Trade on the weekend with Ethereum
- VFX Blog
- Strategies
On weekends, you can not only relax. The cryptocurrency market works 24 hours / 7 days, so you can get an additional profit. We will do this using the Ethereum scaling strategy on standard technical indicators.
Trading platform
Select a broker in the vfxAlert program, register by E-mail/password:
Select a demo account to test pocket option trading strategies. We always do this before placing it on a real account.
Ethereum strategy characteristics:
Type: Scalping
Timeframe: M1.
Trading asset: Any cryptocurrencies. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: 24 hours / 7 days.
Recommended expiration: 5-7 min.
The strategy uses two basic technical indicators
- Bollinger Bands (Period: 15, Deviation: 3). The indicator informs about the direction and volatility of the current trend, and the horizontal movement of the lines will show a flat - in this case, it is better to stay away from the market, especially if the price moves in a narrow channel. When the range expands sharply, the position volume by 10-15%.
- Stochastic (basic setting) − 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 downward (oversold).
- Additionally install Ethereum and Bitcoin signal panels on the Dashboard.
Scalping strategy trading signals:
- HIHGER (CALL) option. The price is above the middle Bollinger line. Stochastic up or overbought. Confirmation from Dashboard and vfxAlert.
- LOWER (PUT) option. Reverse conditions: Reverse conditions: the price is below the average Bollinger. Stochastic down or oversold. Dashboard in the Sell zone.
Example pocket option trading signals
The image shows an example of having all the strategy conditions for a Lower option.
The long second candle on the rebound from the middle Bollinger line, which works as a dynamic resistance level. Stochastic stopped after exiting oversold, high probability of a return. All additional confirmations: Bitcoin/Ethereum on the Dashboard in the Sell zone, strong downtrend on vfxAlert.
See more examples in the video:
What does OTC mean in FOREX?
When Forex exchanges close every Friday at 22:00GMT, the flow of quotes and signals stops. But, large market makers, banks and hedge funds continue to make deals with each on the OTC (Over The Counter) market.
Opened the terminal on the weekend, the trader sees how the asset price continues to move, the broker gives the opportunity to open an option. There is a desire to also take part in trading and get your part of the profit.
But before you open a deal, look at the two main problems of FOREX OTC trading:
The first is the most important - a small, compared with exchanges, the count of market participants allows you to move the price in any direction even with one transaction. It should be understood that OTC transactions do not set profit as the main goal. This may be liquidity exchange, closing of credit positions and other operations of large players. For example, in news trading, a trader on the economic calendar knows when there might be big price impulses and trend reversals. On OTC it can be at any time regardless of the previous price movement!
Second. If is impossible to predict the price movement, it means that standard technical indicators are beginning to make mistakes. Like Stochastic in the example above. A strong delay begins, and sharp up/down movements completely “break” the indicator algorithm. All signals even on the scalping trading strategy become false. There is a similar situation on candlestick patterns. Even such strong reversal patterns as "Doji" do not matter!
Let`s summarize.
To trade on the OTC market or not, everyone decides for himself. There are examples of traders who earn good profit only in this market. But, this requires a large deposit, experience and access to insider information.
Calmer and safer to use on weekends is cryptocurrency trading. Currencies from the TOP-10 have sufficient liquidity for the correct operation of technical indicators. Not only scalping works, but also intraday and medium-term strategies.