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Cryptocurrency Trading Notes > Chapter 11: Cryptocurrency Trading Strategies > Flashcards

Chapter 11: Cryptocurrency Trading Strategies Flashcards

1
Q

select a _______ Crypto exchange + currency

A

reliable

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2
Q

start by investing in currencies with high _______ caps (e.g., Bitcoin, Bitcoin Cash, Ethereum, Ripple)

A

market

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3
Q

resist _______

A

FOMO

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4
Q

set up a strategy that enables you to take profits at regular _______

A

intervals

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5
Q

use a ________ loss when you set a price at which you’ll sell a currency in the event that it decreases in value

A

stop

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6
Q

seek out project ________ that outline the functionality and goals of a particular cryptocurrency to begin doing fundamental analysis

A

white papers

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7
Q

among the best indicators include: Moving Averages, _____, TD Sequential, Williams Alligator, Ichimoku, and Stochastic Oscillators

A

RSI

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8
Q

For RSIs, the following signals apply…

A

< 30 (long signal)
> 70 (short signal)

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9
Q

RSI is used to measure the speed, change, and ________ of price movements

A

strength

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10
Q

RSI also indicates when assets are overbought or ________

A

oversold

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11
Q

EMAs are _________ moving averages

A

weighted

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12
Q

if you’re a short term trader, you can benefit more from a _______ moving average

A

short

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13
Q

long term traders or investors can benefit more from a long moving _________

A

average

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14
Q

moving averages are expected to serve as a form of _________ and support

A

resistance

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15
Q

you’ll gain a _________ resistance or support if you use a long time frame

A

stronger

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16
Q

at least ______ moving averages are required for crosses

A

two

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17
Q

one of the moving averages should _________ the other in length

A

exceed

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18
Q

a short moving average crosses above a long moving average

A

bullish trend

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19
Q

a long moving average crosses above a short moving average

A

bearish trend

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20
Q

you can also use the moving average to set a stop-loss level or plan an ______ point

A

exit

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21
Q

It’s optimal to use ________ averages along chart patterns

A

moving

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22
Q

The ________ strategy reigns supreme among cryptocurrency traders

A

MACD

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23
Q

MACDs may show you a visual representation of a _____ strength

24
Q

Bollinger Bands’ ________ simple moving average can be used as a trigger for short and long signals

25
BBs are used alongside candlesticks, ______ patterns, and other technical indicators
chart
26
the deviation lines narrow or ________ based on the significance or volatility of the price action
widen
27
whenever the bands tighten, volatility ______ and signals a volatility surge
drops
28
approx. _____ per cent of all price actions actually takes place within the bands
ninety nine
29
Parabolic SAR [?] is an indicator that inserts a series of dots below or above the price action
Stop And Reverse
30
Parabolic SAR focuses on the price, as well as functions as a useful trading tool since it's a _________ indicator
lagging
31
you'll have to wait until the 9 buy or sell _______ becomes perfect if you choose to use it
signal
32
when that occurs, you can take out a ________ or long trade
short
33
very useful in calling the bottoms and tops of cryptocurrencies
Parabolic SARs
34
if you choose to go with Bitcoin, you have to use a strategy that consists of 15% Crypto trading + _____ per cent price action
85
35
you should ideally use the OBV (?) indicator
On Balance Volume
36
OBV is specifically recommended for _____ trading Bitcoins
day
37
_______ can help analyse the overall money flow in and out of instruments
OBV
38
OBV makes use of a combination of price ______ + volume
activity
39
if a cryptocurrency trades up at the same time OBV trades down, people sell into this rally, which indicates that the...
...upside move will not be sustained for long
40
it's essential to see the OBV going in the _____ direction as the price of Bitcoin
same
41
First Rule of Bitcoin Trading
your chart setup must consist of three windows to represent each of the three charts: first for Bitcoin, second for Ethereum, third for OBV indicator
42
Second Rule of Bitcoin Trading
Search for Smart Money Divergence between Bitcoin value + Ethereum value
43
Third Rule of Bitcoin Trading
Search for the OBV to increase in the trend's direction
44
Fourth Rule of Bitcoin Trading
Put a Buy Limit Order on the level of resistance to catch possible breakouts
45
Fifth Rule of Bitcoin Trading
Place a SL below the breakout candle and then take profit when the OBV reaches 105,000
46
smart money divergence
results when one cryptocurrency acts against another cryptocurrency; typically means that there's an inconsistency between the two cryptocurrencies or one of the coins delivers false results
47
OBV displays if real money buys or sells ______
Bitcoin
48
helpful to see the OBV increasing in the trend's ________ if Bitcoin is not breaking above the level of resistance
direction
49
once you receive a green signal from the OBV indicator, you must place a buy ______ order
limit
50
this reading signifies a _______ in the trend
pause
51
have diverse ______ among various coins
trades
52
emphasize reduced trading _____
costs
53
consider your ________ when planning out trading times
schedule
54
set up notifications for new developments or news on the top ___________
cryptocurrencies
55
begin with a profit ratio of ______
2:1

Cryptocurrency Trading Notes (14 decks)

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