We all want to make some money by trading. Many of us dreams, that we will become millionaire by trading. All the experts maybe already became millionaire. But we newbies didn't. Many of us didn't even make a dime but lost everything. So today I will share a strategy, so that you can a least know that when is the right time to buy a coin.
Note that I am not an expert trader. So please practice this strategy well before you use this for real trading. And sorry for my bad English. Please forgive me for that.
For these strategy we need MACD and RSI indicators. Those who know how to setup indicators and where to practice the strategy don't read the bracketed part. And those who don't know read the bracketed parts.
[[[[[To practice this strategy, go to binance.com
Then select any pair of currency. Then take you mouse pointer on Exchange. Don't click on the Exchange, because it may take you to the homepage.
Then click on Advanced.
Then click on Trading View. If it's already clicked or the font is yellow like the picture, then you don't have to click it again.
Now click on this four arrow thing. It will maximize the chart.
Now click on the Indicators. And search for MACD. And click on MACD.
After clicking on MACD your page will look like this.
Now click again on the Indicators and search RSI. And click Relative Strength Index.
Now your chart will look like this.
For me to explain you easely I will change the size of the lines of the MACD and RSI indicators.
]]]]]
Now let me explain the strategy. First we have to look that where is MACD's BLUE and the RED line in. If they both are below zero line then we should not Buy. Let me give you an example.
The red boxed line is zero line. And we can see that both Blue and the Red line is below zero line. It means the market is now in the down trend. When both of the line will go above zero line then it will become a up trend market. Let me give you an example.
Now we have to see that if the blue line of MACD cross the red line of MACD from below then technically it will be a buy signal and the price of that coin may rise. It may happen in under the zero line or above the zero line. Let me give you an example what I mean.
You can clearly see on the Image that the blue line is crossing the red line from below.
It technically created a buy signal. So you can buy in that point. But the buy signal is not that strong.
Now if the blue of MACD cross the red line of MACD from above then technically it created a sell signal. That the market might go down. Let me give you an example.
It created a sell signal. Now you are a normal trader then you should sell in that point. But if you are a forex trader then you should not put sell immediately.
When should I Buy or Sell
As we know when MACD create a buy signal and sell signal now we have to know when it create strong buy signal and sell signal.
Sell
Whenever both blue and red line above zero line and Blue line of MACD crosses the Red line of MACD from above and both of the line came below of the zero line then you must have to sell your coin. Because it created a strong downtrend market. And if you do not sell your coin then you might face a big loss. So you should better sell. I will suggest you whenever you see the blue of MACD cross the red line of MACD from above you should sell. Let me give you an example.
You can see that when the blue of MACD cross the red line of MACD from above the market started falling. And became a downtrend market.
Buy
whenever you see both blue and red lines are below zero point and the blue line of MACD cross the red line of MACD from and below and both blue and red line get above the zero line and it will create a great buy signal and to ensure it see the line of the RSI. If it is also making uptrend signal, then you can buy it. Let me give you an example.
As you can see the blue line of MACD crossed the red line of MACD from and below and they climbed above zero line and the RSI was also sayed up. And it went up.
So I hope I gave a simple idea how to trade. Please don't take it your only strategy. Because might not work 100% every time.
Nice blog