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in #bitcoin7 years ago

The Best Bitcoin Trading Strategy – 5 Easy Steps to Profit
(Rules for a Buy Trade)
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Step #1: Overlay the Bitcoin chart with Ethereum chart and the OVB indicator.
Your chart setup should basically have 3 windows, one for the Bitcoin chart, the second one for the Ethereum chart and last but not least one window for the OVB indicator.

Step #2: Look for Smart Money Divergence between Bitcoin price and Ethereum price.
What do we mean by this?

Simply put it, we are going to look after price divergence between Bitcoin price and Ethereum. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency.

For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence. It means that one of the two cryptocurrencies is “lying.” This is the main reason why we have called this cryptocurrency trading strategy and Ethereum trading strategy as well.

Step #3: Look for the OVB to increase in the direction of the trend.
If Bitcoin is lagging behind Ethereum price it means that sooner or later the Bitcoin should follow Ethereum and break above resistance.

But, how do we know that?

Simply, the OBV is a remarkable technical indicator that can show us if the real money is really buying Bitcoin or quite the contrary they are selling. What we want to see when Bitcoin is failing to break above a resistance level or a swing high and the Ethereum already broke is for the OBV to not only increase in the direction of the trend, but to also move beyond the level it was when Bitcoin was trading previously at this resistance level

Step #4: Place A Buy Limit Order at resistance level in an attempt to catch the possible breakout.
Once the OBV indicator gives us the green signal all we have to do is to place a buy limit order at the resistance level in anticipation of the possible breakout.

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For future viewers: price of bitcoin at the moment of posting is 7721.60USD

may be but not confirmed that

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