Hey Steemians I'm back! I've been on a long break trying out different trading strategies to build my crypto account. Some were scams, some were too complicated, some only worked some of the time...... Phew, it was exhausting. So why am I back now? Well I wanted to offer something of value that I have tested and found consistent which would also be relevant to the Steem community. Something I can write about regularly to keep you all updated.
I'm happy to say about 3 months ago I found the method taught by @quickfingersluc (QFL). After learning and testing, I can honestly say this has given me confidence that it is at the minimum 90% accurate on most coins (the losing 10% was always my own FOMO, FUD and mostly impatience lol), although here I will concentrate on Steem and looking at the Steem chart so we can daily watch the chart and see how this works.
Main Points For This Strategy
We are looking at hourly candles on the chart within at least a 2 month period and trying to find where there has been a big bounce UP within a short time or the price has been going sideways and continuously testing a support line.
When there has been a bounce we draw a line at the bottom of the bounce. That becomes the new “BASE”.
Now we wait for the “base” to be broken by a candle during a panic sell. A panic sell is when the hourly red candle suddenly drops below the base and continues down in the next few candles.
Once the price is below the last “base” price it is safe to start buying as within a few hours / days it will return to the base at which point we already have a sell order placed.
Now we should wait for the price to be at least between 5% or 10% below the base to start buying. Our first buy will be a small one (a nibble as Luc calls it) and allowing for it to drop lower so that we can double our first buy amount if it does go down.
Once our buy order has been filled we can set a sell limit order at the price of the last base (or slightly lower to be safe) and now just wait for the price to hit that order. Alternatively, we can just sell the same amount in Bitcoin or Eth (whatever we used to buy the coins) and keep the profit in “free coins”. This is where accumulating the free Steem comes in!
So that is a very simplified explanation of the main points and there will be much to discuss in later posts but here is the current Steem chart showing how safe these trades are.
Green lines = Bases which have been successful (extends to where the sell order would have executed)
Yellow lines = Bases which have not been broken by the price going lower.
Grey box = Just one example on this chart of when the price fell below the last base (green line) and returned to it within 3 days netting a profit of around 20%. Anywhere in the grey box would have been a “safe” buy.
As you can see any purchases below the last base would have been a success!
My aims are to keep an eye on the daily Steem chart and update the current base, whether it has been broken or has been respected and we are waiting for a new base. Also to discuss the details and ideas for accumulating free Steem using this method and whether we can use it on Blocktrades without moving our Steem to an exchange!
I hope you will follow my posts, vote and all that! We will see how successful this method is or if not please remember that I am not a financial advisor and any trades you take using this method are at your own risk.
I have much respect for Luc and always come away with more knowledge after watching his videos. Upvoted and followed you @ladycrypto! @bitsy
Great! Thank you, will follow you too. Always good to meet other QFL'ers!