If the bear market is tearing apart so many of your favorite altcoins. What can you do as your net value plummets back to earth?
Well, try and make money going down! You can be profitable during the downtrend if you have a shorting strategy, and luckily ProfitFarmers is here to provide one that’s super effective and easy to use.
Shorting Crypto Like a Pro
Here’s an easy short strategy straight from the ProfitFarmers trading team.
We know that some people like to read, which is why cookbooks are still selling out despite Gordon Ramsey sharing his recipes on youtube.
To those people we say: here you go! Down below is the technical recipe for this trading strategy.
Let’s get started.
After you have the charts open (make sure its in tradingview.com), you’ll need to add 3 Exponential Moving Averages:
And finally add the volume indicator to increase confluence to this trading strategy.
In the charts you are about to see, the colors of the following EMA indicators are as follows:
Blue – 200 EMA on the 4hr chart
Yellow – 21 EMA on the daily chart
White – 13 EMA on the daily chart
Now that you have those on your charts, what should you be looking for?
On to the cooking process!
- Make sure the 13 EMA crosses below the 21 EMA on the daily (Bearish crossover!)
- Price is using the 200 EMA as Support
- Preferably prices are below the EMAs
- Breakout (breakdown in this case) is supported by volume
- EMA’s are not contracting
Now that you know what you are looking for, how are you plating it up?
How to Short Crypto Using this Strategy
- Once you’ve confirmed the trend, You can place a short order on the 200 EMA
- Wait until the EMA are no longer contracting, and then you can find an entry using any of the Moving Averages as entry points (200 EMA is the strongest support)
There you have it, a powerful shorting strategy to make a meal out of this bear market!
This is a strategy that’s a reimagining of the EMA strategy we put out a few months ago. If you want to use Exponential Moving Averages to look for LONG opportunities, then watch this video.
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