Some strategies work in crypto but do not work in stock or other financial markets. Some work well in other markets but not in crypto. This depends on the nature of the market, because crypto is more volatile, so some strategies work more and some do not.
The strategies made for fast markets will work well in crypto. The strategies made for slow markets will not work. For those, you must be in alternate markets. All traders and investors should be active in both markets. You must have accounts in #Stock and #Crypto markets which will help you increase your win percentage.
There is a strategy that works 80–90% in the stock market but not in the crypto market. I worked on this for almost 15 days and tried to find the best solution. I came to the result that this strategy, which I will discuss now, is perfect for stocks. Why? This is because this strategy needs slow market movements and stock is best suitable for it.
In this strategy you will get a range for trading, where you simply have to take long and short trades. For example, I will give from a strong and dividend-giving share in the Pakistani stock market, so you can guess how much it works in stock market.
EFERT (Engro Fertilizer) is one of the strong shares and also gives good quarterly dividend. A share that is fundamentally strong, gives dividend, and has more volume then such share is best for this trading strategy. This is because their is no fake price movement which will stick you to the strategy.
Select timezone first
Mark the starting candle of the day
Short when candle touches the upper line and long when it touches the lower line of the range
One thing very important is time zone. In this strategy, time zone is important. If you select wrong, the strategy fails. Every trader should select the time zone of that stock market in which he trades. For example, I trade in Pakistan stock market, so I will select Pakistan time zone. If you are trading in US stock market, you will select New York time zone and similarly every trader select according to its country.
On TradingView open the stock share. I opened #EFERT chart. According to 1H timeframe, find the starting candle of the day and mark its upper wick and lower wick with horizontal lines. Also draw a vertical line on the same candle, so that in shorter timeframe you can find the starting candle easily.
After this, go to small timeframe like 5 minutes or 1 minute. Look at the vertical line that you marked. From here the real work starts. Very simple but profitable. If you follow these steps, surely your trading will improve. Before trying this strategy, do backtest so you become sure about this strategy whether its working or not.
When any candle touches the upper line, open a short position. For stoploss, use the wick of the previous candle, and keep TP double. That means risk-to-reward ratio should be 1:2. As shown in image, candle touched the upper line, short position opened, and trade was successful. It gives around 1.11% profit.
When any candle touches the lower line, open a long position. Again stoploss is previous candle’s lower wick, and TP is double of SL. As you see in image, again our trade was successful and TP was hit. In this trade the profit is 1.3%.
One more very important thing to keep in mind is to focus more on the 1st and 2nd trades. After that, whatever signals come, either ignore them or take small trades. I have noted that the 1st 2 trades are 100% successful. Ignore the signals which comes in the last hours of the market.
If you want to improve this strategy more, add RSI indicator. When candle touches the lower line and RSI is at 30, then open long position, and the chance of win increases. In the same way, on short side, when RSI reaches 70, open short position. This will further accurate your trades.
This is an easy and simple trading strategy. First, practice this strategy, then backtest, and then trade with real money. This is the secret of success.
I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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IMAGES AND GIF TAKEN FROM CANVA, EDITED IN CANVA
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