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Catch Low - Exchange for Higher Price Going Sideways
We were looking for signs of weakening of this uptrend For Bitcoin. I suggested you look at the crossing of the price below the moving average (9) on a timeframe of four hours. With Coinrule you can buy low and sell high with price going sideways.
The price started to move sideways building a pennant, that in the end broke on the downside.
I am looking at the 15 minutes, and actually, we can see that after losing momentum price started to drift on the downside slowly.
So how to take advantage of this setup?
Let’s go now on Coinrule, where I started a rule on Kraken. It traded multiple time selling high and buying low.
Let’s see how I set up this rule.
I wanted to sell part of my Bitcoin when the price has an increase of 0.5% within five minutes. This part is important because that gives me the possibility to follow how the price is going, as the price reference changes every 5 minutes to calculate the price change based on the new price.
You may also want to add another condition to make sure that the rule sells only if Bitcoin’s price is below a certain threshold. If the price clime above that price, maybe that could invalidate our thesis that the price is sliding lower.
After selling I am going to buy back the coins when Bitcoin drops 1% from the price at which I sold.
In this way, I know that I am going to sell on price increases, but only if the price stays in that scenario of sideways moves. The classic strategy “Buy Low – Sell High” works very well with price going sideways.
If the price increases above 7400, then I’m not selling because maybe I’m expecting another scenario that I’m going to manage with another rule.