This is the third article in our 15 part series.
Ready to see a simple, yet profitable bot setup?
Ok, let’s first lay a foundation.
You do need to know a bit about candlesticks on a crypto chart. To help you out, here’s an image:
Ok, so a bullish candle means the price opened lower and closed higher.
A bearish candle means the price opened higher and closed lower.
Wicks (the thin lines at the top and bottom) show how high and low the price of that specific crypto got during a given time period.
Now, the candles are the same on every time frame. So if you’re looking at a 5 minute chart, then each candle represents 5 minutes of data (same for hourly, 4 hour, etc.).
Ok, understand? Good to go? (If not, a quick YouTube video will set you straight). Here’s a quick 2 minute video from Coinbase.
Now, let’s get into the system:
- Market needs to make a low
- Market then needs to go below that low
- Market then needs to close above the low it previously went below.
When that happens, we now have an opportunity to start our bot. Here’s what it looks like:
This setup is incredibly powerful, yet also extremely simple.
The only thing I would recommend is that you look for this opportunity on higher time frames such as a 4 hour and above.
Using it on a smaller time frame for a bot may not be the best if you’re looking to keep the bot open for a while.
Ok, let’s park it here for now.
In the next article I’m going to give you a few tips to help you pick coins you can profit with when it comes to using bots.
I have been using the BitsGap Trading Bot, and when combined with the appropriate strategy (which we’ll discuss later) you have a powerful tool to make those profits whether the market is going up or going down. To get a free 7 day trial program on BitsGap Click Here.
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