(1) Give a detailed analysis of BICHI STRATEGY. Starting from introduction, identification of trends, trend reversal in market, entry, and exit from the market, one demo trade, and finally your opinion about this strategy. (Screenshot required).
(2) Define briefly Crypto IDX and Altcoins IDX. What is signal prediction trading? Is it legal or ill-legal in your country? (Explain briefly)
(3) If you want to create your own penny IDX, then which 4 penny assets will you choose, and what is the reason behind choosing those four assets. Define Penny currencies. (Explain, no screenshot required).
INTRODUCTION: Good day guys I am @ojerindejoel a student of the Steemit Crypto academy season greetings to us all, I am so glad to partake in the lecture of professor @utsavsaxena11 on Trading with BICHI Indicative Strategy | Introducing IDX
BICHI STRATEGY is a very interesting strategy to use when trading the crypto market, it is the combination of Bollinger + Ichimoku = Bichi strategy But before I proceed, I will like to explain a little about Bollinger band and Ichimoku.
This beautiful strategy was developed by John Bollinger it is the combination of moving averages and simple moving averages it is used to determine the trend and momentum of the current market price; it tells traders when the market price is overbought and oversold and most of the time when squeezes are formed its easily identified by Bollinger band whereby we wait patiently for a breakout to take an entry.
Ichimoku is a kind of unique strategy that has unique features in it, it consists of three lines with clouds, all these lines are moving averages they also indicate trends and momentum of the market price, and it is also good in price action to give better predictions of the Market Price as traders we always patiently look forward to a breakout in the Ichimoku could and close above it before we take our entry
HOW TO IDENTIFY TRENDS USING BICHI
The BICHI is a beautiful strategy to identify trends and we have to always remember one thing as a trade "The trend is your Friend never go against the trend" this simple rule has made many trades go out of track in trading cryptocurrency so how do we now Identify for example an uptrend anytime we notice that the market price does not go below the middle baseline which is the resistance line and its forming highs and higher highs without breaking the middle line we can classify it to be an uptrend same also for downtrend if the market Price forms lows and lower lows below the middle base resistance line the moves to break the support line it can be classified as a downtrend and for sideways trend it is easy to get this one the price will form a W pattern with the bands, when it gets to the upper band it bounces back and when it gets to the lower band it bounce up again and it does this continuously on till there's a breakout.
HOW TO IDENTIFY TRENDS REVERSAL USING BICHI STRATEGY
Identifying reversal trend using BICHI strategy we need to be more patient and here we make use of more of the Bollinger bands, when we start noticing a sideways movement on our chart it might be a continuation or reversal but in the case of an upward reversal we have to patiently wait for the Price to break the Ichimoku cloud several times then we should prepare for a reversal soon, this is also applicable for a downward reversal trend, as soon as the price starts making moves to break the Ichimoku cloud then we need to start locking or take our profit.
TAKING BUY ENTRY USING BICHI STRATEGY
The BICHI STRATEGY is a very good strategy because it is very important, we combine two indicators together before we take our trades so as not to fall victim to fake-out, the BICHI strategy has done everything for us because is the combination of two powerful indicators. It is very simple to make use of this strategy but we have to be patient enough to allow it to form well. When we notice that the Bollinger support baseline has started providing support for the market price with a confirmation of breaking the Ichimoku cloud several times as soon as a candle closes above the Ichimoku cloud we take our entry and our stop loss must touch the support baseline.
- Buy entry
- Profit on analysis
TAKING SELL ENTRY USING BICHI STRATEGY
Taking a sell entry using the BICHI strategy us just vice versa of the buy entry the most important factor is to be patient enough to have a good setup. As soon as the Bollinger band starts providing a resistance for the market price and making moves to break the Ichimoku cloud, as soon as the price closes below the Ichimoku cloud we take our entry and make sure our stop loss touches the resistance baseline.
- Sell entry
- Profit on analysis
MY OPINION ON BICHI STRATEGY
Personally, the BICHI strategy is a good strategy I so much love using because it gives so much information about the current market price using the current time in the market and I like the strategy because it is the combination of two strong indicators and it will enhance more profit why trading.
- CRYPTO IDX
Crypto IDX also known as cryptocurrency index is the combination of four cryptocurrencies which are Bitcoin, Litecoin, Ethereum, and Zcash. This is mostly done on binamo because it takes into consideration the demand and supply factor which makes it more reliable in market price prediction which gives traders a higher percentage of profit and it works round the clock.
- ALTCOIN IDX
Altcoin IDX is very similar to that crypto IDX they Also comprise four cryptocurrencies which are Litecoin, Ethereum, Zcash, ripple. Can also be done on Binamo. Altcoins are alternative coins to bitcoin; they follow all the steps of bitcoin.
Penny currency are a small crypto-asset having a market capitalization of $5–15 million range, penny asset is a digital currency that is not up to a dollar in value and is the smallest denomination in a currency system.
I will be choosing my penny assets based on their usefulness to the cryptocurrency world and to the entire world because any asset without a meaningful goal behind the project can't strive in these current crypto worlds.
My penny assets are;
- Shiba Inu
XRP also known as ripple was developed in the ripple lab, ripple is one of the most popular cryptocurrency assets used in digital payment, it was developed by Ryan Fugger and Jed McCaleb, due to the usefulness behind ripple I will like to have it Part of my cryptocurrency asset, ripple is an asset that has future goals like bitcoin which has made it so popular and well sort after.
Shiba Inu was created in august 2020 by an anonymous individual, it is one of the best penny coins, though people thought it was a meme coin and in early 2021 October, since then major exchanges has started listing it and this made people sort after Shiba Inu
Chiliz is a token built on Ethereum blockchain, it is a sports token and also a fan token Chiliz can be found on socios.com, we all know the impact of sport in the world economy and now attaching crypto with sport it will give the crypto world a great boost, this is why I will like to choose Chiliz as part of my penny list.
Dogecoin was created in 2013 by Jackson Palmer and Billy Markus, dogecoin was created jokingly by these two developers having the same logo as Shiba Inu, dogecoin had its major boost as at 2017 though in 2018 had a little drop down but still had scores of users and some influencer like Elon musk is investing on the coin.
The Bichi strategy is a combination of two strong indicators which are the Bollinger band and the Ichimoku, one thing I so much love about these two indicators is that they work with the real-time and they show us the real trend of the market structure which is very important in our everyday trading as a trader.
We also talked about the crypto index which is a way of combining four cryptocurrencies together which is major traded on binamo and binamo takes into consideration the price action of these cryptocurrencies.
We also have penny currency which is a cryptocurrency that is small in value and they are not up to a dollar.
NB: All screenshots are from Tradingview