Earlier today I flipped some XVG in about 30 minutes for a 1.45% gain. Below I will show you what I looked at and let me tell you, this strategy is quite easy if you are looking to quickly turn some coins. Now 1.45% is low you say? Well, yes I agree. However if you are day trading, anything over 1% is considered good, 2% is great, and 5% is amazing. Remember, when you are day trading, you are looking to get in and back out as quickly as possible so you can move on to the next coin.
In the picture above, you can see with the blue circles my entry and exit points. I use Trading View with Bollinger Bands, Macd, and StochRSI. Now, when it comes to Bollinger bands, I can see that I am down at the lower band which is considered the support area. Anytime you are near this band, you can expect a turn (not always because a lot of times it will break). To back this up, we see StochRSI indicating an uptrend is forming. Lastly we see the negative trend bars on the MACD starting to become less negative. This is probably the most important part. The best timing for entry and exit is actually when these negative and positive bars start becoming less negative or less positive. If you look at the history, you will see that generally, these bars form hills or dips that are somewhat nicely rounded. Occasionally they will change in the opposite direction but statistically speaking once they start moving in one direction, they will keep moving in that direction until a trend change occurs. Your goal is to identify that change.
In the example here, I saw the change and I set a buy at 690 while it was bouncing between 690 and 692 which quickly filled. My initial target here is 1.1% (1% gain and .1% to cover the transaction fees since I pay with BNB). As predicted, the price goes up over the next 20 minutes or so. Once I hit my target, I start setting stop limit orders to protect my gain. Now I could have stayed on the upward trend however you will see a red candle part way up that triggered my stop limit at 700 for the 1.45% gain. THIS IS IMPORTANT!!! DO NOT BE GREEDY. Ideally the red candle would not have formed and I could have hit a sale around 708 however I needed to lock in my profits because as you can see, it immediately came back down.
If you follow this strategy, you will find that generally you will win on most of your trades. Again, do not be greedy. Also, sometimes you have to be patient. Understand that trends that you are buying into. Know how quickly the coin moves up and down. Some coins can change by a few percent in minutes, others take longer. Lastly, know when to get out in case it goes in the wrong direction. If you see a negative bar that is higher than the one you got in on, you might want to consider selling as that indicates the negative trend is now moving more negative again.
I hope this helps and if you have questions or want more details, please post below. I use multiple strategies when it comes to day trading like this but this is just one of the tools in my trading toolbox. Feel free to post some of your ideas or comments below.
NOTE: I am not a financial advisor and this is just my opinion. Before making any investment please make sure you do your research and fully understand what you are investing in!