Step #1 Divide your 5-Minute Chart by Trading Sessions
Since we’re using a strategy only for day trading Ripple we need to make use of intraday charts. The ideal time frame to implement our Ripple strategy is the 5-minute chart. Also read the simple way of trading multiple time frames in forex.
The 15-minute chart will give us a better view of the overall price action and on the Ripple intraday trend.
Most cryptocurrency trading platforms can do this automatically and place a vertical line at the start of a new trading day. By doing this we can better visualize where the opening daily price is for each new trading session.
Step #2 If we’re on an Up-Day, Mark on your Chart the Time Window between 9 – 10 Time
As we mentioned earlier we have found out through backtesting that the best time to buy Ripple is between 9 – 10 . However, that’s only half of the equation because our statistics also show that the best time to buy Ripple is in the up days.
What do we mean by this?
We want to buy Ripple between 9 AM and 10 AM . Ripple is trading above the opening price.
Our Ripple strategy is very intuitive!
If we buy Ripple above the opening price it means that we’re buying in the direction of the prevailing trend. Essentially, this is a trend following strategy deployed on intraday trends.
Step #3 Buy anywhere between the 9 – 10 Time Window
From 9 to 10 we have our window of buying opportunity. This time window also coincides with the London open and it’s the time when many cryptocurrency traders step into the market.
Now, depending on your trading skills and your experience you can fine tune your entry point within this time window.
Step #4 When day trading XRP Ripple hide your SL below the Opening Price
It’s quite intuitive why the logical place to hide your protective stop loss is below the opening price. Any deep below Ripple opening price will alter the sentiment.
A sell-off below the opening price indicates that the buyers are weak and maybe we’re better off trying to buy Ripple on another day.
In order to make profit trading Ripple we also need a strategy to get out of our position.
We’re also proposing an unorthodox way when it comes to the take profit strategy which brings us to the next step.
Step #5 Take profit once the Price Travels the Same Price Distance it did from the opening price until 9 AM
We’re going to suggest the best way to take profit on Ripple.
For an easy understanding of our Ripple take profit strategy we’re going to break down the strategy in two parts:
First, measure the price distance from the opening price to the high established between 9 to 10 AM .
Second, project the same price distance to the upside measured from the low established between the 9 – 10 window.
The same trading concept has been used multiple times in our various trading strategies. We recommend taking this approach because it incorporates the dynamics of the price rather than an arbitrary price on your chart.
Conclusion – Ripple Trading Strategy
It is said that Ripple has the potential to disrupt the SWIFT system for sending large amounts of money to different countries. Ripple doesn’t have much competition in this space and they have the right infrastructure to be the next . You can also read our best short-term trading strategy.
Published at Fri, 22 Mar 2019 22:15:49 +0000
