Stellar lumens price

Stellar Cryptocurrency Strategy – The Future of Banking

We’ve got a lot of requests recently about writing a Stellar Cryptocurrency Strategy. Stellar is considered to be the future of banking, and Stellar Lumens price is expected to rise in the coming years.

Our team at Trading Strategy Guides is working hard to put together the most comprehensive PDF guide to different cryptocurrency strategies. Previously, we covered the Monero Trading for beginners guide which, if you’re concerned about your privacy and being completely anonymous then the biggest privacy coin deserves a place in your crypto portfolio.

Stellar is different than any other coin, and in this regard, we’re going to outline a very unique trading approach to read the Stellar XLM chart.

Every human is built differently. Some traders don’t have the necessary patience to HODL cryptocurrencies. For those traders, swing trading may be a good alternative reading the Stellar XLM chart.

Swing trading cryptocurrencies will allow you to hold positions for at least one day and up to 3 weeks. You don’t have to use any particular indicators all you need is to identify a chart pattern and important support and resistance levels.

We’re going to talk about what powers the Stellar Lumens price, what is stellar and ultimately we’re going to outline a swing trading guide to trade XLM coin. Here is how to identify the right swing to boost your profit.

What is Stellar Lumens (XLM)?

Stellar is a platform that it’s trying to do very fast payments with very low fees. The key advantage of Stellar is that it has between 3 and 5 seconds confirmation time and it supports thousands of transactions per second.

Stellar has been around for a while, since 2014. And it was started through the Stellar Foundation, which was created by Jed McCaleb and Joyce Kim. Initially, Stellar was merely a fork of the Ripple protocol, and that’s because the creator of Stellar was also the co-founder of Ripple.

Stellar actually completely re-architected the Ripple base code.

Currently, XLM coin is among the biggest cryptocurrencies ranking in the top 10 coins.

stellar lumens wallet

Stellar Lumens price is below the $1 and trading at only a few cents, which makes XLM a top cryptocurrency under $1. Our team at Trading Strategy Guides believes that Stellar is one of the best cryptocurrencies to invest in for 2019.

You can take advantage of the imminent Stellar price increase by following our Stellar cryptocurrency strategy.

Best Places to Buy Stellar (XLM) Cryptocurrency?

#1 Binance By far our most recommended place for all things cryptocurrency. Binance is known for its strong platform, dedicated team, superior technology, and a wide array of resources. As an industry leader, they are capable of 1,400,000 orders per second. This makes them the fastest exchange in the market today. You can sign up with them in less than 5 minutes here.

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#2 Coinbase is another trusted, popular platform. Both Coinbase and Binance are great choices if you are looking to start buying and selling cryptos. You can sign up here if you wish!

Stellar Cryptocurrency Strategy

Let’s first start by talking about what price pattern we need to profit from swing trading Stellar XLM.

All we need for swing trading cryptocurrency is the Double Bar Low Higher Close pattern also known as the DBLHC pattern.

It’s quite easy to identify this price pattern because the DBLHC is a double bar chart pattern.

Check out our other popular crypto strategy on How to Trade Bitcoin for Profit here.

stellar cryptocurrency strategy

All you need to do is to look for two bars that have equal lows or near the same price level. The second condition that needs to be satisfied for a valid DBLHC is that the second candle needs to close a lot higher than the first candle (see chart above).

Usually, the bar tails are tiny, but the candlestick body is large.

Now, let’s see how the same DBLHC pattern looks on the Stellar XLM chart.

See below:

Stellar XLM chart

Now, before we go any further, we always recommend grabbing a piece of paper and a pen and note down the rules of this cryptocurrency trading strategy. For this example, we’re going to take a look at the buy side.

Step #1: Find a bullish trend or wait until the market develops a swing low

The double bar low higher close can be found at the end of a bearish trend and the start of a new bullish trend acting as a reversal bullish pattern. However, at the same time, the DBLHC is also a continuation pattern that can develop at any stage during a bullish trend. We also have training for building a foundation before a forex strategy matters.

Having a prior trend already established increases the probabilities of the DBLHC pattern to work.

The DBLHC can produce the same kind of results even when the market is only in the process of establishing a market swing low. If a DBLHC develops right after a swing low is created that’s the confirmation we need that the institutional money is buying low.

Stellar XLM chart

The above Stellar XLM chart displays a market swing low that is in the process of developing.

Step two is when the DBLHC pattern comes into play.

Step #2: Wait until the DBLHC chart pattern develops on the Stellar XLM Chart

Now that you’re familiarized with the DBLHC pattern, it should come easily to spot this powerful chart pattern on the Stellar chart.

The DBLHC pattern has two identical lows and the second candle close is way higher than the high of the first candle.

In most of the cases, the first candle will be bearish, followed by a second bullish candle. But as we can see here the Stellar price action is developing a DBLHC where the first candle is also bullish. This doesn’t invalidate the DBLHC chart pattern as in our books. It’s still a very tradable chart pattern.

DBLHC chart pattern

The Stellar coin satisfies both of our trading conditions which means that we can move forward and outline what the trigger condition for our entry strategy is.

See below:

Step #3: Buy at the market at the opening of the next candle after the DBLHC pattern

When to buy Stellar is quite easy. As per the DBLHC pattern rules, we need to enter immediately at the market when the DBLHC has formed. Alternatively, we can place a buy limit order above the high of the second candle.

Buying Stellar with our cryptocurrency buy strategy will offer you a high risk to reward ratio.

The second advantage you have is that you’re buying Stellar right when the bullish momentum is starting to build up. Technically, this means that the price should never look back, which means that the drawdown should be minimal.

stellar coin price prediction

The next important thing we need to establish for our cryptocurrency trading strategy is where to place our protective stop loss.

See below …

Step #4: Place protective Stop Loss below the DBLHC low

The DBLHC chart pattern also provides us with a great spot to hide your protective stop loss.

Trading without a stop loss is the number one mistake that traders make. Make sure you always trade with a stop loss to protect your account balance.

After you bought XLM coin, the protective stop loss can be placed below the DBLHC low.

xlm price prediction

Last but not least, we also need to define a take profit level for buying Stellar XLM.

See below …

Step #5: Take Profit when we break below the up-sloping trend line that connects the swing low points

If you want to cash out some of your profits after trading Stellar, the first thing you need to do is to draw an up-sloping trend line starting from the swing low you identified in Step #1. The next step is to connect all the swing low points that are part of this new uptrend.

As soon as the price breaks and closes below the upward trend line you take profits.

This take profit strategy will maximize your trading profits and it will keep you as long as the bullish momentum is strong.

DBLHC chart pattern stop loss

Note** the above was an example of a BUY trade using the Stellar cryptocurrency trading strategy. Use the same rules for a SELL trade – but in reverse. In the figure below, you can see an actual SELL trade example.

Stellar lumens price

Conclusion - Stellar Lumens Price

Stellar XLM is standing out from other coins, and it’s among our favorite cryptocurrencies. Stellar Lumens is one of the most interesting and promising coins. Stellar also has some serious partnerships of huge payment processors and they really have an inclusive vision of how to start a currency system that works for everybody. Also, read how to apply technical analysis step by step.

Our Stellar strategy combines both momentum and chart patterns to provide you with the best cryptocurrency strategy. The DBLHC remains a very powerful chart pattern which in the right chart location can produce substantial trading results.

Thank you for reading!

Please leave a comment below if you have any questions about the Stellar Lumens price!

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With over 50+ years of combined trading experience, Trading Strategy Guides offers trading guides and resources to educate traders in all walks of life and motivations. We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. We provide content for over 100,000+ active followers and over 2,500+ members. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.