Stellar Cryptocurrency Strategy – The Future of Banking
We’ve obtained plenty of requests recently regarding writing a Stellar Cryptocurrency Strategy. Stellar is considered to become the future of banks, also Stellar Lumens price is predicted to grow from the next several years.
Our team in Dfxindo is spending so much time to assemble the most extensive PDF guide to different cryptocurrency strategies. Before, we covered that the Monero Trading for beginners direct that, for those whoconcerned with your privacy and being utterly anonymous afterward a greatest solitude coin deserves a spot on your crypto portfolio.
Stellar is diverse from every additional coin, also in this respect we’re likely to summarize an extremely distinctive trading strategy to learn the Stellar XLM graph.
Every individual is assembled otherwise. Some traders overlook ‘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 need to utilize any particular signs all that you desire will be always to recognize a graph blueprint and also crucial support and resistance levels.
We’re planning to chat about exactly what forces the Stellar Lumens price, what’s leading and fundamentally we’re likely to summarize a Swing-trading guide to trade XLM coin. Listed here is the way to recognize the ideal swing to boost your benefit.
What’s Stellar Lumens (XLM)?
Stellar is actually a stage which it’s wanting to do quickly obligations with very low prices. The essential benefit of Stellar is it has between 5 and 3 minutes affirmation period plus it supports tens of thousands of trades per second.
Stellar has been in existence for a little while, since 2014. Plus it was launched throughout the Stellar Foundationthat was made by Jed McCaleb and Joyce Kim. Initially, Stellar was a branch of this Ripple protocol, also that’s as the founder of Stellar was additionally the co founder of Ripple.
Stellar actually completely re-architected that the Ripple base code.
Currently, XLM coin is on the list of biggest cryptocurrencies standing in the top coins.
Stellar Lumens price is below the 1 and also trading in just a couple pennies, helping to make XLM a premier cryptocurrency under $1. Our team Dfxindo considers that Stellar is amongst the most useful cryptocurrencies to take a position infor 2020.
You are able to make the most of this impending Stellar cost increase by adhering to our Stellar cryptocurrency strategy.
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Stellar Cryptocurrency Strategy
Let’s first begin with speaking about exactly what price blueprint we will need to make money from Swing-trading Stellar XLM.
All we desire for Swing-trading cryptocurrency is your Double Bar Low Higher Close pattern also referred to since the DBLHC design.
It’s rather an easy task to recognize this price pattern as the DBLHC is just a double sided bar graph design.
Check our favorite crypto plan on How to Trade Bitcoin for Profit here.
All you want todo is to start looking for just two pubs which have equal highs or close precisely the exact same price amount. The next state that has to be fulfilled for a legal DBLHC is the fact that the next candle should close a ton higher compared to candle (see graph above).
Usually, the pub tails are too miniature, nevertheless the candlestick human body is large.
Now, let’s observe exactly how exactly the exact same DBLHC pattern appears to the Stellar XLM graph.
Now, before we proceed further, we consistently advise grabbing a sheet of paper and a pencil and note the rules with the cryptocurrency trading strategy. With this particular case we’re likely to look at the buyside.
Step #1: Find a bullish fad or wait until the marketplace grows a swing non
The dual pub low higher close are seen at the conclusion of a bearish tendency and also the beginning of a brand new bullish fad behaving as a change bullish design. But at exactly the exact same period, the DBLHC is a continuation blueprint which could form at any point throughout a bullish trend.We have practice for building a base prior to a forex plan things.
Having an earlier trend already-established escalates the probabilities of this DBLHC blueprint to do the job.
The DBLHC can create precisely the exact same sort of results when the sector is solely at the procedure for establishing market fold low. When your DBLHC develops shortly after having a swing is done that’s the affirmation we want which the foreign exchange currency is looking for low.
The aforementioned Stellar XLM graph displays market swing low which is within the process of growing.
Step two is as soon as the DBLHC design comes in to playwith.
Step #2: Wait Before DBLHC graph pattern grows on the Stellar XLM Chart
Now you’re knowledgeable about the DBLHC design, it will really come readily to see this highly effective chart pattern onto the Stellar graph.
The DBLHC layout contains two indistinguishable highs along with the next candle close is far greater than the top of their candle.
In the majority of the circumstances, the very first candle will probably soon be bearish, followed closely by a 2nd bullish candle. However, even as we could see here the Stellar cost activity is growing a DBLHC at which in fact the very first candle is bullish. This doesn’t invalidate the DBLHC chart pattern as in our books. It’s still a very tradable 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.
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.
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 is placed below the DBLHC low.
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.
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.
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.
Please leave a comment below if you have any questions about the Stellar Lumens price!