Trading on a daily basis is one way for people to earn money with commodities and assets. With crypto trading, it requires buying and selling of crypto assets either on a short term or on a long term basis. In this post, I will be writing about a strategy to trade crypto on a short time base. Trading, asides from being a way to buy and sell, provides liquidity for the market and this changes is what gives profit and loss as a result of buys and sells.
In this trading, I will be using the Bollinger Bands and this can be done with trading pair. To get the Bollinger bands, click on the indicator and let's get started. The Bollinger band has 3 bands, the upper bands, the middle bands and the lower bands. The middle band is the simple moving average (SMA).
A Bollinger band is a technical analysis tool which is used to discover the standard deviation of an asset price. When an asset prices reaches the top of the Bollinger band, it shows that the coin is being overbought and with the help of RSI, a person can tell the momentum of the market. When the reaches the height of the Bollinger band, an engulfing pattern should be looked out for. The next trade should be depending on the engulfing pattern.