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How To Profit
How To Profit
So: buy low and sell high. Right! But...how to? How to know when it is low enough to buy? And how to know when it is high enough to sell?
Let's start from beginning: cryptocurrencies trading is not like FOREX or Stocks trading. You simply CANT loose 10 to 15 years of your life studying indicators and meaningless drawings on a graphic. By then...your favorite crypto coin would be dead...
But...if indicators and shits like that are meaningless...why Poloniex (and other exchanges) bothered so much to provide us with nice candlesticks graphic and a bunch of indicators? Ok here is the answer: because they let you know when it is low enough to buy or high enough to sell.You think I'm crazy uh...ok let's see: the following graphic shows a random period of a random cryptocurrency trading against BTC. Besides candlesticks, i enabled 2 lines of 2 different colors: EMA1 and EMA2
EMA1 and EMA2 are kinda of a weighted average of price and quantity. Literally, it is Exponential Moving Average. The number 1 and the number 2 on the side of EMA, indicate 2 different periods of calculations. Usually, EMA1 is calculated on longer periods and EMA2 on shorter periods. It indicates the average moving (up or down) of the latest prices calculated in the defined time. I suggest you set EMA1 to 4 hours and EMA2 to 2 hours if you want recurring trades in one hour or higher (4 to 8 hours or 6 to 12 hours) if you are fine with fewer trades per hour/day. Next: when to buy? When to sell? Ok, this is the answer: there is a space between EMA1 and EMA2 (sometimes there is not and they run like they were equals). Every price below the bottom of EMA1 and EMA2 is a time to buy. Every price above the top of EMA1 and EMA2 is a time to sell. So: let's use some new colors now: yellow to buy and azure to sell. The graphic above would become like this:
When you see the yellow it is time you buy.When it is azure it is time to sell. You can try it with manual trades! There is a gray area between the EMA1 and EMA2: it is a pre-buy area and a pre-sell area.If the trend is going down, get ready to buy, if the trend is going up get ready to sell. HOLD YOURSELF to buy or sell in the gray area! You will know if the trend is really going up or down AFTER.So again: buy in yellow area and sell in azure.Try it! This is what GUNBOT does: repeatedly, 24/7, even when you sleep. Think about it...
Are there any apocalyptic cases that this will not work? Yes: we will talk about it later, in the topic about the "dumps" and "dumbs".