It has been no secret that Bitcoin has made over a 1000% move in the past 12 months. The sensational cryptocurrency has been creating the same level of bullishness in stocks as well. Any stock that has any remote tie to Bitcoin, or blockchain technology has been flying. Here’s how you can capitalize on this insane trend in stocks if you do not trade Bitcoin directly.

Always Pay Attention to Bitcoin’s Trend

You should always have a Bitcoin chart up when you are trading a stock running on a bitcoin/blockchain catalyst. Bitcoin strength will add the probability of a blockchain related ticker following through. On the flip side, Bitcoin weakness will decrease the probability of the ticker failing. This does not mean that you buy RIOT or XNET as soon as Bitcoin breaks to a new all time high. You still need a setup to justify putting your capital at risk. You can see the setups that we took to capitalize on the blockchain stocks in this video. 

Respect the Stock’s Price Action

Bitcoin strength is merely just another variable that will increase the probability of one of the blockchain tickers’ setups playing out and following through. However no stock will be able to emulate the trend that Bitcoin put on. XNET and RIOT are fundamentally weak companies that are just catching momentum because of the bitcoin hysteria. They’re not something to marry. If Bitcoin is breaking out and XNET is rolling over, you need to obey your stop and respect the price action.  

Don’t Chase Strength in Sympathy Plays

Chasing strength is bad in any stock, but it is especially bad when you’re trading a sympathy play. Sympathy plays have less of a reason to hold up since they have no real catalyst behind them. If you get a bad entry, you will often screw up your risk versus reward on the trade by buying to high. It will cause you to get emotional because as soon as you enter the trade, you know you did something wrong. In my trade with MARA, I got a bad entry and didn’t let it play out, even though I would have made a huge gain. The lesson is to always be patient on your entries. More often than not, stocks will retrace after they breakout and there is no reason to chase. 

We teacher students how to trade these type of plays in our 60 day bootcamp. To claim your seat for our next start date please email Maribeth@bullson.ws.

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As a crypto trader you should always be aware of what Bitcoin is doing when you’re trading altcoins. Ethereum and Litecoin tend follow the price action of Bitcoin when it has a major technical breakout or breakdown. If you’re looking for a long on Litecoin and it breaks a key area of resistance, and Bitcoin also has a breakout recently, the probability of Litecoin following through increases significantly. 

Look for Tightening Range

Once you see tightening range on the daily of any cryptocurrency, you should be on high alert for a breakout or breakdown (with cryptos these days it’s mainly breakouts). Once you see a break of this range, you will usually see some nice momentum. You should always set price alerts at key levels of resistance on charts with tightening ranges so you can jump in as soon as the range breaks. When you can combine a Bitcoin breakout with an altcoin breakout of a tight range, you are very likely to see some nice momentum and follow through of the breakout.     

Don’t Chase Altcoin Strength

Some altcoins are even more volatile than Bitcoin. This means there is more money to be made in some of them if you’re on the right side of the trade, but also more to lose if you’re on the wrong side of the trade. This means you have to be extra patient for your entry, and cannot chase strength. You cannot buy Litecoin after it has moved 4 points in an hour. You need to wait for a pullback to MA’s or several candles of sideways action to get an entry. Do not have the fear of missing a big move in these cryptos, they almost always give a second entry after the first big push is made.

Cryptocurrencies are an incredible new and exciting frontier in the financial markets. To prepare yourself to capitalize on this exciting new opportunity, check out our Cryptocurrency Trading Chatroom.

Here is the full length webinar:

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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!

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