Discover a Crypto Trading Strategy that Has the Potential to Multiply Your Portfolio by 10x!

Introduction

Today’s just one of those days where I’m just not okay, I suppose. Well, I’ve been shooting for the last three four days non-stop, so markets are down. I’m tired and don’t feel like doing a show, even though I will always do a show. But today, I want to introduce you to my favorite indicator that has never failed me. When I started in this game, I really struggled with chasing pumps and getting panicked out when the market dipped. I ended up being in a yo-yo of emotions every day. I was using tons of different indicators, and my charts were so busy. To be honest, I was probably trying way too hard. But then, something happened that changed everything.

The Journey with Mama Sniper

Something you probably didn’t know is that Mama Sniper and I learned to trade together. We traded every single day and night, and we ended up going through a crazy journey together. She kept me grounded through all of it because my emotions were all over the place. I’d be the Kamikaze that wants to learn everything and be smart, and she would take the gems out of it and balance me. When my mom saw how I was trading with all these indicators and all the noise, she then started to kick my ass, saying, “What are you doing? You’re letting your emotions get the better of you.” Then Mama Sniper reminded me of the Stochastic RSI indicator. She reminded me to keep it simple. She humbled me and brought me back to reality. So, you can thank her for this video. If she hadn’t shown me, I’d probably not be teaching you this lesson today.

Introducing the Stochastic RSI Indicator

The first thing you want to do is jump onto our trading view and load the Stochastic RSI indicator. In order to do that, you want to come up to your indicator section, which is this button over here. Click on that and under the search column, you’re going to put “Stochastic RSI.” You will see the Stochastic RSI pop up. Now, what you want to remember to do is star it so it can fall under your favorites. It’s easy to find going forward. Once you’ve clicked on this button, you will then see how your RSI pops up. It’s a very simple indicator. It may look a little bit overwhelming, but it’s very easy. It is something that just goes up and down in a certain radius of zero to a hundred, and you can just see how it fluctuates like a wave.

The important thing to note is that whenever the indicator is above the 80 line on the right, it is considered to be overbought. This means there has been too much buying, and it’s actually an area where you should be focusing on selling. On the other hand, when the indicator is below the 20 line, it is considered oversold. This means there has been a lot of selling and panic in the market. You shouldn’t be worried about panicking out. Instead, you should be looking at where you can buy.

If you look at this indicator on the actual chart, you’ll soon see the power of it. You can see that in this area from the bottom, we started getting a lot of green candles. The market started accelerating up in one straight line. Then, on the RSI, you could see we came from an oversold position all the way up to overbought. What happened after that? We started getting way above the 80 line, and the market started to slow down and reverse. This shows you that the market was getting too hyped up. There was too much buying, and there was selling pressure coming at some point. If you look at the previous data, you’ll see the same pattern. It teaches you when the market is really run by greed. Don’t jump in because it’s a trap.

Using the Stochastic RSI Indicator for Trading

Now that you have a basic understanding of how to load up the Stochastic RSI tool and what it actually does, let’s dive into the true power of this indicator. I’m going to give you strategies on how to trade with it.

First, make sure you’re on the weekly candles. We’re looking at a very high time frame view. The data I’m showing you here is the last four years of bitcoin‘s price. Four years ago, Bitcoin was around $3,500. If you had bought it then and just held onto it throughout the last four years, you would basically be up by 360%, which is pretty good. But what if I told you that by using this strategy, you could have made up to 1,800% in the exact same time?

On the long time frame strategy, when you are looking to sell, you always want to sell above the 80 to 100 mark. That’s the range you want to look to sell at. As soon as the lines enter the 80 mark, the trigger goes off in my brain that I need to get ready to sell. It doesn’t mean I’m selling right away. It means I’m getting prepared. I need a strategy to get out of the market because it’s starting to get overheated to the top. When the lines cross, that’s when I make sure I have executed the trade.

On the other hand, when we enter the oversold area, which is between 0 to 15%, that’s when I’m buying. I enter the area and get ready to buy. By the time we have crossed those lines, I make sure that I have executed the actual trade.

If we take a look at the last four years and see all the different times we’ve gotten to these areas, we would have only traded six times in four years. That’s right, only six trades. But here’s the amazing part. If you had executed this strategy, you would have turned your $2,000 into over $35,000 in just six trades over the four-year period.

The biggest thing to remember with this strategy is to ignore the noise and the emotions. When the indicator tells you to do something, you do it. Close the laptop and wait for the next signal. Stick to the strategy and ignore what anyone else is telling you. By following a simple strategy like this, you’ll see how consistently you can make a lot of money.

Frequently Asked Questions (FAQs)

1. How does the Stochastic RSI indicator work?

The Stochastic RSI indicator is a powerful tool that helps traders identify overbought and oversold conditions in the market. It consists of two lines that fluctuate between 0 and 100. When the indicator is above 80, it is considered overbought, indicating that there has been too much buying. Conversely, when the indicator is below 20, it is considered oversold, indicating that there has been a lot of selling. Traders can use these levels to make informed decisions about when to buy or sell.

2. What time frame should I use with the Stochastic RSI indicator?

The time frame you should use with the Stochastic RSI indicator depends on your trading strategy and goals. If you are a day trader looking to make quick profits, you may want to use shorter time frames, such as the one-hour or four-hour chart. If you are a long-term investor, you may want to use longer time frames, such as the daily or weekly chart. It’s important to match the time frame with your specific strategy to get the most accurate signals.

3. How many trades should I expect to make using this strategy?

Using the Stochastic RSI indicator strategy, you can expect to make a relatively small number of trades over a given period. In the example provided, there were only six trades made over a four-year period. This strategy focuses on quality over quantity, waiting for the right conditions to buy or sell. By being patient and following the signals provided by the indicator, you can make profitable trades without getting caught up in the noise of the market.

4. Can this strategy be applied to other cryptocurrencies?

Yes, this strategy can be applied to other cryptocurrencies as well. The Stochastic RSI indicator is a versatile tool that can be used to analyze the market conditions of various cryptocurrencies. However, it’s important to note that each cryptocurrency may have its own unique price patterns and behaviors. It’s always a good idea to do thorough research and analysis before applying any strategy to a specific cryptocurrency.

5. Is this strategy suitable for beginners?

Yes, this strategy can be suitable for beginners. The Stochastic RSI indicator is a relatively simple tool to understand and use. By following the signals provided by the indicator and sticking to a disciplined approach, beginners can make informed trading decisions. However, it’s important for beginners to also educate themselves about other aspects of trading, such as risk management and market analysis, to enhance their overall trading skills.

6. Can this strategy guarantee profits?

No trading strategy can guarantee profits. The market is inherently unpredictable, and there are always risks involved in trading. The Stochastic RSI indicator is a tool that can help traders make more informed decisions, but it does not guarantee success. It’s important to remember that trading involves risks, and it’s essential to have a well-defined trading plan, risk management strategy, and a thorough understanding of the market before engaging in any trading activities.