Have you noticed or experienced a situation where the market moves against you everytime you enter a trade?

Many of my friends have been Liquidated forcing them to distrust trading and cryptocurrencies as a whole. A friend shared this post

SUGGESTIONS/ GUIDANCE AND REPLY

You probably traded with less than $5. Remember that most trades with little margin are prey to those with big margins. Therefore, When trading futures with a small margin you should:

  1. Trade on short timeframes,

  2. Don't stay for long in your trades,

  3. Set targets eg take profit when it increases with a specific %,

  4. Be Disciplined, Consistent and Keen.

For those with a higher margin, you can also be liquidated if you're not alert. You should study the prices and % increase or decrease of a token in 5 or more timeframes i.e. 3 higher timeframe chart and 4 shorter timeframe charts). When you do this, study the price movement in overall trends( high timeframe) vs short trends( short timeframes), Study the Volume change in high and low timeframes while relating that to changes in prices. You can use Bolinger bands to determine if and the scenarios that contribute to a token being overbought or oversold.

MACD, EMA and RSI indicators are Very Important.

I won't dive into the specifics and mechanics of them but will tell you the settings that should be used,

For MACD, you should study the histogram in both higher and smaller timeframes. You will have a pre-set period and you don't need to change it. You will look out for instances when the general MACD( white) crosses the converging MACD( yellow)

For RSI, always look out when RSI has crossed over 50 or under 50.

For EMA, your settings also depend on your trading time . You can have UpTo 4 periods eg 5, 7, 21, 50. You can set any 2-4 periods but always have the 100EMA.

When you put all the three indicators to use, look out for bearish or bullish scenarios:

For a bull run, the conditions to enter trade are;

The RSI must close above 50, For MACD, the general MACD( white) should cross the converging MACD( yellow) BELOW the histogram, For EMA, the price should cross and close above the 100EMA. #bullish #bullrun #bullishdivergence

For a Bear run, the conditions to enter trade are vice versa;

RSI closes below 50, For MACD, the general MACD( white) should cross the converging MACD( yellow) ABOVE the histogram, For EMA, the price should cross and close below the 100EMA. #bearish #bearrun

When your conditions are met, enter trade and watch your profits grow.

Remember, this strategy will be more successful and profitable for traders with a higher margin or sufficient balance that can automatically cover liquidations. For small margin traders, don't overstay your trades, Trade fast, Frequently(HFT and Scalping), and Consistently because the market can do a retest and go against you before resuming the predicted trend.