Hello and welcome today i'm revealing five crypto trading strategies to take advantage of the volatile nature of those markets we'll cover a breakout strategy a sculpting one a momentum technique one fading strategy and a reversal strategy so if you could like subscribe to the channel and stick around for the full videoFirst crypto trading strategy is a breakout one with breakout strategies you can identify when the price clears a specified level the aim is to find key levels and to take a long position if the price moves above resistance and enter a short position when the price breaks below supportUsually volatility tends to increase after price trades beyond the key price barrier prices also trend in the direction of the breakout we'll use the true strength index which is an indicator that captures the flow of price action and filters out the noise tsi fluctuates between positiveAnd negative and the center line of the indicator defines the overall bias to find the high probability breakouts we'll focus on the direction of the future trend by analyzing the centerline crossovers a signal to buy is generated when the tsi crosses above zero a signal to cell is generated when theTsi crosses below zero with breakout rates the goal is to enter the market right when the price makes a breakout and to continue to write the trade until volatility dies down that's why we use the true strength index because it incorporates volatility in its calculation the goal here is toUse the volatility to our advantage we'll search for breakouts and we'll confirm them with the bullish or bearish momentum indicated by the true strength index the trade plan is to buy a resistance breakout when the tsi is positive and to sell a support breakout when the tsi is negativeHere we have an example of an upside breakout first we identify the resistance at this level as price broke through this area the true strength index became positive and confirmed the move the breakout also occurs in the direction of the initial trend and this is the exact type of breakout you shouldBe searching for this type of breakout can be found during trends after a trend leg price often spends some time ranging and consolidating before continuing the trend such periods offer great re-entry opportunities if you confirm them with the tsi here this level first acts as a supportAnd then it acts as a resistance once broken the tsi line follows the price action on the chart when price came back to the resistance and rejected the level the true strength indicated a bearish momentum the whole time confirming our short bias in this other example we have a longEntry near a key support level as the price retraces to that area and the true strength index is above zero indicating a strong bullish momentum and here we have another entry following the same pattern tsi is a great oscillator to trade crypto breakouts because it identifies both the trend direction and theStrength of the trend Second strategy is a sculpting one using the smooth haikanashi the smooth hakanashi is a modified version of the regular hakanashi candlestick chart the indicator is used as an overlay on the regular candlestick chart just like a moving average price is in an uptrend when the smooth taikanashi indicator is bullish or greenAnd in a downtrend when the indicator is bearish or red smooth taikanashi is a trend following indicator during short-term uptrends price tends to stay above it in downtrends price typically stays below the indicator the first possibility of a change in direction is when price crosses through the indicatorDowntrends start to reverse when prices cross back up and through the smooth high kanashii while uptrends show signs of reversal when price falls through the smooth taikanashi below it you can use a 10 look back period to be on the right side of the minor market trend when prices are trending higher theSmooth haikanashi will adjust by also moving higher to reflect the increasing prices the opposite would be true when price is trading below the indicator where you would then look for selling opportunities being a scoping setup to increase the probability i like to use a price action entry the good old simple trendline breakoutWhen price breaks a downward trend line then the high canash indicator turns green and price moves above it you get a chance to enter long when price breaks an upward trend line the high canash indicator turns red and price moves below it you look to short the marketHere price moved through this trend line while the drop below the trend line would likely be the first signal for reversal in the short term trend it's important to pay attention to the hackiness indicator to confirm the movement the indicator turned red and price moved below itSo this was a good sculpting opportunity The momentum strategy revolves around trading strong price moves in the direction of the main trend using a price action abc pattern and a macd histogram i've talked about this strategy a few months ago the principle for this strategy is simple in order for a trend to remain active each successive impulsive swing mustTake out the previous swing in an uptrend for example price will often make three points point a is the lowest low point forming a support level point b will be the highest point forming a resistance level point c will be the second low point the support level which must be higher thanPoint a the breakout of price above point b signals the continuation of the uptrend with bullish momentum the entry is simple you buy the breakout of the point b only if the macd histogram remains positive during the formation of the third point point c so make the histogram shouldn't go belowThe zero level here's an example we found point a and the first movement higher is point b this is followed by a retracement that creates a higher low in point c remember point c must be higher than point a we analyze the macd if it remainsPositive we wait for price to take out the recent high of point b as macd didn't go below the zero level it's positive momentum and when price breaks point b then we can safely enter the trade taking advantage of the upward momentum you can also filter signals using aMoving average we have a downtrend with price below the 200 ema so we target a short entry in the direction of the main trend point a is the highest point when price finds resistance point b becomes a lower low point and forms a support level price retraced andForms a lower resistance point c remember that point c must be lower than point a when you spot the abc pattern you look for the momentum condition during the formation of the third point point c the macd histogram remains negative below zero line so negative momentum the price breakout below point b supportLevel indicates that the market is most likely to continue going down Fading is an extremely rewarding strategy to profit from the novice traders that enter the market at wrong prices the aim is to find areas where traders are trapped in the market more specifically i look for bear traps a bear trap appears when the market is apparently going down only to have thePrice reverse and shoot higher this counter move produces a trap and often leads to sharp rallies we'll use the 50 simple moving average for fading the move here's how it works first you need to identify a move coming into support but in an uptrend so lookFor the price to make higher highs and higher lows and search for periods of corrections you look for a breakout below support to trap then office breakout traders then you look for a strong bullish move inside the support level you will use the 50 simple moving average as theFinal confirmation that the bears are trapped and long trades are on the cards so in short you wait a price to close above the 50 simple moving average after a clear breakout to the downside in an uptrend we have an uptrend with the price consolidating in a rangeThe price broke the support and immediately retraced within the consolidation area at this point we only need the price to close above the 50 simple moving average and go long the price took off leaving the trapped traders with short positions below the 50 simple moving average the same pattern here higher highs andHigher lows and the price made a downward breakout against the trend when you fade the market you have only one scenario in your head to go long so you wait for price action to confirm or invalidate the bear trap the wick of the scandal is the firstClue that the market has upward plans once the price closed above the 50 simple moving average you have the uptrend on your side and a lot of traders trapped on the short side eager to get off their losing positions Reversal trading is a more advanced strategy and it requires extensive market knowledge and experience in this strategy you anticipate pullbacks and try to predict their strength using the money flow index the indicator uses price and volume and the concept of accumulation and distribution being quite helpful in confirming trends in prices and warningOf potential reversals in prices crypto traders that use volume in their analysis often look for divergences between volume and price if volume is trending one way while price is trending in the opposite direction it could be a leading indication of an upcoming change in the direction of the marketFor example if the price is making new highs and the money flow fails to make new highs or decreases this is a bearish divergence and can be used as a sell signal if the price makes new lows but the money flow fails to set new lows orRises this would be a bullish divergence and since the money flow integrates volume data into it the divergence between the direction of the indicator and the price could be a leading signal so we look for bullish and bearish divergences between price and indicator we'll enter with the reliable priceAction signal the trendline breakout here's an example the money flow index reached an overbought area we have a divergence between the mfi and the price also look at the location of the divergence where it has formed at an area of resistance and the cell signal was confirmed after the trend line wasBroken to the downside the same setup here the mfi reached an oversold area we have a divergence between the mfi and the price which was formed at an area of support and the buy signal was confirmed after the trend line was broken to the upside it's a more advanced and risky setup butYou can apply a higher risk to reward ratio if you are lucky and trail your stop you can catch some giant reversals If you learned something new please hit the like button and subscribe to stay up to date with our latest releases and check out our academy program if you want to further level up your trading until next time