In this video I’m gonna show you how to find the best cryptocurrency to invest in using parallel channels.
I recently used this exact strategy in for my own trading to make a great profit on this move in Factom!
I’m Doug, the founder of digitalcurrencytraders.com, a cryptocurrency trading course and community, where thousands of people from 70 countries around the world have come to learn how to trade cryptocurrencies.
In this altcoin trading for beginners tutorial - you going to learn the only three things you need to know about using parallel channels to identify great crypto trade signals. This video will help you find a perfect time to buy and exactly when to take your profits.
Keep reading - or watch the video above!
When I was just starting crypto trading I found myself jumping in and out in and out of trades way too often. Even though I had a basic altcoin trading strategy I was trying to follow, I found myself constantly watching the price charts... always thinking the price will go higher and I didn’t want to sell out.
Maybe you have invested in some of the best cryptocurrencies and saw some fantastic gains, but you didn’t take profit at the right time and you saw your gains dwindle away...
Needless to say this is frustrating.
I knew that cryptocurrency projects would be changing the world - and I saw the prices making dramatic moves.
- Sometimes I took profits to soon and saw the market go up without me
- Sometimes I held a profitable trade until it turned into a small loss.
- sometimes I didn’t take the small loss, and it grew even bigger.
I learned the hard way when I should cut my losses and when I should take my profits.
Being a bag holder and waiting for the market to eventually come back up is not a good investing strategy, trust me
Flash-Forward to today and I’ve learned to focus on only on the best altcoin trading strategies - as a result my trading is more relaxed, profitable and consistent.
My secret?
I learned everything I could about identifying the top undervalued cryptocurrencies by watching the charts for simple patterns that repeat over and over again.
Unfortunately most of the advice that I originally found was complicated and contradictory - it didn’t work for me. You know the trading advice I’m talking about, Elliott wave principles, Fibonacci retracement, Fibonacci extensions, Bollinger bands, momentum oscillators, market cycle trading, linear regression curves… and the list goes on.
Sure that stuff can help, but it’s not gonna rocket your bitcoin or altcoin trading to the next level quickly and easily.
Why?
Because many of these methods don’t agree with one another, they are over-complicating something that’s actually quite simple, and this causes all sorts of fear, uncertainty and doubt (FUD).
After following the popular crypto traders on tradingview and getting nowhere, I decided to try experiments myself. And that’s where I learned what really works and how simple it really should be. Specifically I discovered a few simple chart patterns that work consistently to find the best altcoins and tokens to trade.
These are simple trading methods that most people overlook.
Once I focussed on the strategies, there was no more second-guessing my entries and exits, and no missing out on important direction changes. I started being more relaxed and my trading, and started to make far better profits - much more consistently. I now it’s time for me to share this incredibly simple method of using parallel channels - show you exactly how to use them to help improve your crypto trading success and profits. Starting today.
Let’s start with step number one, how to draw a parallel channels correctly
You may have noticed that cryptocurrency prices often move in a strong direction, then pull back, and then surge in the same direction again.
Why?
Well it’s often because news comes out and travels across the social media sphere quickly - and then prices retrace as people are either taking trading profits or selling their cryptocurrency mining earnings. Over and over again these waves will happen as the market is trending one direction or the other.
Even though these waves of movements are important, it’s not nearly as important as the trend that they are following. That’s because the big money is made in staying in the trade until the trend is finished. If you try to jump in and out on every wave, you end up missing the big move - and worse, you spent too many hours watching the bitcoin price charts, fretting and worrying about the markets!
Have you ever got up in the middle of the night to check bitcoin prices on your phone?
This strategy will help you sleep better!
The more you understand about parallel channel lines, the more relaxed you’ll be as your cryptocurrency price chart is making waves of movement. Instead of feeling panicked every time the market changes directions, you will have a clear vision of when it’s really time to take action You’ll have a better idea where to place your stop loss orders and it will be easier to know when to take your profit and look for another opportunity!
Let’s dig in now and I’ll show you exactly how to use this tool on four different examples. As I said longer trades tend to make more money because the capture the entire trend and not just one of the waves with in it
But there’s one big problem with this approach.
You have to be willing to give up some of your unrealized profits for the potential of making even greater returns
Fortunately my experiments have taught me if you get these parallel lines drawn early in the move - do you have a better idea about the right time to close your trade and take your profits
In fact if you focus just on three points in the chart you can maximize your profits over time The question is how do you identify these points earlier in the set up of the trend? The answer is called the 1-2-3 bottom formation!
Here’s exactly how it works
The first step is to watch for when prices come down to the lowest price in the recent time frame. This could be the lowest price of the week, it could be the lowest price of the past few months or it may even be the lowest price of the day!
The second point is - after the price has risen off this low point, gained some ground - but then the price rise pauses and prices pull back... And then, after prices begin to rise again from this pullback spot, we have all the information we need to draw our parallelled trendlines!
It really is that simple.
When I first started having success in trading cryptos - I was always looking for the 1-2-3 bottom formation, but it still wasn’t as clear to me when I should take my profits! Now that I’ve added the parallel channel to my entry method, it’s much easier to identify when to get out of the market, and gratefully take the profits! Now I cut out a lot of the worry and second-guessing, and I have a plan that lets me know exactly what to expect.
Alright, now it’s time for the proof.
Let’s pull up some examples of how this has worked in very recent crypto price charts. I’m certain that in the next few minutes you will completely ‘get’ this technique and be able to use it today in your crypto trading - and from now on!
Not only are you going to be better at finding the best cryptocurrency to invest in, you’ll also have a handle on when to take your profits! You will feel the accomplishment and the gratitude, and move on to find another opportunity with even more confidence in your ability to identify great crypto trade signals and make your money work for you!
And after these four examples I’m going to share an extra tip that will help you identify these patterns with even more certainty! In the video above, we take a look at link coin, civic coin, basic attention token and Genesis vision token as an examples of using parallel channels to help develop the best altcoin trading strategy.
OK now it’s time to share that extra piece of information that will help boost your success rate when using the simple trendlines to improve your altcoin trading profits. It is one indicator that I recommend for crypto trading because it gives simple and clear signals that really match what’s going on inside the parallel trend lines.
And that is Trading Cryptos with the relative strength index. Click on the link to take a look at how the RSI adds extra confidence to cryptocurrency trading.