Crypto’s took a serious dive

Today Crypto currencies took a serious dive. But of course, as we are only in $etc and $xrp at the moment, those two are the only ones that are of interest for us at this point.

$xrp found a good level of support around the blue line, also the low of the end of the year 2017. This low was respected and the price bounced off that level even harder as it wend in. As the overall trend is still bullish, a flush like this offers additional force for the price to go up, as the bulls are not ready yet to give up on Ripple yet.

Probably a lot of money was made in the process for the faint hearted to buy at a better price, as others panicked, or stop losses where hit, and money was lost.

Trade cryptocurrencies – crypto currency trading

 

A low risk trading strategy for cryptocurrencies, because a lot of you guys in here are again wondering if to hold or not. You can use this to join the ride, but not to let all of your profits vaporise again.

Taken into account that some corrections could range up to sometimes 30-40% of the total price and they act extremely volatile, the total position will be 3% of my trading balance. That way it gives me enough time to manually stop the trade at 1%, the risk I normally take on each trade.

The open is not really important, although you would find a better risk to reward if you would wait for a reversal to the support (or resistance, when you sell). You could also open a position at a breakout (daily candle close above the previous high).

In total I don’t want to take more than 3 crypto trades, so when all things go as bad as they possibly can, only 9% of my total trading account is lost. But that is for each one on his or her own.

After a setup, I will trail the price with a 10 day ema (exponential moving average, google it if you don’t know what is is). If the price goes parabolic and end the trade when the price closes below the 10 day ema.

This strategy will be used on all crypto’s eToro will let me trade, so $BCH, $BTC, $DASH, $ETC, $ETHEREUM, $LTC and $XRP.

Feel free to use it, I think I put down a low risk strategy for a high risk market. And this way you won’t use up all of your money when things go wrong.

A warm welcome

A warm welcome to you, visitor. The art of the chart is all about trading, technical analysis and interpretation of price action on the chart. We hope you can check back regularly as we want to post a daily blog with setups as they come along. This website is purely informative, and I hope you like it and will come back on a regular basis.

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Enjoy… safe trading, and remember; be careful out there.