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[ FREE FOR ALL ] BTC – update 19/07/21

BTC price movement benchmark

Welcome to PipEze daily BTC report.

For almost 2 months now we can see BTC moving sideways. Those who considering shorting Bitcoin should be happy as descending triangle pattern is showing on the chart. According to technical analysis, this market formation showing future downtrend. Descending triangle is usually continuation patter but at this position on the chart it could mislead.

Tradingview BTC

Luckily we have PipEze Price Movement Benchmark. 1D chart for a long time has been signalling decreasing selling power. Higher dips are not corresponding to constantly lower price. What’s more important, signal line (thin one) is moving up and trend line (thick one) is on a positive side of chart for a first time in the last 10 weeks. Green Buy area is tiny, which could mean that there are still not enough buyers on the market.

BTC price movement benchmark

Quick look on 1H chart shows us potentially very strong Sell signal and incoming price drop during the day. Looks like descending triangle is correct. If signal line cross trend line downwards it will be confirmed Price-Down signal. For now, it looks like there is a good chance for quick short sell.

btc_1H

Those of you who subscribe to Trader package could enjoy yesterday solid Price-Up signal and make yourself richer of $250.
Please follow closely all hourly signals which are posted on Trader channel. Those signals provide good indication of price trend change.

Well done everyone.

Any questions just drop us an email.

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The information contained in our publications is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any securities. Our publications are not, and should not be seen as, a recommendation to use any particular investment strategy.

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Phenomenon of HODL – how to improve most popular trading strategy.

If you are cryptocurrency trader, you most probably have heard word HODL. Well, it used to be a word or more precisely call to not to sell any coins. Nowadays, HODL became trading strategy and those who use that strategy are Hodlers. Although financial market is very large and you can trade virtually everything, most Hodlers are crypto traders. Why is it that this strategy is so popular among cryptocurrency fans?

To understand this phenomenon, we have to go back to 2010 when a guy called Jeremy Sturdivant sold two pizzas for 10000 BTC. Back then, in May 2010,  10000 Bitcoins were worth $41. Crypto market in a today’s form didn’t exist in 2010. People made trading through internet forums where they had to agree on value of Bitcoin. Yahoo Finance BTC historical price goes as far as September 2014, which was around $400. TradingView is similar – earliest available price is from December 2014. In 2010 no-one even dreamt that Bitcoin will be worth over $1. Going back to Jeremy Sturdivant and his 10000 BTC, we can slowly see why HODL strategy is so strong. If pizza guy would keep his crypto he would turn his $41 in to $320,000,000 (as on 14/07/2021). IF he would HOLD his BTC…

To visualise price difference between common asset, like Apple stock and BTC, let’s look at the chart below.
From 2010 till today Apple stock price barely lift off from 0. To be more specific it went from $9 to $144 while BTC went from $0.004 to $32000 (as on 14/07/2021). The difference is astronomical.

HOLD - btc vs apple

HODL as a trading plan.

When you realize that the only thing which you have to do to make that gigantic profit is HOLD, you know becoming rich is as simple as 1-2-3. Anyone can HOLD; HODL I easy; HODL doesn’t require any special knowledge or qualification. When you are HOLDing, you know you are becoming rich almost effortlessly. Suddenly you realising that all those stories about overnight fortune are true because you are one of that stories. Or maybe not?

As much as I would love to believe that HODL is a great trading strategy which will make you tons of money, I have to say I disagree. Let me explain why I think HOLD is a recipe for disaster.

The easiest part of trading in financial market is opening a position. You can do it anytime as long as you have money to spend and internet access. One press of the BUY button and job done, you have just become HOLDER. Now you have to hold and watch your investment growing. If it happened, you entered at a good moment you soon see more and more money on your trading account. Ok, so where is the bad part of holding? Well, the bad part is to close your position and walk away with profit.

Most of crypto traders are people without specific or complex trading plan. They usually know about trading as much as people they follow on Twitter, Reddit, Facebook or YouTube. They open position when everyone is shouting Buy The Dip and never sell because everybody is screaming HODL HODL. Only after they miss the top and find themselves in another bottom, they can’t sell because they lost most or all the profit they made. Usually they HODL for so long they losing initial investment and walk away with nothing but pain and humiliation.

Becoming HODLer is like placing yourself among an ever-growing group of people, which are opening Long position every day and want to close it once money is doubled or tripled. This creates situations where people who entered market a month ago can’t leave it because people which entered week ago or yesterday screaming and shouting HOLD HOLD. They are convincing other members of the group to not to liquidate position because price will go higher.

HODL vicious circle.

How it works :
–  You enter position when HODLERS are shouting Buy Buy.
– Once you’re in You shout HOLD HOLD because price goes up.
– When you are at the top HODLERS are shouting HOLD HOLD expecting the price to go higher.
– Market is crashing HODLERS are shouting HOLD HOLD believing that they are controlling the price of crypto and as long as they don’t sell, price can not drop.
– Then comes the dip so HODLERS are screaming BUY THE DIP.

At this point, most of them (holders) already lost all profit and often lost part of initial investment. Now there is nothing else to do but start the cycle again.

HODL strategy infographic

Improving trading strategy.

Holding strategy is missing one important stage- SELL. There are no Holders which are brave enough to close position and enjoy profit. Holders believe in never ending price rise but what’s worth noting is the fact that there were never financial assets which didn’t stop growing in value.

So how can you improve most popular trading strategy? There are two points which you should add to your trading plan:

1 – close your position once you made sufficient profit

2 – close your position once you lose too much of your initial investment

 

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How to install aftermarket MT4 custom indicators

MT4 custom indicators - how to install

MT4 custom indicators are the trading tools that you can buy inside or outside the MQL5 market, or you can build it yourself. In some cases, aftermarket indicators are better than official ones because they are made to fit a specific trading strategy. If you bought an MT4 custom indicator, make sure it has the correct file name extension ( part of the name after the dot ). It should be ”.ex4”.

Ok, let’s see how to install it on your MT4 platform.

Step 1

If your indicator came inside zip file -unpack it and save it into a folder in Desktop. If it came just as .ex4 file, place it in a folder in Desktop for easy access.

check if mt4 custom indicato has .ex4 extension

Step 2

Open the MT4 platform and navigate to the top panel. Find a MetaEditor icon.

finding MetaEditor icon on mt4 platform

Click it, and another window will open on your computer.
This new window is called MetaEditor.

metaeditor window opened in mt4

Many traders are not familiar with a code editor, and that is fine. After all, you are using MT4 for making money and not for software development.

Step 3

Now look on the left. You should see a directory of folders. We are only interested in a folder called Indicators.

locate folder Indicators and open it in new window

Right-click with the mouse (or trackpad if using a laptop ) and choose option – Open Folder.Another window will open. This new window is a place where you paste your custom indicator.

copy-paste your new idicator into indicators folder

If you finished coping, please go back to your MT4 platform.

Step 4

Now the only thing left to do is to refresh the list of indicators. Right-click on Indicators label and choose Refresh option.

refresh list of indicators

That’s it. You should see your custom indicator among other trading tools inside the Indicators folder (alphabetical order).

Finde indicator on list and activate it with double click

To use your new indicator, double click on its name or drag and drop on the chart.

 

indicator implemented into chart - ready to use

The indicator used in this article was HMA – Hull Moving Average

 

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How to test indicator – MT4 strategy tester.

Whether you trading for a living or just to make extra cash it is vital to have proper trading tools that will support your trading strategy.
Buying indicator is a challenge because first we spending money on something which meant to help us to make more money, and second, we want a trading tool that we can trust. Continue reading How to test indicator – MT4 strategy tester.