DAY TRADING
BTCUSD
How a Day trader may operate
CHARTS
Day Traders typically use 4 time frames on 1 screen to identify and make trades. 5 min is a popular choice with the 4 hour providing the key Direction
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The use of MACD crossovers will be used to mark the start and end of trends.
TREND IDENTIFICATION
Traders use the 4 hour to detemine whether to go LONG/SHORT. They move down to the 1 hour chart to look for matching trends.
They take positions when ONLY the 4 hour and 1 hour trend matches AND either the 5 or 15 min MACD provides the signal
TRADE EXECUTION
Open positions when the 5 min MACD provides entry when all time frames are ALIGNED.
Stop loss will be placed at the supertrend line and profit is taken when the MACD signals the exit
BTCUSD
Tools used for trading signals
4 HOUR CHART
Use the 4 hour charts to idenfity the direction of the trade. Never go against this trend. Use the supertrend indicator to see whether you should be Long (Blue) or Short (Red)
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Use the MACD crossover to identify start and end of trades based on positive or negative crossovers
1 HR CHART
Take trades when the 1 hour is uptrend based on the supertrend line and the MACD signals a positive crossover. Short trades work in the same way with the supertrend (red) and a negative MACD crossover.
15 MIN CHART
Traders use the 15min or 5 min to place orders when either timeframes are in sync with the existing trend on the 4 hr and the 1 hr charts
5 MIN CHART
The best case scenario is to take the trade on a pullback of the 5min and then the impending MACD crossover of lowest time frame to place an aggressive trade.
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The perfect scenario is when all timeframes align. Supertrend in the Green and MACD positive crossover. This of course is in an ideal scenario.
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Stop Losses are always place on the supertrend indicator line. Move your stop losses when the price moves successfully in the traded direction.