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RE: Introducing our first Crypto Market Scanner
Thanks for all your feedback guys, but isn't it different when it come to 'daytrading', I've done the following steps:
- Alarm went of, more than 15% in 5min
- Look at the 1 hour chart - highly volatile coin, with a good history (I define good as, high swings above my buying price)
- Look at the 5 min chart, currently 'low'/ cheap to buy
- Set buy order a little below the price of when the alarm went of
- This coin makes swings of 20-30%, so set a sell price of 10% (just to play it safer)
Please let me know, all feedback is welcome!!!
P.s. I did get my selling price... but more interested if my reasoning is correct
Whose "day trading rules"? I dont recall anyone discussing a different set of "rules" in Luc's posts. What you are doing seems like gambling to me, not trading.
I though with the account builder trades there were different rules? I probably get it all wrong.... so maybe you can help me out... On a chart like this, what is the 'right' procedure? Would you set a buy-order lower than where the candle ends? Thanks for your responses so far! https://www.coinigy.com/s/i/5979d11b1e1e6/
I suggest you wait until @quickfingersluc puts out a series of videos on day trading with account builders. Attempting to dive into the deep end of the pool without knowing how to swim is very dangerous, you should instead learn to crawl before you try to walk. In other words, focus on the basics of position trading first, get that right and log many successful transactions under your belt, and then (and only then) should you try day trading using the scanner. Why? Because day trading cryptos properly uses remarkably similar techniques... find the base, determine your expectation, determine the reason for the sudden fall in price (is this the first pullback?), and predict where the bounce will occur, etc.
PS: I would not trade that chart, I see no compelling evidence that my trades would be profitable.
This chart is a good example of what we are looking for when using the scanner. See the large fat fingered drop here? This is probably a single seller dumping his or her position, this sudden influx caused the price to drop so quickly that the market barely had time to react. If you bought, you would be selling some of your position at around the 50% retracement, this would assure that your unlikely to take an accidental loss in the event our assumption that the market will return to normal is wrong. I would have probably gotten around 15-25% ROI on this quick trade, and be out of my position within a matter of minutes. Note that I am still using a 1 hour chart, the only reason why we might switch to a 5 minute chart is to verify our assumptions about the dump, clearly this was not a panic - the market was expected to rebound no matter how low the price went = great opportunity to pick up a few quick bucks!
https://www.coinigy.com/s/i/597a2bd454477/