Crypto Rockstar is based on multiple trading indicators used to find the most precise price direction in short- and long-term crypto charts. Using this indicator needs attention to buyers’ and sellers’ activity as the crypto market is decentralized with no central intervention. If you are interested in building a crypto portfolio with a higher success rate, using the Crypto Rockstar strategy would be wise.
The following section will show the strategy’s complete trading guide, including exact buying and selling examples.
What is the Crypto Rockstar strategy?
The method determines the price direction using two indicators — SSL channel and EMA. It is based on multiple confirmations, applicable to bullish and bearish markets. When both indicators show the same signal, you can open the trade immediately. However, it needs a deep understanding of the SSL channel and MA.
SSL or the Semaphore Signal Level channel combines MAs to work as dynamic support and resistance.
- The green line in this indicator shows a scenario where bulls are trading with a higher market dominance than bears.
- The red line shows a strong where sellers dominate the market. The shift of channel bullish to bearish or bearish to bullish is a sign of trend change.
Exponential moving average
It is a dynamic line that shows where the average traders are doing with the price. If the price takes over the EMA line, it indicates a market reversal. On the other hand, a strong gap between the price and EMA opens a possibility of correction due to the mean reversion.
The SSL chart alert is an indicator that combines MAs to provide you with a clear visual signal of price movement dynamics. In short, it’s designed to show you when a price trend is forming.
How to trade using the Crypto Rockstar in trading strategy?
The main trading approach using this strategy is to wait for a breakout and formation of a swing level. Later on, the price should reverse as a correction to the primary bullish and bearish pressure and open a trading opportunity from the SSL channel. Moreover, the trading entry should match the momentum from the 50 EMA to increase the probability.
Besides, this trading approach needs the basic use of candlestick and price action so that investors can precisely take the trade by reducing the risk. For example, after making a swing high above the SSL indicator, the price should come back to the channel area and form a bullish reversal candlestick. Without waiting for the candlestick rejections, the trading setup will be low probable and risk of making losses.
A short-term trading strategy
The method approaches are applicable to find the price direction from the intraday volatility. Based on our experience, we have found a better result in 15 minutes time frame from the London session to the mid of the US session. Due to the lack of liquidity, the early Asian session is not suitable for this strategy.
Bullish trade scenario
In intraday trading, the buy trade should have the following conditions in the 15 minutes chart:
- The higher time frame market direction should be bullish. In that case, investors should understand the one hour or our trend is heading.
- In the 15 minutes time frame, the price should move higher above the SSL channel, creating a new swing high. It is the first indication of buying pressure in the intraday chart, which is emerging.
- After making a new swing high, the price should lower to the SSL channel area and reject it.
- The trading entry is valid once the price moves up and closes a candle above the 50 EMA.
- With some buffer, the ideal stop loss is below the SSL channel or near-term swing low.
- The take profit will be based on 1:2 risk vs. reward.
Bearish trade scenario
In intraday trading, the bearish trade should have the following conditions:
- The higher time frame market direction should be bearish.
- In the 15 minutes time frame, the price should move below the SSL channel creating a new swing low.
- After making a new swing low, the price should move to the SSL channel area and reject.
- The trading entry is valid once a candle is closed below the 50 EMA.
- The ideal stop loss is above the SSL channel or near term swing high, and the take profit will be based on 1:2 risk vs reward.
A long-term trading strategy
The method is applicable in the crypto market to find a place to join the long-term rally. This strategy can easily find where the trend direction has shifted from bearish to bullish. Moreover, it needs a correction after shifting the trend so that traders can have the actual movement.
Bullish trade scenario
Unlike short-term trading strategies, traders don’t have to bother about where the intraday price is heading. This strategy is applicable on 4-hours, daily, or weekly time frames, but sticking to a daily chart would provide the best result.
The buy trade should come once the following conditions are present in the price:
- The price moves higher above the SSL channel, indicating that the long-term trend shifted its direction from bearish to bullish. Still, we don’t know whether it is a reversal, so investors should wait until it shows a bearish correction.
- After the bearish correction, the price should reject the SSL support level and form a bullish daily candle above the dynamic 50 EMA.
- The ideal stop loss will be below the near-term swing low with some buffer and take profit based on the risk management system.
Bearish trade scenario
The sell trade should come once the following conditions are present in the price:
- The price moves below the SSL channel, indicating that the long-term trend shifted its direction from bullish to bearish.
- After that, the price should reject the SSL level and form a bearish daily candle below the dynamic 50 EMA.
- The ideal stop loss will be above the near term swing high with some buffer and take profit based on the risk management system.
Pros & cons
|Crypto Rockstar is based on multiple indicators to ensure higher accuracy.||This trading approach might not provide a good result during the market crash.|
|This trading strategy applies to any crypto asset.||It needs close attention to price action and candlestick analysis.|
|Crypto SSL channel and 50 EMA offer the best use of dynamic support and resistance.||Although the price meets all conditions, there is a risk of losing money.|
In the final section, we can say that the ultimate result of a crypto trading method comes from how investors utilize the trade and risk management systems. The crypto market is volatile and needs special attention to risk management by properly utilizing the fund.