Strategy Screen updates (OMG, CRO, BNB, KCASH, BTC)
We’re highlighting results for five popular strategy screens, and featuring new picks.
These screens are now accessible in our Signals Summary tab to all users. You can run these screens anytime (watch 3 min video) and create alerts to get notified with coins or pairs that match the screen criteria.
Our featured picks on Oct 10th from the five strategy screens have yielded the following gains/losses:
Note: prices from Oct 10th are end of day closing prices and Oct 13th are intraday.
Below we highlight one specific setup for each strategy screen, but let’s start with Bitcoin (BTC), because it sets the tone for the entire market.
Recently it broke upwards from a symmetrical triangle and had very decent gains. Resistance is around $12,000 and there’s potential to take out this year’s high ($12,500). RSI above 70 signals that it’s a bit overbought and we may get some consolidation, but remember that RSI can stay overbought/oversold for an extended period.
Now onto the five strategy screens. Here are the highlights:
1. Pullback in Uptrend. This is a trend following strategy. Pullbacks can often provide opportunities to jump on an established trend.
We highlight OMG (OmiseGo) today. On 10th October MACD produced bullish signal, RSI is gaining momentum above 50 and SMA 100 seems to act as a good short-term support.
2. Momentum & Uptrend. This screen looks for coins in a long-term uptrend and a recent bullish momentum upswing.
BNB is hot right now. It produced numerous bullish signals recently, namely MACD cross-over on 12th October, blew through the symmetrical triangle to the upside. With RSI still below 70, it has potential more room to run and it can also stay overbought for some time, but be aware that there is potential resistance at around 33.00.
3. Momentum – bullish. This screen looks for coins with bullish momentum, regardless of trend direction.
- Confirmation of a trend. If the momentum signals are bullish and the general uptrend is Up, then this can serve as a confirmation.
- Reversal indication. If the momentum signals are bullish but the general trend has been Down, then this could signal a trend reversal (from Down to Up in this case). Vice versa, if the coin has been in an UpTrend, but momentum signals turn bearish, this could indicate a correction / pullback or a trend reversal.
In this strategy, we highlight the price action of CRO (Crypto.com Coin). There is SMA 100 looming over current price, which acts as resistance, but recently MACD and RSI produced a buy signal. Watch out for this resistance to be broken to jump on the bullish price action.
4. Range in Uptrend. Range-bound trading is a trading strategy that seeks to identify and capitalize on coins trading in price channels.
Today, this screen did not produce any results since there were movements in the markets and virtually no coins are trading in range at the moment. By the way, you could drop down a timeframe or two from the daily that we’re using to even an hourly. These same strategy screens could be used across all timeframes, which could yield more but shorter term trading opportunities.
5. Very Oversold. This screen looks for extremely oversold situations that could be ripe for a bounce as sellers get exhausted and value hunters step in. This type of situation ain’t for the faint of heart and is clearly intended for swing traders looking for a reversal. But it could turn into one of those “catching a falling knife” situations.
KCASH price action appears very interesting as a potential value play. There is a huge descending triangle looming over the coin from August, ready to break. Descending triangles are usually bearish patterns, so the coin may not be done tanking, but they can often resolve to the upside too. Conservative traders can wait for a breakout. More adventurous traders could bet that the bottom is near the support zone and close to SMA 100, and with RSI and STOCH severely oversold, there could be a bounce coming.
Risk management – Stop Loss and trade size. In all of these setups, traders should use Stop Loss orders to manage their downside risk, in case the trade goes against us, as it often will. Trading is about probabilities and even though these setups have a high win rate, one must be prepared to minimize losses on the trades that go bust. If Stop Loss order types are not supported by they exchange, at least set up a price alert (see video). Also, trade size should be such that you never risk losing more than 2% of your total equity. Keeping the trade size small allows the trader to setup a wider Stop Loss, which gives the trade more room and time to complete with success. Setting Stop Loss levels too tight can often result in getting knocked out of a trade prematurely.
Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. There are risks associated with investing in cryptocurrencies. Loss of principal is possible.
Written byRichard Fetyko