Cryptocurrency 20 Pips Bitcoin Price Range MA Strategy
Cryptocurrency 20 Pips Moving Average Bitcoin Systems Strategies
The 20 pips bitcoin price range moving average bitcoin strategy is used with the 1 Hour cryptocurrency chart and 15 minute chart. On this chart time frames we use the 100 and 200 simple moving average bitcoin indicator.
Both the 1 Hour and 15 minute 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 chart timeframe checks the long term direction of the Bitcoin trend, upward or downward trend, based on the direction of MAs. 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 bitcoin price is within 20 pips range of the 200 simple MA, if bitcoin price is not within this pip range cryptocurrency trades are not opened.
Bitcoin Uptrend/Bullish Market
To generate buy (bullish bitcoin signals) using 20 pips Moving Average Bitcoin strategy, we shall use the 1hour and 15 minute bitcoin chart timeframe.
On the 1 hour chart timeframe the bitcoin price of the cryptocurrency chart should be above both the 100 and 200 simple moving average. We then move to a lower chart time frame, the 15 min chart time frame to generate a bitcoin trade signal.
On 15 minute chart time frame, when bitcoin 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 bitcoin 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 & 200 Simple MA Bitcoin Buy Signal - Moving Average Strategy Method
Bitcoin Downtrend/Bearish Market
To generate sell (short bitcoin signals) using 20 pips Moving Average Bitcoin strategy, we shall also use the 1 hour chart time frame and 15 minute bitcoin chart timeframe.
On the 1 hour chart time frame, the bitcoin price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 minute time frame to generate a bitcoin Signal.
On 15 minute chart, when bitcoin 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 & 200 Simple MA Bitcoin Sell Signal - Moving Average Strategy Method
With this bitcoin strategy method bitcoin 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 bitcoin price charts.
Profit Taking level for This Strategy
With this bitcoin strategy the bitcoin price will bounce & make a move in 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.
