Technical strategies on cryptocurrencies
- VFX Blog
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.
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.
- 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.