Simple Trading Strategy that Works - Fishing for Fib Levels like a BOSS
I feel compelled to share with you guys a great strategy for trading that works in bull markets. I haven't been as active on Steemit recently. I've been super busy with trading, working with other coins, and life stuff . . so on to the setup.
Searching for bull markets is relatively easy right now. Take advantage of it by placing bids right in the reload level and licking your chops while it drops into your buy order. I have done this repeatedly over the past couple weeks. Here are a couple charts to better see what I'm talking about. You can't even see where price ultimately went too . . it shot up so damn high.
I bought right at 31,000 satoshis. I also bought another bunch of ZCL at about 29,000 sats, but I did it directly from Bittrex so it doesn't show up on Coinigy. If you are unfamiliar with fib levels, I plan to do a post on them at some time. But YouTube has a treasure trove of instructional and tutorial videos.
The trick is to draw the fib from the bottom of the preceding move to the top. Ideally, the buy zone is right on the 78.6 fib level. Sometimes, I will take a nibble around the 70.2 percent fib, and place another bid at the 78.6 fib level.
It worked splendidly with Civic as well. This is the 4 hour chart. I typically like to use the long tool in Coinigy to give me an exact risk/reward ratio. At least a 2:1 is what I aim for. CVC went blazing up through my sell order. The trick is to allow the market to bottom out, then hit a peak. Don't FOMO (fear of missing out) and buy at the top. Wait. Be patient. Let the market come back down to you.
EMC supposedly had some fundamental news driver . . or maybe it was pumped artificially. Either way, it doesn't really matter. Exact same process here. Starting to see a pattern? Looking for this setup on charts is a systematic way to trade.
Granted, it does not always pan out. My LBC and AMP trades ended up getting washed out. Both are strong coins with active development and good volume. Price has already rebounded a bit since the original setup failed. And that's alright. Trading isn't meant to be a perfect science, but it is a way to gain edge. Maximizing potential gains while simultaneously minimizing losses is the way to go.
If you would like me to do future chart patterns, please let me know. I'd like to start putting into text form what I've been learning the last 6 months or so. Hopefully this can help someone.
Links to the charts: