Status SNT Cryptocurrency Strategy – Ugly Double Bottom
We are not claiming to have the Holy Grail, but the Status SNT cryptocurrency strategy will undoubtedly help you better time the market and trade reversals. The ugly double bottom setup is a reversal chart pattern discovered by retired trader Thomas N. Bulkowski, which will give you a systematic way to fish for bottoms.
Our team at Trading Strategy Guides is working hard to put together the most comprehensive PDF guide to different cryptocurrency strategy. Previously we have covered Zcoin which is another digital currency that focuses on providing anonymous transactions and privacy.
This day trading cryptocurrency strategy focuses on the big intraday market swings. However, the trading principles behind the ugly double bottom pattern are not time frame dependent, so that it can be applied to all time frames equally.
This reversal pattern can also be naturally used to trade Forex currency pairs, stocks, commodities, ETFs and every other market that has a price attached to it.
Moving forward, we’re going to explain what is Status SNT, and last but not least we’ll share the key trading elements of the Status trading strategy so you’ll stop losing money. You can also read a million USD forex strategy
What is Status Coin?
Cryptocurrency Status is an open source messaging platform and secondly is a mobile browser that acts as a gateway to all Ethereum applications. Status is a fairly new cryptocurrency that is less than a year old.
Status SNT is built on the Ethereum platform, which currently is the cutting edge technology in the crypto world.
Cryptocurrency Status SNT is a top 50 coin trading below the $0.10 which means that you can make a nice return even with a small investment capital. We’re also trading above the status ico price of 0.0001 ETH and snt ico price.
The coolest thing about Status and why we’re so excited about this coin is their private peer-to-peer messaging App which offers you ownership of your own data. You can also send cryptocurrency payments within chats, which is quite convenient.
Now, before will outline a method on how to buy Status coins, we always recommend taking a piece of paper and a pen and note down the rules of the Status SNT cryptocurrency strategy.
For this demonstration, we’re going to look at the snt coin buy side.
Status Trading Strategy
The reversal pattern outlined by the day trading cryptocurrency strategy will help you time the market to buy Status SNT near the bottom. The ugly bottom setup will give you a success rate of anywhere between 55% and 75%, but it depends on the quality of the setup and the exit strategy used.
We encourage you to do your own backtesting with different exit strategies, and maybe you can improve the overall performance of this reversal pattern.
The ugly double bottom pattern, as the name suggests it’s derived from the classical double bottom pattern. The only difference between the two is that the second low develops much higher than the first low.
The below figure highlights the ugly double bottom pattern:
As a general rule, the second bottom should be 5% to 20% higher than the first bottom. This reversal pattern is only confirmed after we break above the highest high between the two bottoms.
Like with all our day trading strategies we’re going to give you first the trading rules by going through an actual live trade example.
Step #1: Identify two bottoms where the second bottom is at least 5% higher than the first bottom
The first step is to identify the correct price structure of the ugly double bottom pattern. Basically, we need two bottoms where the second bottom is higher than the first one. In other words, the price needs to make a higher low.
See status price chart below:
The second bottom also needs to be between 5% and 20% higher than the first bottom. This trading rule will ensure we’re not developing a double bottom pattern and secondly, it will ensure the downswing leg before forming the second bottom has a proper length.
Now, there is one more critical element that needs to be satisfied which brings us to the second step of our day trading cryptocurrency strategy.
Step #2: Bottom 1 needs to develop a “V” shape type bottom
The key to this reversal setup is the shape of the first bottom. The bottom 1 price structure needs to be a “V” shaped bottom.
The identification guidelines of the V-shaped bottom are quite easy.
The price needs to drop in a straight line, and then it reverses and moves up at a slightly steeper slope or at least at the same speed as it fell.
In our Status SNT chart below the first bottom that we identified mirrors the same characteristics of a V bottom. While this is not a perfect V-shaped bottom, it still follows all the rules to validate the reversal pattern.
The good thing is that we don’t need to spot this reversal pattern on a real live feed as they happen, we can look in hindsight and have the time to validate them.
Next, we’re going to outline what key condition needs to be satisfied with our entry strategy and how to buy Status SNT.
Step #3: How to buy Status SNT: Buy after we break above the highest point between the two bottoms.
The ugly double bottom pattern is confirmed once we break above the highest point between the two bottoms. That’s also the moment when you would want to buy Status SNT.
A break above the highest high between the two bottoms will also mark a break in the price structure. Once we break above point B, the price is making a higher high which, coupled with the previous higher low we can safely assume the market is in the process of establishing a new bullish trend.
This reversal setup indicates that the catching a falling knife can work, but you need to be patient until all requirements fall into place and only then pull the trigger.
This brings us to the next important thing that we need to establish for our day trading cryptocurrency strategy, which is where to place your protective stop loss.
Step #4: Place your protective Stop Loss below the second bottom
As we’ve suggested earlier, you can adopt different strategies to manage your risk, but for the purpose of this example, we’re going to highlight one effective way to hide your stop loss. Here is another strategy on how to apply technical analysis step by step.
Place your stop loss below the second bottom!
Alternatively, you can place your stop loss below the bottom 1, but this requires using a wider SL.
Last but not least, we also need to define where we take profits when trading cryptocurrency SNT Status.
Step #5: Take profit at the 1.272 Fibonacci extension level
For our exit strategy, we’re going to use the Fibonacci extension toll. You can establish accurate profit targets with the help of the Fibonacci extension tool. We’re going to use the two bottoms and the highest high between the two bottoms as reference points to draw the Fibonacci extension lines.
As a day trader, you only need one good trade to succeed in this business. Just imagine how much you can accomplish with one good trade per day.
Note** the above was an example of a BUY trade using the best Status SNT cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse. In the figure below, you can see an actual SELL trade example.
Conclusion – Day Trading Cryptocurrency Strategy
Use this five-step day trading strategy to find consistent reversal trades each day. If you’re not a day trader, in our previous cryptocurrency strategies, we reviewed swing trading cryptocurrencies. Learn more using the following link: Tron the new Bitcoin of China
Status SNT cryptocurrency strategy can help you find those intraday patterns that seems camouflaged within the intraday random price. If you want to day trade Status SNT, then learn the ugly double bottom pattern to start exploiting their profit potential.
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