Tops & Bottoms Strategy

In this article you will learn how to find tops and bottoms using the Bitcoin Indicator. It’s actually really simple and easy to follow. Trade the trend change like a PRO!

I’m a high leverage scalper so I usually check low timeframes from 30sec to 10m. However you can use this strategy on higher timeframes, too. You will look for an entry zone on Bitcoin Indicator C first and find a sharp entry on Indicator B.

I’m kinda addicted to trading so I have all the available altcoins saved in my tradingview account. When I get into the trading mood I check all the charts one by one. I usually check 3m timeframe first and if I find a good opportunity I check lower and higher timeframes, too. Anyways if you have a favorite coin you can look for entries only for that one… it’s up to you but if you don’t stick to one coin you will be able to find an entry almost anytime you want to trade.

In this article we refer to bybit trading platform which is the most advanced platform for leverage trading. If you register an account and use it on your trading journey we give you 50% discount from the full price of the Bitcoin Indicator. Registration does not require KYC. Claim your discount at Checkout!

Step #1

Get out of your bed make a coffee and open the chart. I prefer doing it from a laptop or tablet to see the whole chart clearly. While you drink your coffee look for tops/bottoms on Bitcoin Indicator C. If you can’t find any just open an other chart. To be able to find a good entry zone you have to understand how Indicator C works;

crypto trading tool

Indicator C is the first thing you will check when you look for your entry as it’s the main trend indication tool. It has 3 waves the White, Light and Dark one. As you can see the wave #1 shows the short-term wave #2 shows the medium-term and wave #3 shows the long-term trends on the market.

The very first step is identifying the Entry Zone with Indicator C. The best zone is where #1, #2 and #3 are topping/ bottoming together, however in most cases wave #1 and wave #2 will top/ bottom while wave #3 keeps moving the same direction. This means the trend is already weak and it’s about to change but it might keep continue for a while. Sometimes you can just wait for the waves crossing (dots) and look for an entry after that but sometimes the best entry zone is somewhere before the cross…

Step #2

Once you identified the entry zone with the help of Bitcoin Indicator C it’s time to look for the entry. For this you will use Bitcoin Indicator B. It does not require much explanation. Indicator B shows the micro trends. For this strategy we don’t really need the Money Flow, Magic Dots and Divergence lines. Use them as plus confirmations only. Just like Trendline and Signals from Indicator A.

So you can find a sharp entry with the dots on Indicator B. Obviously the bigger the wave the more chance for a bigger price move to the opposit direction. When we are in the trading zone it’s the best waiting for the dots which appear above level 1 (or below level -1 for Long trades).

Once all stand together it’s time to open a trade with ~30x-35x leverage. Set your SL next to the liquidation price and wait for ~1% move. Read more about these details in the Balance Management article.

bnbusdt

Long Entry

All the waves were bottoming on Indicator C and a Long dot appeared on Indicator B below level -1. This is a perfect entry!

If we missed the first Long dot on Indicator B which appeared in our entry zone we could still go with the second one as Money Flow was clearly getting weaker and weaker from the downside.

In some cases dots appear too late on Indicator C so we have to get into the trade before that. This is the tricky part because there is no rule for this but with experience you will see the entry zone immediately when you take a look at the Indicator.

However in this example everything worked out perfectly. We can see waves #1/#2 show an uptrend as they moving upside parallel. Also wave #3 bottomed clearly before the price move.

BNBUSDT/ 4m timeframe

Short Entry

Waves #1/#2 were topping on Indicator C and they showed a beautiful downtrend by moving downside parallel. Meanwhile wave #3 just reached it’s top. It’s the perfect sign of an entry zone!

As you can see there was a short dot appearing on Indicator B before waves crossed on C, yet it was a good entry because wave #3 didn’t indicate a strong uptrend. We can say “it was about to top” as it was almost flat at that point.

However if we waited for the light and dark waves crossing on Indicator C we still got a second chance because a new Short dot appeared on Indicator B. It was below level 1 near to the zero line, yet it’s a great entry as the money was really strong to the downside. As I mentioned before we can use Money Flow, Magic Dots, Trendline and Signals as an extra confirmation if there is any doubt.

NEARUSDT/ 3m timeframe

Step #3

You have successfully found the entry zone on Indicator C also a sharp entry on Indicator B. Your position is running in profit and you feel like an unstoppable winner. The success and the freedom shout out your name loudly. This is the right time to close your trade. As I mentioned in the Balance Management article we want to take profit once the price reached ~1% move. Sometimes it will be less sometimes more depends on the market, however we definitely don’t want to see our position running down to negative. That’s why we follow the signs of Indicator C while our position is opened.

Usually I close my trades in 30%-40% profit even if the indicator shows there is more potential. Trading with such a high leverage is risky and anything can happen on the market. Believe me you defintely don’t want to lose your 35% position because of a random spike…

So actually there are 3 cases of closing a trade;

  • Reaching ~35% profit (~1% move) and closing it with ease.

 

  • Closing it because waves #1/#2 look like topping/bottoming on the opposit side;  Sometimes we have to close in less profit than we expected because it’s getting too risky to keep it opened. Don’t forget wave #3 follows longer trends so it can easily continue it’s way to the wrong direction even if it looked like topping/bottoming before. That’s why you should consider closing the trade if waves #1/#2 are going too far. Same valid for Indicator B waves in case you trade higher timeframes. If a 10m/15m + wave is getting too big to the opposit side and your position still didn’t reach your target… you definitely want to close it!

 

  • Closing it in an extremly huge profit like 100%-300% because the trend change was so clear on wave #3 you just followed it’s move all the way up/down. This is absolutely possible but requires more analyzing on several timeframes because such a big move can be predicted only from a bigger picture. Catching a 30m timeframe trend change with this methode is just… well, no words for that.

And there is a possibility of closing your trade in a loss but I never do that. I rather let it touching Stop Loss (-60%). If you wonder why just read Balance Management as it’s also the part of the strategy.

Summary

See waves #1/#2 topping/bottoming on Bitcoin Indicator C. If wave #3 shows a strong trend just wait and let it be. In case it’s weak or about to top/bottom you can look for a sharp entry on Indicator B which should be appearing above/below leve 1/-1.

This strategy might be confusing for the first time but it’s totally okay. Read it one more time if necessary and start practicing… soon you will see it’s actually really simple. Just don’t jump into trades when you see waves #1/#2 topping/bottoming rather wait and see where it goes, however be ready for the entry because it’s somewhere in the corner!

"Safety Player" Mode

If you want this strategy make much more accurate you can set 2 timeframes next to each other and look for waves topping or bottoming on both at the same time. Check 3m with 1m or 5m with 3m, 10m with 5m and so on…

If you have a paid membership on Tradingview just change layout to double chart mode and save it so you can enjoy it from mobile, too. In case you are using a free account you can do it from desktop only by opening the chart in two separated windows.

Are you ready to use the Strategy?

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