Entry point for BTC based on momentum reversing out of the bear market. For those trading on confirmation and solid risk reward ratios.
Find a safe bottom, not necessarily the lowest price.
Strategy
1. The major buy signal comes when the first Heikin Ashi 1M closes green. (This was once printed in June 2014. But a high RSI would falsify the signal trigger)
2. Looking deeper into the MACD . We want to see a shorter Histogram close in the monthly. (Where a histogram peak is formed)
3. This is usually confirmed by a healthy sign of the Stoch RSI closing blue over orange.
4. If you're even more conservative. After the signal, I'd wait for an spike in volume.
Notes.
- My personal prediction is that BTC falls 85% towards 11k. However the strategy is triggered at a price the market has decided. The most important part is the risk adjusted return.
- The strategy is best aligned to Lump Sum entry.
- The histogram will peak. It's a matter of when. Therefore I'm not interested in the price.
- I suggest replaying BTCUSD in past cycles on standard bars to see how the bars are printed. (H-A won't work on replay)
- The strategy only has 2 major data points. I'd prefer 3. But the higher time frames install greater confidence.
Tickers and Indicators.
- BTCUSD INDEX 1M, HeikinAshi.
- RSI and Stoch RSI .
- MACD with histogram.