Video: market update, custom filter and alerts

After two weeks of big gains, altcoins are taking a breather as some traders and investors sell to take profits.  This creates a momentum downshift, and potential opportunities for trend traders.

We explore those opportunities by building a custom filter that scans the market for coins in an uptrend (Medium- and Long-term), experiencing a pullback over the last 1 week, and have a bearish MACD crossover.  We’re looking for coins where momentum is bearish but inflecting to bullish again.

Our Knowledge Base explains ways to utilize MACD indicator for trading, including spotting early momentum inflections.  Read here.

Some of the altcoins this screen yielded were HEX, AXS, SLP, and TOMO. 

We also review a couple of outstanding gainers: PERP and LUNA.

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More recent blog posts:

Finding Some Gems in an Uptrend
Anticipating a Bounce from Oversold Levels
Is this the bottom or just bear market rally?
How to trade a downtrend with Short Selling
Week 29 – winner and losers
Swing Trading
Crypto bear market? How to trade it?

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.  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.