Simple Trading Strategy that Works - Fishing for Fib Levels like a BOSS

in #cryptocurrency4 years ago (edited)

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.

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:  





Good stuff. How about a Steem chart? Followed ;)

I've thought about it. There are a number of steemians here who do fantastic analysis of STEEM already. But . . . you never know ;)

@ shawnfishbit give you 30% i bonus upvote

Hi, made a mistake. You only got 30% in the 100% bunus position.
Must give you 70% on another post, just tell who you want it on

Charts have great value in it, but you need to master the psychology to actually make money from it... Good luck with your learning... If you want to check Bitcoin chart you can always look at my daily posts :-)

Thanks @aarcee. And you are absolutely right. I learned that the hard way when I first started out. Oh, I went to your blog . . . great posts!!

@shawnfishbit thank you for your post. When scouring Steemit for worthwhile content, I get tired of the "make money fast" YouTube videos. Your post, hover, was sold gold. Educational. Interesting. Well crafted. Trading is a tough business, but the skills you show in this post are fundamentals!

Thank you for the comment @chefcryptoshark
I was unsure if I was explaining the process clearly. But the response has been very good.

Great stuff, man... upvoted, reposted, and tweeted!

Thank you sir! Much appreciated.

Great stuff. Checking out your article on XBL right now. Followed.

Thanks so much for the breakdown...
I was just being schooled on some similar fibonacci techniques...Extensions and such... from a friend. Great to have your post prove there's no such thing as coincidence!
My first Steemit read of the Day!

I'm glad you enjoyed it @jovialjoe
Yea. Fib levels are something I incorporate everyday and if I had to choose one concept that completely changed the way I look at the market . . . it would definitely be fibonacci retracements.

Nice one! Follwed and upvoted :)

Thank you. Much appreciated.

Interesting strategy. I happen to know that this was artificially pumped, but great work explaining concepts. :)

Thanks for commenting. Yea, coins tend to get pumped quite often lol
I kind of figured it was artificial.

Love it. Keeping the strategy simple. I enjoy bollinger bands with a few reversals. What's the win:loss ratio for what you've been doing so far?

Talk soon!

Thank you for your feedback @enazwahsdarb I've yet to learn bollinger bands . . but I'd like too soon!! So far I'm looking at a 7:4 Win/Loss on the setup. Meaning, that 4 times price broke below the low of the move. I sold 2 of the coins for a minor loss and kept the AMP and LBC like I said in my post.

Currently, I have 5 more that are alive and well . . haven't hit my sells, but haven't dropped below the low either. It has turned out to be quite profitable. Doesn't work as well in a bear market, so fingers crossed we can still trend higher overall :)

Awesome stuff :) Bollinger Bands are very simple actually. They work in correspondance to the 50 EMA, and give a equal distance both above and below. So if price breaches the bottom band, then it's a higher probability that price will go long, indicating a strong factor of confluence for a potential buy. Vice-versa for the top band. It's a very simple, and effective indicator for the chart. I used it a lot when I used to trade Binary Options :)

Might I ask how this post got 800+ views? I am intrigued :D

Talk soon!

I am not the best Fib guy so I rely on much smarter people for the analysis but it sure seems to work. Resteemed

Much obliged! I am relatively new to this as well. A year ago, I had no knowledge about how to trade effectively. But it's blast and I enjoy it very much.

I suppose if you're not the best, then find someone who is ;) Pretty much the point of having a mentor in life right? :) Might I ask, who are these people? ;)

Yes please, more. I am learning also.

Will do @althorius The community response has been very positive. I'm glad you enjoyed it :)

Yee, fib retracements and extensions are great ways to pinpoint entry and exit points for any actively traded market. Combine with ABCD formations for greater enjoyment.

Absolutely. And it is enjoyable.

upvoted and followed: kindly see my poem hope you love it.@shawnfishbit

your vote is big help to me..thanks

Your AWESOME Followed!!!, Please Follow Back

Very educated, Thank you!!!!!

Nice work. The 61.8% is voodoo magic also! Fibs and crypto, who knew?!

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