empty
17.05.2021 01:58 PM
Bitcoin volume analysis for May 17, 2021

This image is no longer relevant

1.How to make money on cryptocurrencies?

2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange

3. Trend analysis.

4. Japanese candlestick analysis.

5. Conclusion. Statistics.

1. How to make money on cryptocurrencies?

Risk management is very important if you want to become a professional trader. In trading, everything starts with risks. It does not matter how much a trader makes in a year. The ratio of profit to maximum drawdown comes first. If a trader has earned 100% per annum, this is a good result. At the same time, if the drawdown has reached 90%, such statistics are unlikely to attract investors. A good profit-to-risk ratio is considered to be 2 to 1. For example, if the annual return was 20% per annum with a risk of 10%, this is pretty good. Such statistics can be attractive to investors. In order to achieve such results, the risk management algorithm must price in all possible risks. In the previous article, we considered the risk per trade. Further, we will discuss other risks.

Day trading risk. This risk determines how much you can lose in one trading day. This risk should be small, for example 3-5%. What is the point? Sometimes there are exceptional events in the world such as terrorist attacks, floods, man-made disasters, etc. This can make the market highly volatile and, accordingly, lead to losses. Therefore, on such days, it is better to close positions at a 5% loss than to continue trading and suffer huge losses. When reaching this maximum risk level, it is worth stopping trading.

This secure approach will protect your deposit and open up opportunities for large capital management.

2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange.

Apparently, the market has entered a downward correction. Let's consider the levels of the maximum traded volumes based on the Chicago Mercantile Exchange. These indicators show the activity of major market players.

13.05.21 - The level of the maximum traded volume (POC - Point Of Control) - 50040

14.05.21 - The level of the maximum traded volume (POC - Point Of Control) - 49230

The POC has moved down, the price is below the maximum traded volume. The market is moving in a downward trend. In such a situation, according to the volume analysis, you can open short positions.

3. Trend analysis.

The second step in this analysis is to determine the short-, medium-, and long-term trend. It is worth opening trades when the direction of all three trends coincides. Trend analysis is carried out with the help of an exponential moving average:

EMA 1152 (blue) shows the long-term trend on the H1 chart, which is similar to EMA 48 on the D chart;

EMA 288 (red) shows the medium-term trend on the H1 chart, which is similar to EMA 48 on the H4 chart;

EMA 48 (black) shows the short-term trend on the H1 chart.

This image is no longer relevant

The price is below all three EMAs. The trends are downward. Therefore, according to the trend analysis, it is possible to open short positions today.

4. Japanese candlestick analysis.

Market analysis with the help of Japanese candlesticks is the third step in this trading system. Let's analyze yesterday's daily candlestick:

This image is no longer relevant

The candlestick has closed downwards, the candlestick is black. The low is below the low of the previous candlestick. The candlestick pattern matches the trend. It has a long body and small shadows. According to the Japanese candlestick analysis, it is worth considering sell orders.

5. Conclusion. Statistics.

Volume analysis - SELL.

Long-term trend - SELL.

Medium-term trend - SELL.

Short-term trend - SELL.

Japanese candlestick analysis - SELL.

Conclusion: On May 17, 2021, you can open short positions on bitcoin as different types of analysis provide the same forecasts.

To analyze the effectiveness of this trading approach, you should use statistics. Based on these forecasts, we track the data on completed transactions and open new deals in a separate account. Transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. They are analyzed in the same way. Gains for three months amounted to 9.1%, with a maximum drawdown of 4.88% Statement:

This image is no longer relevant

We continue to keep the short position on bitcoin open. The stop-loss order has been moved beyond the extreme point of the previous session. Part of the profit has already been locked in.

The risk is not more than 1% per trade, this approach is conservative. According to this system, a stop-loss order is placed beyond the daily low or high, depending on the direction of the trade. We do not set take-profit orders, enabling the price to grow without limits. We follow the trade, moving SL beyond the extreme points of the future sessions.

Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day.

Trade along the trend and you will make a profit!

Maxim Petrov,
Analytical expert of InstaTrade
© 2007-2025
Earn on cryptocurrency rate changes with InstaTrade
Download MetaTrader 4 and open your first trade

Recommended Stories

Le Bitcoin bondit de 96 600 $ à 104 500 $ en 24 heures

Le Bitcoin a grimpé à 104 500 $, après s'être négocié à 96 600 $ seulement hier matin. Ce mouvement confiant au-dessus de la barre des 100 000 $ signale

Jakub Novak 14:49 2025-05-09 UTC+2

Recommandations de trading pour le marché des cryptomonnaies le 9 mai

Le Bitcoin a dépassé les 100,000 dollars, tandis que l'Ethereum tente de se consolider au-dessus de 2,000 dollars. Après le rallye spectaculaire d'hier, qui s'est poursuivi durant la séance asiatique

Miroslaw Bawulski 09:46 2025-05-09 UTC+2

Analyse technique du mouvement des prix intrajournaliers de la cryptomonnaie Ethereum, vendredi 9 mai 2025.

Si nous observons le graphique de 4 heures de la cryptomonnaie Ethereum, il semble que le mouvement des prix évolue au-dessus de la WMA (30 Shift 2) qui présente également

Arief Makmur 06:27 2025-05-09 UTC+2

Analyse technique du mouvement des prix intrajournaliers de la cryptomonnaie Bitcoin, vendredi 9 mai 2025.

Sur le graphique en 4 heures de la cryptomonnaie Bitcoin, l'indicateur Stochastic Oscillator est actuellement en conditions de surachat et se prépare à croiser pour une vente et à passer

Arief Makmur 06:27 2025-05-09 UTC+2

Bitcoin : Qui Fait Monter le Prix — Powell, le Trésor Américain, ou les Short Squeezes ?

Alors que les indices boursiers restent stables, l'or se consolide près de ses sommets, et le Bitcoin attire à nouveau l'attention. Le fleuron du marché des cryptomonnaies s'est approché

Ekaterina Kiseleva 00:28 2025-05-09 UTC+2

Recommandations de trading pour le marché des cryptomonnaies le 8 mai

Le Bitcoin a atteint juste en dessous de 100,000 dollars, tandis que l'Ethereum a atteint 1,900 dollars. Une telle croissance majeure du marché des cryptomonnaies confirme à nouveau ses perspectives

Miroslaw Bawulski 09:22 2025-05-08 UTC+2

Bitcoin à la Croisée des Chemins : Rupture ou Revers ?

Le prix du Bitcoin oscille près d'un seuil psychologiquement significatif, et les acteurs du marché se préparent à une nouvelle montée ou à une inversion soudaine qui pourrait anéantir

Ekaterina Kiseleva 01:16 2025-05-08 UTC+2

Le marché des crypto-monnaies s'ouvre avec une croissance dynamique

Les contrats à terme sur les indices boursiers américains ont fortement bondi à l'ouverture de la séance de négociation d'aujourd'hui suite à l'annonce de la reprise des consultations

Jurij Tolin 14:14 2025-05-07 UTC+2

Recommandations de trading pour le marché des cryptomonnaies le 7 mai

Bitcoin et Ethereum continuent de croître suite à des nouvelles législatives positives sur les cryptomonnaies Le Bitcoin est actuellement coté à 96 700 $, après un rebond depuis un creux

Miroslaw Bawulski 10:32 2025-05-07 UTC+2

Bitcoin se renforce : Le marché se prépare pour la prochaine vague

Le Bitcoin se négocie dans une fourchette de $93,000–$94,000, soit environ 0,5% en dessous de son récent pic local de $97,900, enregistré le 2 mai. La volatilité a diminué

Ekaterina Kiseleva 01:23 2025-05-07 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.