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16 फ़रवरी 2022

xSignals and Binance: fast profit on Litecoin

xSignals and Binance: fast profit on Litecoin

Cryptocurrency scalping does not require complex strategies. It is enough to know how to trade on Binance, standard indicators, and confirmation from the xSignals service.

Strategy characteristics
Type: Trend.
Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset: Any crypto active. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: 24 hours / 7 days a week.

The Binance trading strategy uses two basic technical indicators:

  • EMA Cross. The trend indicator indicates a possible price reversal. The price above the Moving Average is a continuation of the uptrend. Below is the downtrend.

  • Stochastic (StochRSI). Determines the market overbought/oversold. It is a combination of two standard oscillators: the Relative Strength Index (RSI) is determined first, and then Stochastic is calculated using it. This allows you to additionally remove the market "noise" of Binance trading, to confirm the reversal more precisely.

After installing the tools, the terminal's working window looks like this:

The signals are simple even for beginner traders. We open the position 2-3 candles above/below the EMA Cross. The oscillator must exit the overbought/oversold zones.

When the StochRSI moves between the 20/80 levels and the price bounce from the Moving Average, you can open trade to continue the trend. In this case, it is important to confirm the signal from xSignals and the presence of a trend on higher timeframes. Cryptocurrencies are very volatile during the day, after 1-2 profitable trades "on-trend" on any Binance strategy, it is recommended to stay out of the market and wait for the next reversal!

Recommendations about use …  

  • We trade on Litecoin. The currency is consistently in the TOP-5 in terms of capitalization and trading volume, although it is “in the shadow” of Bitcoin. As the practice of trading on binance has shown, it is more "technical" than Bitcoin. You can additionally use volume indicators, but the classic "Moving Average + Oscillator" combinations work better on scalping.

  • The second currency of the pair is Tether (USDT exchange ticket). According to the creators, this StableCoin has a real (fiat) backing in the US dollar. This allows traders who have previously worked in the Forex market and stocks to calculate the position volume and profit level faster. Without additional conversions inside trading on Binance.

  • Trades are opened "on the market" without setting Take Profit/Stop Loss levels, closed manually. If the profit does not increase within 5-10 minutes after opening, close the position. Also, follow the strict money management of Binance margin trading - the transaction is not more than 10% of the current deposit. Possible Take Profit, not less than 10-15 points, Stop Loss after the last local max/min.

Summarize…

Trading on Litecoin is a good variant for traders with a small deposit. Even the large leverage of Binance trading will allow you to stay in the market for a long time. The main thing is to take into work only reliable signals with confirmation from xSignals.