*I don’t trade cryptocurrencies. Here’s the best strategy for trading cryptocurrencies.
Here’s the outlook for various cryptocurrencies based on the aforementioned strategy.
Discretionary outlook based on charts
- A lot of smaller cryptocurrencies are soaring. Protect these long positions with a moving stop loss.
- Bitcoin has not broken out yet.
- Ethereum touched $1000, as expected.
- Dash is forming a triangle consolidation.
3:12 pm. Smaller cryptocurrencies continue to soar.
A lot of the smaller cryptocurrencies continue to surge while the big ones are consolidating. This is called “sector rotation”, which is normal for the last big upwave of a bubble. Smaller crypto’s that were previously lagging will probably lead the last upwave.
Here’s Cardano. Trend followers in the crypto space should hold their longs with a moving stop loss.
Here’s TRON. Longs in this crypto need a very tight moving stop loss.
Here’s Stellar, which has gone parabolic but has fallen more than other cryptocurrencies over the past 2 days. Longs in Stellar should be careful because its moving stop loss (15 ema) is coming up very quickly.
12:51 am. Bitcoin has not broken out yet.
Bitcoin has broken out from its triangle consolidation pattern.
However, Bitcoin hasn’t completely broken out yet. It is once again at its 61.8% retracement. Trend followers should wait until Bitcoin breaks above $20,000 before buying.
10:28 am. Ethereum touched $1000, as expected.
The best crypto traders that I know went long Ethereum at $860 and sold when it hit $1000. But trend followers should stick with their long position unless it breaks down below a moving stop loss like the 15 ema.
10:17 am. Dash is forming a triangle consolidation.
Dash’s consolidation pattern is very similar to Bitcoin’s. This triangle pattern is coming to an end. Like Bitcoin, trend followers should wait for Dash to breakout above its previous high before buying.
I don’t trade crypto. But here are the trades that the Crypto Trend Following strategy would put on, including a 15 ema moving stop loss.
- Long Ethereum, with a stop loss at $800.
- Long Ripple, with a stop loss at $1.84