Buy Signals based on the Ichimoku System (EOS, LTC, QTUM, ADA)
These trade signals are based on the Ichimoku system. I’ve done previous articles on the Ichimoku system and how it is traded and I’ll do a very short rundown in this article, but I wanted to mention that I would only take these trades if I know that Bitcoin has broken up above the 7600 value area.
Ichimoku Trading Rules
Primary rule for going long or short: Never trade while price is inside the cloud.
Long Trade Rules
- Price must be above the cloud.
- Cloud ahead must be green/bullish.
- Conversion Line is greater than the Base Line.
- Lagging Span is above the cloud.
Short Trade Rules
- Price must be below the cloud.
- Cloud ahead must be red/bearish.
- Conversion Line is lower than the Base Line.
- Lagging Span is below the cloud.
Now let’s look at some possible trades.
EOSUSD is in a prime breakout setup. The only condition we are waiting on is the Lagging Span to cross above the cloud.
Entry price: 13.06
Cardano technically has a buy signal at it’s current value area (0.00002794). However, when the Lagging Span breaks above a cloud that is sloping down, we sometimes get a weak or ‘to-early’ entry signal. Often times it is best to wait for a pullback to the Conversion Line or a break of the most recent high.
QTUM is showing a great entry possibility. We have all the conditions met for taking a long trade, but we may have a great confirmation opportunity as well. Notice where price is at on this chart: right above the Conversion Line. If price remains above the Conversion Line at the close of the hourly candle, a long trade is most definitely warranted. Also, because QTUMBTC is a laggard compared to it’s peers, it has a higher probability of a significant breakout higher.
Out of the major currencies traded on Coinbase, Litecoin is a definite laggard. Which still shocks me. Litecoin is just a far better cryptocurrency than Bitcoin or Ethereum or transactional purposes. It’s crazy fast. Only Cardano is faster. Anyway. We have a clear bull flag formed on the hourly and we appear to be resting right on a confluence zone of the Conversion Line, Base Line and the top of the cloud. The Lagging Span is technically above price, but it’s really trading sideways. Long entry should be when the Lagging Span finally trades above the flag here, so the entry should be in the 121.5 zone.