Cryptocurrency 20 Pips Bitcoin Price Range Moving Average Bitcoin Trading Strategy

Cryptocurrency 20 Pips Moving Average Bitcoin Trading Systems

The 20 pips btcusd price range moving average bitcoin trading strategy is used with the 1 Hour cryptocurrency chart and 15 minute crypto chart. On this crypto chart time frames we use the 100 and 200 simple moving average cryptocurrency indicator.

Both the 1 Hour and 15 minute crypto chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the Bitcoin trend.

The 1 Hour crypto chart time frame checks the long term direction of the Bitcoin trend, upward or downward trend, depending on the direction of the moving averages. All cryptocurrency trades taken should be in this bitcoin trend direction.

We then use the 15 min cryptocurrency chart to find the optimal point to enter cryptocurrency trades. Bitcoin trades are opened only when the btcusd price is within 20 pips range of the 200 simple MA, if btcusd price is not within this pip range cryptocurrency trades are not opened.

Bitcoin Uptrend/Bullish Market

To generate buy (bullish bitcoin trading signals) using the 20 pips moving average Bitcoin strategy, we shall use the 1hour and 15 minute crypto chart time frame.

On the 1 hour crypto chart time frame the btcusd price of the cryptocurrency chart should be above both the 100 and 200 simple moving average. We then move to a lower crypto chart time frame, the 15 min chart time frame to generate a bitcoin trade signal.

On 15 minute crypto chart time frame, when btcusd price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy bitcoin trade and place a stop loss 30 pips below the 200 Simple Moving Average. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Bitcoin volatility its best to use 30 pips stop loss.

A buy bitcoin trade can also be opened when the btcusd price touches the 100 Simple moving average, provided it’s not very far from the 200 Simple Moving Average. Normally the 100 Simple Moving Average will be within the 20 pips range of the 200 SMA.

100 and 200 Simple Moving Average Bitcoin Trading Buy Signal - Moving Average Bitcoin Trading Strategy

Bitcoin Downtrend/Bearish Market

To generate sell (short bitcoin trading signals) using the 20 pips moving average Bitcoin strategy, we shall also use the 1 hour crypto chart time frame and 15 minute crypto chart time frame.

On the 1 hour crypto chart time frame, the btcusd price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 minute crypto chart time frame to generate a bitcoin trading Signal.

On 15 minute crypto chart, when btcusd price reaches the 20 pips range below the 200 Simple Moving Average, we open a sell bitcoin trade and place a stop loss 30 pips above the 200 simple moving average.

100 and 200 Simple Moving Average Bitcoin Trading Sell Signal - Moving Average Bitcoin Trading Strategy

With this bitcoin trading strategy method btcusd price will generally bounce of these support and resistance levels because many bitcoin traders watch these levels, and open similar cryptocurrency trades at around the same point.

These support and resistance levels act as short term resistance or support levels within the btcusd price charts.

Profit Taking level for This Bitcoin Trading Strategy

With this bitcoin trading strategy the btcusd price will bounce and make a move in the direction of the original Bitcoin trend. This move will range from 60 - 70 pips.

The best bitcoin profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.