A simple bitcoin technical trading system is one that focuses on the RSI, or relative strength index, to predict price movements. The RSI is a technical indicator that traders can set to be as strict or as loose as they prefer, so long as the level is above 70. It is best to enter a trade in a conservative manner, as this will protect your account against losing trades.

KISS

A KISS simple Bitcoin technical trading system uses a simple method of chart pattern recognition to identify trading opportunities around key levels. This system is ideal for beginners and newbie traders alike. It relies on a simple set of indicators and helps the trader avoid analysis paralysis. For example, KISS does not use more than two moving averages, Fibonacci retracements, Bollinger bands, or five indicators. Some market conditions, however, will require a different set of indicators.

By using the KISS simple Bitcoin technical trading system, traders can deduce low-risk entry points for currency pairs, and they can also monitor hourly price levels. Moreover, they can predict market direction and trade against traders with opposite opinions. The KISS system is successful as long as it is able to generate profits. It tends to stick to the trend unless it stops making money.

Moving average convergence divergence

The moving average convergence divergence (MACD) is a technical indicator that helps traders determine whether a trend is overbought or oversold. It is a visual discrepancy between the price and the indicator’s moving averages. In a simple bitcoin technical trading system, it is the difference between the EMA of the 12 and the 26-period moving averages.

MACD is one of the most popular technical indicators for cryptocurrencies, and is often used to determine which trend is gaining momentum. This indicator compares the strength of a trend with its direction and is a great tool for identifying new trends. When used in a technical trading system, it is a simple and powerful way to determine whether a trend is growing or shrinking.

Fibonacci retracement

Fibonacci retracement is a technical trading tool that uses the ratio of two prices. It’s used to identify support and resistance levels and to set targets for trades. In this case, price bounced off the 0.618 Fibonacci level, which acted as support in the chart. The Fibonacci retracement tool is very simple to use and requires only a few settings. First, you’ll need to select the high and low price swings. Then, choose the price at which you’re trading.

The Fibonacci retracement is a versatile technical trading tool that can be applied to any currency, including bitcoin. In order to get the most out of the retracement tool, you first need to determine the direction of the market. For example, if the price of bitcoin is rising, then the retracement tool can indicate an uptrend.

Bollinger bands

The Bollinger bands are a key component of technical trading systems, and you can use them to gauge volatility, range, and trend. A trend is characterized by a price consistently going up or down, and a range is characterized by price oscillations between two support and resistance levels.

The upper and lower Bollinger bands are indicators of volatility. The upper band is equal to the middle line, and the lower band is equal to the middle line plus or minus k times the standard deviation. Most platforms use N=20, and k=2, but you can change these parameters as necessary. Also, you can replace the simple moving average with an exponential one.

If a market is in an uptrend, you should buy when price is trading between the upper and lower bands. Then, wait for three consecutive days before you enter the trade, to avoid whipsaws. You can also use a stop-loss that trails higher than the lower band. This will lower your risk and protect your profits.

On balance volume

On balance volume is a technical trading system that uses relative action between price bars to identify potential trends. It generates more actionable signals than a simple volume histogram. It’s based on the idea that the smart money, or institutional investors, are different from less sophisticated retail investors. When volume is increasing and price is relatively flat, it often indicates that the larger investors have come to the market and are pushing up prices. On the other hand, when volume is decreasing and price is rising, small investors are likely to join the market and push the prices down.

On Balance Volume is a technical indicator that is widely used in the stock market. It is a useful tool for swing traders to detect quiet accumulation. This is when smart money is buying an asset and the amount of activity is minimal compared to the total volume. By identifying this accumulation, you can enter the market at a better price.