There are many technical indicators that might help us to get ride in the market just like RSI which can be our scale in getting the volatility of the coin and MACD, which can be also a signal for trend reversal. But I have also one strategy and I want it to share with you guys. So, what it is all about?
AOTS o Alignment of the Stars
This is one of my indicator in buying and selling a stock or even a coin. Usually, I am setting my buy entry and vice versa with this strategy. It is really easy to do and use this strategy. But how do we use it?
Step 1. Search for the Moving Average in Technical Indicators. Set-up 3 Moving Average, you can set them in different colors so that you will not confuse.
Step 2. When you searched those MA, set them all in 20, 50 and 100 MA's. It's up to you on what color you wanted to set but for me, I have my own pattern. The Red line is 20MA, the blue line is in 50MA and 100MA for the violet line.
Step 3. The three lines of Moving Average will appear in your screen. Once, there will be an order or arrangement between 20, 50 and 100, we will know that it is already an AOTS or Alignment of the Stars. And here is the tricky part, we should see that the candles are already on the top rather those MA lines. In order for us to verify that there will be an uptrend or downtrend.
You can see some example below:
20 Moving Average
50 Moving Average
100 Moving Average
Step 4.When you see that it formed an AOTS in the chart, you can now buy a coin. Buy for the first breakout of the coin like in my example. I bought the ETH when it broke the 9K pesos or 176.4 USD before. I conduct frst a test buy because I thought it was a bull trap or it may a sign for a skyrocket of ethereum. But when it broke the 9500 pesos mark or 186 USD, I poured already all of my money from it. And I took profits during that time.
It is clearly to the chart that there had been a bullish when AOTS or Alignment of the Stars hit. However, there is also called Inverted AOTS. It happens also when a certain coin or stock is having a fall down. When 100, 50 and 20MA are also aligned. In short, we can determine if there will be a bull run or down trend because of AOTS. But take note, this is just one of the indicator that you may set in order to know if there is a bull or bear. It is not all time that this indicator will help you or it is really an accurate principle. We should also use 3 to 4 indicators for us to have assurance that our execution will become profitable.
I hope it will help you even in a small amount.
Post Scriptum
I captured those images in coins pro since I am trading in coins pro. And lastly, eth/php is the market that I used. Let us all take profit and be ready for bitcoin halving.