Welcome to Ninja Crypto Trader.
Today we’ll be taking a look at another scalping strategy that you can use for your cryptocurrency trading.
Now this best 5 minute scalping crypto trading strategy can be used on different time frames but as we’re focusing on the scalping aspect we are going to be using the five minute time frame for the bitcoin us dollar chart.
So let’s get into this strategy.
It involves the use of three different indicators.
So first of all we’re going to put in two exponential moving average indicators of ema so we want to put in two of them.
Now one thing you need to note is that the exponential moving average is different from the simple moving average because it focuses more on recent prices.
It puts more weight to recent prices so the lines of similar length ema and sma will be very different.
So for the first ema we are going to change the length to 20, then we’ll make it yellow, full opacity and make it a bit thicker.
So we have the 20 period ema here, this yellow line and for the second ema we are going to change the length to 50, change the color to blue and make it a bit thicker. So there we have them the two exponential moving averages.
Now as you remember from previous videos is that the moving averages are mainly used to show trend and when you have a 20 period and a 50 period when the 20 period is above the 50 period when an uptrend and when it’s below the 50 period in a downtrend as you can see from here the 20 period crosses below the 50 period and we go into a downtrend.
Now we will always trade with the trend, never against it and that’s why we have this too, trading against a trend is never recommended!
These two are going to be used to show us and or guide us in our trade in this strategy.
Now the next indicator that we’re going to use is known as a williams fractal indicator.
So come back to indicators and type in williams and it’s here williams fractal.
So before I go into explaining exactly what this indicator shows, let’s just make some changes to the style we’re going to make the up fractals the above bar fractals as red and the below bar fractals as green and I’ll explain why we’re doing this shortly.
So once I zoom in you’re able to see this green and red arrows above and below different candlesticks so what the williams structure shows you is that it shows you an extreme point in a set of candles compared to the candles around it. It gives you the most extreme points of those candles and will show an arrow to show these extreme points so what this basically means is if you take this candle here for example which has a red william structural indicator above it it’s showing you the most extreme points compared to the candles around it so compared to these three candles here and these three or two two it’s showing you this is the most extreme point and the same goes for the arrows below. They’re showing you the most extreme points from the candles around that specific candlestick.
Now this indicator is used to show different things it can be used to determine your stop loss levels or your support and resistance levels but in this strategy we’ll be using the williams fractal signal to give us entry points for our trades.
Bearish indicators or various signals are usually above the candle and that’s why I made it red so it follows up with how bearish signs are shown like the way the bearish candlestick is red.
I made the bearish signal red and the bullish ones are green just like how bullish candlesticks are green.
So these are the three indicators we will be using to make our strategy and find our potential entry points.
Now how do all these three indicators come into play?
When we are in a downtrend which will be shown by the interaction of the 20 period and 50 period ema
We want to see bearish williams fractal signals and when we are in an uptrend we want to see bullish williams structural signals.
Remember that we always trade with the trend.
So when we’re in a downtrend we want signals that are showing us a short position.
When in an uptrend, we want signals that would signal a long position but one thing you have to note about the williams fractal which is very very important for this strategy is that as I said the williams structural signal is comparing the most extreme points compared to candlesticks around that specific candlestick so one thing you need to note is that it does take two candlesticks for the signal to appear.
Because it’s comparing the candles around.
So if we take an example of this candlestick.
Here we won’t see this red arrow till this second candlestick closes.
So when this second candlestick closes it will appear and also for the bullish ones once this second candlestick closes it is when this indicator arrow will appear.
So keep notice of that as we now get into how to find our entry points for long and short positions.
So for a long position what we want first, we need a point where we are in an uptrend.
So let’s take an example of this point right here.
So first of all, 20 period ama above 50 period ema, good we are in an uptrend.
Now we want this signal to be between the 20 period and 50 period ema this signal here that is one very crucial thing and also as I said it takes two candles to form.
So we count one two and your entry point will be here.
Now you can place your stop loss at the 50 period ema or you can use support and resistance analysis for the long position.
A support analysis to find your stop-loss point your take profit point will also depend on your support and resistance analysis.
Now for a short trade it’s the inverse.
What we’re going to want is for the 20 period ema to be below the 50 period ama to confirm we are in a downtrend and once again we want the williams structure between these two emas.
So as you can see here our entry point will be here and as you can see price dropped in the next 10 minutes so this it.
It is always not a hundred percent accurate as always no trading strategy is 100 accurate.
But it can be used to really give you really good entrance signals for potential trades.
So you feel free to try this strategy add a few other forms of technical analysis or indicators to find even better entry points using this strategy.
Now for one question that you might find yourself asking is if you do find a point where you have gotten into a trade and you see another signal shown by the williams structure in that the trade is going well you’ve got an in and you see it’s still going in the direction you want.
Should you get into the trade again now that is completely up to you and your risk taken.
How you’re going to handle the risk because the more you put in the more risky the trade becomes.
So that is the end of this strategy now if you like the platform that I’m using in this video it’s known as Bybit and you if you want to go ahead and trade cryptocurrency on Bybit you can do so by clicking this link, if you don’t have an account is Bybit new users get a free bonus on their first deposit.
So go ahead and click that link to start your trading journey on Bybit and if you enjoyed this video please hit that like button and for those on you don’t forget subscribe and hit that notification bell so that you never miss out on more awesome trading strategies and by this I’m signing out.
