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Crypto_Trading_Strategy

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13 views

Crypto_Trading_Strategy

trade

Uploaded by

geyah72557
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Refined Intraday Trading Strategy for Cryptocurrency

1. Preparation Phase

Key Tools:

- Charting Platform: TradingView or similar.

- Timeframes:

- Higher timeframe (HTF): 4H or 1H (trend analysis and key levels).

- Lower timeframe (LTF): 15min, 5min, or 1min (entry and execution).

2. Identify Key Levels (HTF Analysis)

a. Market Structure Analysis:

- Determine the market trend (bullish, bearish, or ranging).

- Mark swing highs and lows to identify structure shifts.

- Look for Breaks of Structure (BoS):

- Bullish BoS: Higher highs and higher lows.

- Bearish BoS: Lower highs and lower lows.

b. Smart Money Concepts (SMC):

- Mark Order Blocks (OBs):

- Bullish OB: Last bearish candle before a strong upward move.

- Bearish OB: Last bullish candle before a strong downward move.

- Note liquidity areas:

- Equal highs/lows (liquidity zones).

- Previous day high/low (liquidity targets).

c. Draw Key Levels:


- Support and resistance zones.

- Fibonacci retracement levels (optional, for confluence).

3. Intraday Execution (LTF Analysis)

a. Refine HTF Levels:

- Zoom into lower timeframes to confirm HTF order blocks or liquidity zones.

b. Wait for Liquidity Grab:

- Observe price sweeping liquidity zones (e.g., stop-hunt wicks beyond a key level).

- Look for rejections or engulfing candles after liquidity grabs.

c. Confirm Entry with Price Action:

- Bullish Scenario:

- Price grabs liquidity below a support level and reacts strongly at a bullish OB.

- Entry: On break and retest of a minor resistance or trendline.

- Bearish Scenario:

- Price grabs liquidity above a resistance level and reacts strongly at a bearish OB.

- Entry: On break and retest of a minor support or trendline.

d. Set Entry Triggers:

- Use candlestick patterns (e.g., pin bars, inside bars, engulfing bars).

- Volume spikes can confirm the validity of a move.

4. Risk Management

a. Position Sizing:

- Use your app or Excel sheet to calculate position size based on your $1000 capital.

- Risk 1-2% per trade (e.g., $10-$20).


b. Stop Loss (SL):

- Place SL below the OB (for bullish trades) or above the OB (for bearish trades).

- Avoid tight stops to account for volatility.

c. Take Profit (TP):

- Use Risk-Reward Ratios (RRR):

- RRR of 1:2 or 1:3 is ideal.

- TP levels can be set at:

- Next liquidity zones.

- Fibonacci extensions.

5. Additional Tips

- Time Zones: Trade during high volatility sessions (e.g., overlap of London/New York sessions).

- Focus on Major Pairs: Stick to cryptocurrencies with high liquidity (e.g., BTC, ETH, BNB).

- Journal Trades: Note down reasons for entry, exit, and lessons learned.

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