Crypto Quick Hits: 8 Simple Steps to Multiple Weekly Winners
Cointelegraph Markets Pro gives members access to multiple strategies for finding weekly crypto gainers.
This article explains how to use two overlooked indicators that, based on historical data, have been able to alert traders to potential massive price increases. These indicators can also be indispensable tools for asset discovery.
When these indicators are abnormally high, they justify a closer examination of the assets presented to seek the reasons for the abnormal dynamics of volumes.
Before we dive in, it’s important to understand this point: Cointelegraph Markets Pro is comprised of several real-time, AI-powered indicators that provide members with multiple opportunities to access certain assets before – or just when – where their prices take off.
These indicators can be used individually or in tandem to make informed trading decisions. And that’s why, every week, members can expect to find winning alerts.
The trading strategy discussed below relies on these two often overlooked metrics:
Below are eight simple steps to follow for this trading strategy:
Step 1: Access the scanner and sort by Tweet Positive Sentiment.
2nd step: Look for assets with a positive tweet sentiment of 60% or more.
Make sure to customize the scanner view first, so the positive sentiment of the tweets can be seen. Then click to add the Positive Tweets Sentiment column to the view:
By the way, positive tweet sentiment is the percentage of positive tweets about a cryptocurrency in the last 24 hours. The higher the better, but the goal is at least a 40-60% increase.
Step 3: Look for assets with a minimum of 200-400 tweets in the last 24 hours.
Ignore any high sentiment tokens with very few tweets, as these assets are likely giving a false positive. The higher the number of tweets, the more likely something positive will happen with the price of the asset.
Step 4: Find assets with Tweet volume 50% or more above average.
Tweet vs Avg measures an asset’s tweet volume today against its 30-day moving average, so a value of 50% means an asset’s tweet volume is 50% higher today than it is. it is an average day.
This indicates a significant and unusual increase in the volume of tweets. Such an increase tells us that something is going on with this asset, warning members of a possible breakout in its price.
To investigate these signals, check the alerts using the following steps:
Step 5: Look for divergence with the price (flat or downward moves in the chart).
Let’s take an example with Gitcoin (GTC):
Positive Tweets Sentiment over 60%? Check.
At least 200-400 tweets in the last 24 hours? Check.
Tweet volume at least 50% above average in the last 24 hours? Check.
Now let’s see where the price of the asset is going. It is best if it is flat, meanders sideways, or dips a little.
Step 6: Make sure there is sufficient trading volume!
Gitcoin is a small-cap altcoin, so it can be a bit difficult to find exchanges with liquidity to trade this asset. With smaller altcoins and other more illiquid assets, trading volume is volatile and inconsistent – so be aware of availability and trading pairs.
A minimum trading volume range of around $200,000 to $400,000 depending on the pairs available on the specific exchange is recommended for optimal liquidity, but for smaller altcoins like GTC, the trading volume will be much less.
Step 7: See what the buzz is about on Twitter.
Take to Twitter and find out what’s going on with the asset! Maybe there’s an upgrade, maybe a protocol change, or maybe the company behind the asset has completed a fundraiser.
Read the threads. Get an idea of what’s going on.
Whatever happens, check without guessing. This is part of the due diligence process before taking the final step. This information is vital in determining whether to make the trade, wait and watch, or pass it on.
Step 8: Set up a limit order to take profits at a comfortable rate of around 5% to 10%.
After – and only after – checking the alerts by following the steps above, remember to set up the trade to take profit. To beat the current rate of inflation, an easy to use figure is 10%, but that’s up to each member to decide. By setting a limit order to take profits, one can guarantee a successful return on every winning trade.
By following these eight simple steps, Markets Pro members can find multiple weekly crypto gainers based on the Unusual Twitter Volume and Unusual Trading Volume indicators.
This is just one of many solid trading strategies that members can take advantage of by customizing their alerts through the Markets Pro platform.
look how Cointelegraph Markets Pro provides data on market developments before this information becomes public.
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risks, including the risk of permanent and total loss. Past performance does not represent future results. Figures and graphs are correct at the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making any financial decisions.
All quoted returns are accurate as of January 31, 2023…
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