Hello traders. Today I'm going to give you an update on bitcoin and where the price is heading next. I will be writing in a longer term perspective. There are really great stuff coming for bitcoin that makes it fundamentally strong investment at these low levels. Following news and keeping eyes on these projects that are coming to bitcoin might give you an idea. I'm trying to keep this unbiased and also it is worth to keep in mind that this is not an financial advice. Do your own research and if you decide to invest or trade these decisions are totally up to you. Overall sentiment and atmosphere is very bearish. Main reason for this is that a lot of people bought at the high prices, expecting high returns but each time it showed signs of a bullish reversal, downtrend resistance was hit and it dropped even lower. This is likely a good buying opportunity because when overall sentiment is pessimistic, markets are likely to recover soon after. This is known as "the herd effect" when majority of people follows a bit behind and have made some losses. Anyways let's get to the technical part. In the both charts (Linear & Log) - both downtrend lines got violated and it got pierced through. Linear managed to recover back above of the uptrend line and which also rejected strong support level found at $6.800. [Image 1 LOG-chart] [Image 2 LINEAR-chart] The linear chart (Longer term) is showing us signs of recovery on the daily timeframe. StochRSI has taken oversold position, pointing upwards and has a plenty of space to move upwards. RSI agrees with StochRSI when it took oversold position, bounced and now is pointing upwards Hammer pattern which can be found at $6.800 level. The price is heading towards the first resistance zone which has acted previously as a support area. This area should not be neglected as the price might have a minor pullback from this level. More details on this down below. [Image 3 The Daily Chart] Confirmations are very important when it comes to trends. The daily candle needs to close above of $8000 resistance level to give a bullish confirmation and that the price is wanting to move further upwards or needs to break above of it with force to indicate that buyers are back in the game. To see full bull mode on, the price needs to breach above of the second resistance level which can be found in between of $9.000 level and $9.500 level. This is why it's crucial to follow the price movement near to the first resistance zone and see which direction it will take from there. It's worth noticing that after huge downtrend, recovery should not be expected to happen quickly. Recovery from a bear trend takes time and will gradually turn in to a bull trend. [Image 4 The 4h Chart] The 4h chart (medium term) is showing signs of exhaustion and minor pullback should be expected soon. StochRSI + RSI takes overbought position Hovering close to resistance zone ( formed by $7.500 level and $8.000 level) where it's likely to have minor pullback before moving back up again. No bearish divergence other than on the 1h chart (not reliable / confirmed yet) Conclusion: The daily and fundamental aspects of bitcoin are showing that with these prices it's likely a good opportunity to open longer term trades. If it does manage to break above of the first resistance zone, then there are two ways to enter this breakout: The breakout The retest of the breakout For the short term traders minor pullback should be expected and for the longer term, it's starting look good. DISCLAIMER: Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything. https://steemit.com/bitcoin/@yarbitcoin-signs-of-the-recovery-in-process-new-trend-beginning-technical-analysis-4-3
If you were to write a BTC/LTC trading bot, what features, strategies, and architecture would you use?
Security and how it affects Architecture and Platform(s)
I know it's a bad idea to put your API key and secret in a file. Is it safe to have them submitted in a form as long as it's over HTTPS, say if I had a bot script hosted on my web server? Or, would it be better to have them only as environment variables? How would I go about doing that if I'm not a sysadmin? Does this mean I should be running the bot only on my local system?
Features (and avoiding feature creep)
At its focus, I would like this bot to be able to make small amounts of money off of LTC/BTC price differences and the smaller, more predictable fluctuations of the bid/ask spread within a single currency. What features am I going to need to effectively manage this type of strategy, and what sort of features would be overkill or lead me down paths of very little productivity or profit?
Technical Analysis and Indicators
I am not good with math. I barely understand trig, can't do calculus to save my life. What indicators would you use that I could be able to understand the math behind enough to program checks and rules into a bot? I have been watching StochRSI at various time periods, and it seems to be a fairly accurate predictor of some trends, but there's an awful lot of noise as well. 10/21 EMA crossings seem to be even noisier. They happen all the time on the shorter period charts, and often will cross multiple times in a day, even on the 1h chart. What indicators would you use if you were writing a bot for low-risk trading? What simple rules would you put in place to make the basic trades, and what rules would you write in order to act as checks and balances against other stupid bot rules? How would you avoid being manipulated by other bots?
Should I even bother?
