In our Altcoin Trading Strategy Series, we’re bringing you another straightforward, price action-based strategy that’s easy to implement. If you missed Part 1, make sure to check it out here. Let’s dive into this powerful EMA crossover strategy.
Simple Steps to Implement the EMA Crossover Strategy
1. Go on Daily/12H Timeframe
- Begin by switching to the Daily or 12-Hour timeframe to capture significant trends and reduce noise.
2. Look at the 50 and 21 EMA
- Add the 50 EMA (Exponential Moving Average) and 21 EMA to your chart. These moving averages help identify trend direction and potential entry points.
3. Mark the Bear Market Downtrend
- Identify and mark the major downtrend lines. This helps to visualize the bearish trend and anticipate potential reversals.
4. Mark the Last Range Levels Before Bottoms
- Highlight the last consolidation range levels before the market bottoms out. These levels often act as key support and resistance zones.
5. Wait for the Downtrend Break
- Be patient and wait for a clear break of the downtrend. This signals a potential shift from bearish to bullish momentum.
6. Enter on 21/50 EMA Crossover
- When the 21 EMA crosses above the 50 EMA, it suggests the beginning of a bullish trend. This is your signal to enter the trade.
7. Continue to Enter as More Levels are Broken
- As the price breaks through additional resistance levels, consider adding to your position to capitalize on the strengthening bullish trend.
By following these steps, you can effectively utilize the EMA crossover strategy to trade altcoins. Remember, patience and discipline are key to successful trading. For more insights and strategies, stay tuned to Coinstune.com.
Happy trading, and may the markets be ever in your favor!
