Automating Ichimoku Cloud To Trade Bitcoin
Cryptohopper Newsletter
Chart
The Bitcoin price has had an astonishing beginning of the year. Currently, it has increased over 40% but it has even reached more than 55% when the price tested $10,500. The bearish medium-term trend that Bitcoin was having after reaching $13,800 in June seems to be over with this bull run. The third Bitcoin halving can be having an influence on the price.
For this week’s analyses, we have selected a brand new indicator in Cryptohopper, the Ichimoku Cloud, a trend indicator that is proving to be highly effective in long time frames.
Let’s dive a bit deeper in how it can perform in the BTC/USD market!
Designing your automated strategy
The Ichimoku Cloud was created by Goichi Hosada in 1969. It has components of trend and momentum indicators and is compound by five lines.
It includes several moving averages of which two create the so-called cloud. The cloud is the key component of this indicator, and all the entry and exit points will depend on it.
The Ichimoku Cloud has different applications. The most common one generates buys and sells when the price crosses the cloud up and downwards.
When a candle breaks the cloud upwards and closes above it, the price is gaining bullish momentum and generates a buy signal. Likewise, if the price breaks the cloud downwards and closes below it, the price is likely to fall. Therefore it will close a position or open a short.
As you can see in the chart, the Ichimoku Cloud has spotted very well the positive trend and all the pull-backs inside it.
Start automating your trading with Cryptohopper.
—CRYPTOHOPPER—
Chart
The Bitcoin price has had an astonishing beginning of the year. Currently, it has increased over 40% but it has even reached more than 55% when the price tested $10,500. The bearish medium-term trend that Bitcoin was having after reaching $13,800 in June seems to be over with this bull run. The third Bitcoin halving can be having an influence on the price.
For this week’s analyses, we have selected a brand new indicator in Cryptohopper, the Ichimoku Cloud, a trend indicator that is proving to be highly effective in long time frames.
Let’s dive a bit deeper in how it can perform in the BTC/USD market!
Designing your automated strategy
The Ichimoku Cloud was created by Goichi Hosada in 1969. It has components of trend and momentum indicators and is compound by five lines.
It includes several moving averages of which two create the so-called cloud. The cloud is the key component of this indicator, and all the entry and exit points will depend on it.
The Ichimoku Cloud has different applications. The most common one generates buys and sells when the price crosses the cloud up and downwards.
When a candle breaks the cloud upwards and closes above it, the price is gaining bullish momentum and generates a buy signal. Likewise, if the price breaks the cloud downwards and closes below it, the price is likely to fall. Therefore it will close a position or open a short.
As you can see in the chart, the Ichimoku Cloud has spotted very well the positive trend and all the pull-backs inside it.
Start automating your trading with Cryptohopper.
—CRYPTOHOPPER—
The best cryptocurrency automated trading platform.
-Cryptohopper-
cryptohopper.com/
-Cryptohopper-
cryptohopper.com/
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