In a downtrend, when the price approaches the demand level, a reversal is very likely to happen. We should look out for signs of a possible trend reversal. If we can identify these signs in advance, we can enter the market at the right time and increase our chances of success. The main sign you should look out for is a bullish breakout on the RSI indicator. Open a long trade once the signal is confirmed with a target of two times the risk. Set the stop loss below the demand zone. This strategy works perfectly in all market conditions. It doesn’t matter if the market is ranging. You won’t receive a valid trade entry anyway as the price is usually in the equilibrium zone. You will receive a signal only when the price extends sharply to the upside or downside. Thus, it’s a great strategy to use when the market is trending. It guarantees that you enter the trade in the right direction, allowing you to profit from the trend’s momentum. You can also use it as a counter-trend strategy when the price reaches an extreme point.
Conclusion
You don’t have to be an expert to make good profits from trading. All you need is an easy-to-follow trading strategy with clearly defined rules in place. You need to know with 100% confidence when to buy and sell the stock. This trading strategy has only two rules to follow, which makes it suitable for beginners as well. You simply buy at supply and sell at demand. The RSI will give you extra confirmation to place an order if the price retests one of these key levels, but the RSI doesn’t issue a signal. Wait for a new retest. Do not enter a trade if the price has significantly moved away from the key level. Your goal is to enter a trade at the best price possible. Trading psychology also plays a major role in success in trading. Therefore, it is important to remain patient and wait for the best time to enter a trade. Keeping an eye on the RSI can help you identify the best entry points, allowing you to maximize your profits and minimize your losses. It is important to maintain emotional control, even in the face of losing trades, as this is a normal part of trading. There is no strategy or approach that guarantees a win every time. That is why it is crucial to thoroughly backtest and forward test your trading strategy before executing live trades. As you can see, it works pretty well, so give these indicators a try, but be sure to backtest and forward test them before trading live.
