Technical strategies on cryptocurrencies

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Bitcoin and Ethereum continue to grow in price, giving the opportunity for both speculative earnings and passive income in long-term investments. If you are a trader then how to make money on binary option on cryptocurrencies. What strategies should you use? Answer: make money on proven indicators and technical analysis strategies.

Strategy characteristics

Type: Trend.

Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.

Trading asset: Any crypto options trading signals. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time: 24 hours / 7 days a week.

Percentage premium option: Not less than 70-75%.

#1. Moving Average on Bitcoin.

We start with trend indicators. The most "classic" will be Moving Average. The strategy opens options at the Average intersection. Experienced traders can trade bounces. Auto binary signals are only on the trend, we do not trade on the flat!

The strategy uses two sets of moving averages:

• Two exponential (EMA) averages with periods 18 and 28.  Determine the direction of the medium-term trend. On the flute at high volatility can be used as a price channel, inside which you can trade (width not less than 10-15 points). The breakdown will be a binary signal of a new trend. This method is recommended only for experienced traders!

• Weighted (WMA) average with periods of 5 and 8. Assess the strength, direction of "fast" trends and show the point of opening/closing options. In the Weighted Moving Average, the last prices have the greatest weight, and therefore the reaction to their changes is faster!

Crypto trading signals:

• UP (CALL) – option. The “fast” Moving Average crosses “slow” from top to bottom or moves below the EMA;

• DOWN (PUT) – option. Reverse conditions: WMA is above the EMA or crossing them from the bottom up.

If all Moving Averages are close to each other, then this indicates a trend change. We remain outside the crypto market and wait for the next signal.

#2. Oscillator on Ethereum.

There are almost no speculative movements on Ethereum, the trend changes predictably even on lower timeframes. Only overbought/oversold oscillators can be used, but it is recommended to confirm them with trend indicators or crypto signals. Moving Average from the first strategy will do.

Two oscillators:

• Stochastic with a period of 5. The oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downtrend (oversold).  “Fast” oscillator with the first signal of a trend reversal and a new crypto option.

• Period 21 confirms the signal from the “fast” Stochastic.

• UP (CALL) – option. Two Stochastic moves down from the overbought zone.

• DOWN (PUT) – option. Opposite live trading signals: Stochastic up from the oversold zone.

• Bollinger Bands (BB) − the horizontal direction of the BB lines confirms the presence of a flat, the breakdown of the lines will be the binary signal of its end. If the range is wide enough, you can open options to roll back from the borders. This method is recommended only for experienced traders!

• Commodity Channel Index (CCI). A technical indicator that shows how far the price has deviated from its average range over the specified number of periods. If the price deviated more than the range (+100/-100 levels), we expect a trend reversal. This will be the first confirmation of the Bollinger Bands signal.

Bitcoin signals:

• UP (CALL) – option. The price is above the lower border or the middle line of the Bollinger Bands, the CCI oscillator is up or above the level of 100.

• DOWN (PUT) – option. Reverse conditions: the price is below the average or a rebound from the upper boundary of the Bollinger. CCI from level 100.

#4. Non-standard indicators for Ethereum.

Basic technical indicators work well on all cryptocurrencies, but you can improve the results using non-standard options. We look at the charts from Trading View in the vfxAlert program.

The strategy crypto signal uses two Non-standard indicators:

• MA Cross. Two Exponential Moving Averages (EMA) with periods of 9 and 21. The crossover (cross on the price chart) shows a change in the short-term trend. It is not recommended to change the basic parameters. Don't use 60 second binary trading!

• SMI Ergodic Indicator. The oscillator confirms the MA Cross signal. The price smoothes out the market "noise" using the Momentum Index algorithm, determining the strength of the trend.  Then Stochastic confirms the onset of oversold/oversold and the price reversal.

Crypto signals live:

• UP (CALL) – option. On the MA Cross, the cross is from the bottom up, the SMI Oscillator is above the zero level.

• DOWN (PUT) – option. Reverse conditions: oscillator is below zero level, crossover from top to bottom at MA Cross.

Open a trade on the next candle after best binary options signals. The time of expiration of options has to be not less than 15-20 minutes even if as a working timeframe it is chosen of 5 minutes, as in our video.

Summarize… 

The cryptocurrency market is very volatile, especially on AltCoin. The price can change within a day by 20-30%. But even in such conditions, technical analysis and best binary options signals work.  While people are trading in this market and it can be predicted. Especially for TOP-10 currencies such as Bitcoin and Ethereum.