Ethereum is the second most traded coin after bitcoin. It has the best characteristics to trading in terms of volume and range, my primary choice over bitcoin.

I’m going to be doing a live event on YouTube on Wednesday July 19th, at 5pm with Rahul Sood, CEO of Unikrn. He’s one of my old mentors and someone who helped me start Bulls on Wall Street. We will be discussing “The Future of the Cryptocurrency Market” and how we can all capitalize on the crypto boom including Ethereum and ERC20.

Ethereum

With Ethereum ETH, you can see that in February it was sitting around $5 – $12. Since then it’s had an epic run up. If you run from a few dollars to $400, there’s going to be a period of consolidation and pullback. That’s just the natural way stocks behave. Currently, ETH has been in a short term downtrend. So when does the bounce start? Well you don’t necessarily know. With trading, you can’t just assign a level and just buy into it. When you do that, you’re in no man’s land. There’s no confirmation that the level is going to hold.

I always respect the trend to both the upside and the downside. As its coming down, I make ideas of where potential support can be. $180 could be a potential level. But we don’t have any evidence yet. So how do you know that a bounce starts? Well, remember that bottoms are a process and rarely an event. What you want is to see some rounding action or some bottoming formation of where the support is holding. This is where we can add validity and let the support build. If it does, I’ll be watching the 9 EMA. The 9 EMA represents your short term moving average. If this MA is still curling down on top of the stock, it’s pushing it down. But when you see the trend reverse, your 9 EMA will start to flatten out. This will tell you that your short term trend is starting to even out. Then when you break over the 9 EMA and it holds, that’s when I’m looking to see if all things are a go.

Once the bottom formation develops, I’ll look on the smaller term time frame like an hourly chart and look for a bottoming process that clears some levels. Then we’ll get a clue as to what’s going to happen. But while we wait for the bottom we can actually short setups. When you see bear flags you can short them for some really nice gains. Participate both ways!

Make sure to join us for our live YouTube discussion on July 19 at 5 PM EST. Click here to set a reminder so you don’t miss it.

The post How To Trade Ethereum – Cryptocurrency To Watch appeared first on Bulls on Wall Street.

The hot topic on everyone’s minds lately is cryptocurrency. The big question has been where will bitcoin start to bounce? Will it bounce or will it crash? Is it done or will it start to move again?

I’m going to be doing a live event on YouTube on Wednesday July 19th, at 5pm with Rahul Sood, CEO of Unikrn. He’s one of my old mentors and someone who helped me start Bulls on Wall Street. We will be discussing “The Future of the Cryptocurrency Market” and how we can all capitalize on the crypto boom.

Bitcoin

Bitcoin has gone on a tremendous run from $600 all the way to $3000. One of the things that we talk about in trading is that when you have a big run, stocks also get tired and need rest. So after a big momentum push, periods of rest, or sideways consolidation is a powerful thing. Rather than crashing down, it sat around in a range. Stocks, currencies, the futures market gain power from consolidations. These consolidations allow the instrument to build up power and allow fresh buyers to come in and take it to new levels.

Right now bitcoin is hovering around $2100 – $2300 mark. What you can see is a certain level of support where it’s been holding. When you have support and you test that support numerous times the more valid the support level becomes. But another thing that happens is when you test the support too many times it becomes weak. When you beat down a door, it gets weaker and weaker. At some point when it breaks, it becomes explosive. If we want to be a buyer, we have to wait and see if that support holds.

Additionally we can see a top range that’s been developing. After drawing a trendline, you have clearly defined levels. This is a wide range. In trading, what we want is type areas. Type areas and consolidation give power and potential for explosion. The term is called range contraction. So when the range contracts and gets tighter and tighter, the break can be very explosive.

With the 9 EMA thrusting on it this is where we need to see a change. When looking at a market or a stock, we look for changes in character. We look for a change in the structure of how it’s acting. The first thing I’m looking for is to see if it starts to round and break over the 9 EMA. If the trendline break holds then I have confirmation. It means that this area is holding and I can start to take a position. But until that happens, I do not trust it.

Make sure to join us for our live YouTube discussion on July 19 at 5 PM EST. Click here to set a reminder so you don’t miss it.

The post Bitcoin Pullback Setting Up An EXPLOSIVE Bounce or CRASH? appeared first on Bulls on Wall Street.

I’m a professional day trader who has spent years mastering my craft and focusing on stocks. Stocks have been my bread and butter. Our next bootcamp is coming up and our seats are filling up fast. It’s here that I can teach you all of my strategies. All of my lessons focus on trends. My students learn how to spot trends, spot momentum, while managing risk and holding onto your gains. Recently, I’ve been applying what I know about technical analysis to all different instruments in the market, particularly crypotcurrencies.

The technical analysis that we’ve been using for years has been working wonderfully in cryptocurrencies. Cryptocurrencies are the new frontier. A strategy I’ve been using quite a bit to trade these has been support plays, also known as breakout pullbacks. Lately this strategy has been working with Litecoin (LTC). Litecoin is an alternative to Bitcoin and Ethereum and acts as the third biggest cryptocurrency. But while the high price of the two scares traders away, LTC tends to have more volume. Not only that, the excess volume in LTC allows for the stock to exhibit more range while providing liquidity.

Litecoin, LTC

On the daily chart, LTC initially ran up to $10 then $15 in a really clean move before flat lining for about a month. Recently it broke out of the flat top range at $36.00 followed by a nice pull back to support. After the pullback, it once again broke its descending trendline before ripping once more. This was our classic flag pattern. After the rip, it once again pulled back again to our moving average ready for another bounce. I level into my position right here at support. My first add was in anticipation that this level is going to hold.  My stop loss was directly under. Once the setup was confirmed, I started adding to the position.

Checking the crypto intraday, you can see that my initial position was priced at about $45.02. I entered once it put in a very simple double bottom pattern setup. The move continued intraday and started to flag, a great spot to add even more to my position. If the stock exhibits this type of behavior while making higher lows, you may see another run.

Additionally, if you get filled on a limit order then you don’t get charged commission. This is a big deal. The way cryptocurrencies will really hurt you is if you’re a chaser. Chasers tend to enter stocks with market orders because once the breakout is happening they have to get in. The commissions for market orders will add up. But if you’re patient and let you orders fill, you won’t be charged a dime.

The strategies that I teach in our bootcamp can be applied to all types of trading. Cryptocurrencies really is the new frontier of trading and by joining the bootcamp you can learn how to trade using technical analysis and my proprietary trading setups. If you’re not sure of the setups and price patterns that we’re talking about you can learn them all in our Bulls Bootcamp which starts August 1. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post Why Bitcoin Is NOT The Best Coin To Trade – Cryptocurrency Trading Begins appeared first on Bulls on Wall Street.