Is this a fool's errand? Should I just download someone else's bot code, or use an Ichimoku bot on cryptotrader.org? I don't want to be a fish and just use a bot that someone else is going to manipulate, and I don't want to get a trojan or have all my bitcoins stolen, or pick a buggy or malicious bot that trades me into $0 immediately. So, I still think I may want to try writing one myself, but my attempts so far have been poor. I can't even seem to get the authentication working to read from the BTC-E API when I copy and paste the code from their own site. If this really is a bad idea for a self-driven noob software project, let me know, and then I'll just Buy & Hold and do other stuff with my free time :) Otherwise, I would appreciate some advice in choosing my path, or perhaps a collaborator who would want to work on a bot together.
I have been using the Stochastic RSI oscillator to time my bitcoin buys to gain a favourable entry price. After a high of $1160 on BitStamp price corrected today to under $900 and the StochRSI signalled a buy. I consider any price under $900 a bargain considering recent price action.
I want /bitcoin's opinion of a bitcoin trading tool I developed. I have dumped hundreds of hours into a program that does Bitcoin backtesting with various bar lengths (min, hours, double hour, etc) with live and historical data. Profitable algorithms have been tested based on industry standard trading indicators like:
Commodity Channel Index (CCI)
Money Flow Index (MFI)
Detrended Price Oscillator (DPO)
After the backtests proved comfortable returns, I hooked up email/SMS alerts to notify me when to make trades. The last few months have been very financially reward, but that isn't why I wrote this. I wrote this, because Bitcoins are awesome, I love programming, and I love financial trading. In future versions, I plan on adding:
Hourly Price Text Messages
More Algorithms (of course)
Automatic trading on MTGox
Thorough documentation on how each indicatoalgorithm works
Open sourcing algorithms to allow user contribution
Now, I am seriously considering turning this into a website for anyone to use, but I don't want to waste my time building out an awesome website if no one would be interested in using it. So, tell me /bitcoin, would you use such a website? If not, why?
This is a strategy that is based around using the general value of the RSI to determine the trend and then using the Stoch RSI to pick and entry point. It also uses the RSI to determine a profit taking point or exit point from the trade. This version doesn't have a stop loss other than the signal to trade the opposing direction. Therefore it is more effective in higher trading time frames like ... Let’s analyze the Bitcoin StochRSI chart above, by plotting the 200 EMA (Exponential moving average) and the %D of the StochRSI. We can clearly see the divergences, and we only take signals in direction of the main trend. TIP: You should never take countertrend entries trading StochRSI divergences, just stick with the main trend on the market.. The reason I only display the %D is simple. StorchRSI indicator example. //Developed by Tushar Chande and Stanley Kroll. //Robert C. Miner calls it by his proprietary name, Dynamic Trader Oscillator or DTOsc and his considerable // innovations were to set the oversold level at 25, set the overbought level at 75, // and to come up with 4 special settings: 8,5,3,3 13,8,5,5 21,13,8,8 34,21,13,13 // His High Probability Trading Strategies ... MACD & StochRSI MACD & StochRSI for FTX:BTCPERP by goksche23 — TradingView StochRSI 54 MACD -47.2 Published at Thu, 20 Aug 2020 17:54:12 +0000 Meanwhile, stochRSI is derivative of RSI itself, or a second derivative of price. One of the key differences is how quickly the indicators move. StochRSI moves very quickly from overbought to ...
Binance Trading Tips: The Stochastic RSI Indicator
Bitcoin Trading Challenge 76,196 views. 11:29. Cryptocurrency Basics #2 - Stoch Rsi and Aroon Indicators - Duration: 7:38. Crypto Advisor 5,895 views. 7:38. Intraday Trading Strategy - Bollinger ... The Bitcoin price today is $ 13,001 USD - and the bitcoin news today is showing there is another stock market crash in the very near future, as the dow jones... It's based on Bytecoin, which was coded from scratch and is not a descendent of Bitcoin. XMR was launched on April 18, 2014. XMR was launched on April 18, 2014. DigitalNote [XDN] Pang Pinoy. Quick Getaway Trading tips Guide lang po ito hindi po ako nagcliclick ng buy and sell button niyo. Be responsible. How To Use StochRSI In Forex & Stock Trading Stochastic RSI Trading Strategy - Duration: 7:36. The Secret Mindset 25,748 views. 7:36 . Stochastic RSI - How To Identify Over-Sold Or Over-Bought ...