I have written before about Bitcoin Trading Using Smart Volume Spread Analysis way back in 2013. I detailed how Smart VSA is able to handle any chart including cryptocurrencies like bit coin etc. with uncanny accuracy.
Thanks to the meteoric rise and the corresponding interest it generated, a number of clients and visitors to our website have asked again how Smart does on BTC. The following screenshot is not cherry picked or doctored in any way. It was BTC as of the date the screenshot was taken. It uses the v5 Signal validation system which may change upon final launch but will likely remain as it is here. The system is based on the already available methods but is shown visually for ease of explanation.
Bitcoin Trading Using Smart Volume Spread Analysis
The template used on this chart only displays the catalyst signals in Smart. The method used has us enter on two of them (Favorites of mine). Any signals can be used but in order to minimize risk we like to go in only on the signals that will be winners at a much higher rate no matter the instrument.
The Simple Method
Using a very simple method you would have been in the rise and each corresponding dip throughout the chart. The screenshot is of a 30 min Bitcoin chart (BTC) . We enter on the signals denoted with diamonds (Part of the new v5.0 Signal validation system). Exits are done on the reverse signal (entered again) or the shakeout (If short) and the Reverse Shakeout (If long). The dark gray bar is the shakeout and the lighter gray (Solid bar) is a reverse shakeout. Smart is very much adapted to grab moves over and over no matter the chart which is clearly illustrated here. Trade layering adds even more profit (Ask me how) Bitcoin Trading Using Smart Volume Spread Analysis is much easier than you think and because it uses a very special version of Volume Spread analysis , it is rarely wrong.
Draw down using this method is minimal, if at all. This method can be used on any chart of course. I have an article coming detailing a simple signal to signal method similar to the method shown here. Keep an eye out for it or subscribe to our Volume Spread Analysis newsletter and never miss an article or news.
Contact Us If You Have Any Questions or Comments
As always if you have any questions regarding this article, the methods shown, or how Smart VSA can help you, please submit a ticket using the support link on our website. If you would like to start trading Smarter using a much smarter and modern version of Volume Spread Analysis visit our order page. Many clients including one client we wrote about here find a new sense of financial freedom using our software and in some cases such as the linked article retire to trade full time in a very short amount of time. Bitcoin Trading Using Smart Volume Spread Analysis may be the way you achieve that goal.