Today you are going to learn how to find broken bases. It might sound complicated but it is extremely easy. I am so happy to show all of you this idea that was created by Luc he has a trading group on slack. This document will continually be updated if more ideas on swing trading broke bases arise. So lets take a look at what a broken base is shall we? For this we use tradingview.com for our charts and it’s important to use tradingview.com and not the charts provided to you with your exchange because they have the proper indicators you will need for this.
Let’s take a look at today’s date of Wednesday May 23rd, 2018 and a good buying oppurtunity of a cryptocurrency coin that we deemed is following what a broken base is and how to profit from it. In this example photo we see Ethereum traded against US Dollar and underlined is the broken base. Which is the support line.
(Example photo showing ETH/USD and the broken base that once it stops is an excellent buying opportunity.)
Are you starting to see the obvious and immediately stunning glory that will happen next on the graph? That’s right Ethereum does sit at $598 per coin as shown. You would then use indicators RSI and STOCH to make sure ethereum is at the bottom of it’s retrace. You want to make sure it is oversold and that shows on the RSI (relative strength index) and stoch if the graph line is at the bottom of the graph and it makes a move up for the first time in awhile which means the double lines cross once more. This is your signal to start buying. Now with this strategy you will see hedge funds and millionaires doing this same thing and loving it. You must be confident in your trading the saying is true no weak hands. What must happen for you to be confident is not getting toughen up by your boys but by avoiding them for a few days and studying this article and doing your own research and paper trade to show that this type of trade makes a lot of money.
Imagine You Had Twenty Four Bitcoin
We are now considered doing research and proving the strategy on the above chart so you will be confident while doing this. Trading is for people who have discipline and care not what you do in the market because they have confidence that they have learned the correct strategies and manipulation of the market to gain profit every two to four days. There are so many different strategies that are hard to memorize. They are college courses in finance and business that students spend their whole curricular on this and by the time they graduate they are the ones who trade hundreds of millions of dollars for the large conglomerates. They are the ones trading billions of dollars with a hedge fund start up that he registered in the Cayman Islands so he could get listed on their stock exchange. We are talking about highly qualified people who has taken the best parts of their financial study and put it to work for themselves and to better society. People want money badly and with this strategy your goals can be achieved on any level whether you put $500 into this trade or $60,000. Every 15 minutes bitcoin is trading with a volume of 250 BTC to 1.6Thousand (1600) BTC every 15 minutes. This means you could trade with about that much money every 15 minutes but “LOL” we verify on the 1hour chart and sometimes look at confirmation on the 4hour chart but no necessary.
With the ETH/USD pair from above what you see is the underlined support line and what is called a broken base from that. It is when the coin drops below the support quickly with thousands of people spending 30 to 60 minutes buying up all that they can that is extremely low cost and they overdue it. That is why you see a coin drop off and now you know what a broken base is, then now you know what it means when the coin does its broken base and goes as low as it can with confirmation to buy on the double line cross, RSI and stoch that are oversold and you will know why the trend line goes from an even lower price then sky rockets.
What is written above should be timed right exactly the way it is written out. Sometimes it can take 4 hours or two days for the broken base to profit and sometimes you sell at a stop loss however the goal of trading cryptocurrency is to have more wins than losses. I will throw in make those wins extremely big.
So let’s look at the ETH/USD chart above and see that it’s at $598, we will round off and call it $600. We will buy $60,000 USD worth of ETH after the double line cross on the trend line, and after the RSI and STOCH are on their lowest point but rising. 60,000 divided by $600 is 100 ethereum you would get. Now what you do from here is the wonderfully times amazing love hatred experience. It’s because you want to sell at the absolute best time for the most profit but you will NEVER be completely right and sell at its ATH.
From here you must watch the chart and for 15 minute periods. You must not worry if it starts going down, get comfortable with that because it either drops off in volume or goes sky high. If it’s a blunder you may have your stop loss activated but you are looking for 3% to 5% profit with each of these trades but since they are so amazing the normal reached targets are usually making people 20% to 50%. To prove my statement we go back to studying the eth/btc chart above you will wait and monitor Ethereum Bitcoin for as long as it takes to go above the support, the underlined part of the graph, and on its way to the moon. You will get confirmation of this by again using the RSI and STOCH under indicators on tradingview.com but this time instead of being low they must be at the most above place they can be. This is the part that needs to be timed correctly. You will never know if it’s just going down a little when the RSI shows just a bit of a drop on the 15 minute chart but within the next hour you may see it the RSI actually staying above the highest post for so long that the ETH coin is actually going parabolic.
Your Exit Strategy and Profit Taking
So you have timed it to the best of your ability and you are ready to sell. You saw “WOW” you said to yourself this strategy WORKS! (Example of what happens, demo, did not happen on this part yet) In just 16 hours of monitoring ETH you finally saw ETH jump to a price of $713, You were angry because it’s highest got to $742 but you got greedy and held and did not sell but finally you broke and did the right thing selling at $713 you should be proud of yourself. So let’s do the math..
You bought 100 ethereum for $60,000 because the price of Ethereum was $598 ($600 each) and in 16 hours ethereum mooned because of this broken base strategy. The wonderful thing about this strategy is that it needs to be told to everyone because the amazing part is the exit strategy if you think about it the more people that know about when to sell and this strategy will ALL buy the dip. You can see it already happens and it moons sometimes not great and sometimes you are blown the hell away! So the more people that “buy the dip” on that good timing we discussed will sell their stash of 100 ethereum at the new price of $713 each which now equals $71,300. As we said you started with $60,000 your total profit was $71,300 minus – $60,000 equals = $11,300 dollars you have generated in profit in only 16 short hours. Now mind you this sometimes happens sooner within 4 hours with not such a sky rocketing pump but a very respectable pump again because we know that a lot of people have learned this strategy and they know to “buy the dip”. Now imagine this strategy working when we are in a massive bull market.
It has happened to the writer of this news article multiple times in 2017. The writer generated a profit of $24,000 in 10 hours using the Quick fingers luc wilder trading strategy and Teeka Tiwari of Palm Beach Confidential making it their coin of the month right at the same time of that drop when everyone buys the dip. This timing equals massive amounts of provide in the six digit range.
Proof Of Concept, Proof of Profit Luc ‘s Quick Fingers Broken Bases Stategy.
When we were going over the ethereum example it was new for yesterdays calendar date. Today is now the 24th and I am finishing this story. Much like Carrie Bradshaw on Sex and The City. We are going to study another example that I have taken screenshots for you. This scenario happened on the date of May 23rd at 11:59AM the base was broken.
(Photo of Iota/USD from May 23rd 11:59AM Signal of Buy Broken Base)
I have another photo now of the same scenario zoomed in so you can see it most clearly. What I am trying to show is that the green thin trend line that you create shows the base which is the support. When you are in a time of major down swing like the above chart and it all of a sudden goes green with wicks at the bottom of the candle, the lines of the graph are almost a V, this is a signal to buy and you should of known to buy by the 2nd to 3rd small green candle that you can see is leading up to about 3 longer candles. So far this trade has gained from $1.43 to $1.50. You could sell right now for minimal profit depending on how much you put in or hold for a few days we may see over $2.00 per coin again on IOTA. Below is the same scenario zooned out to see where the crossbow looking arch is.
The IOTA/ BTC Broken Base was from yesterday as I have stated so that is why there is not a lot of price action yet. We have the jet engine started we are just hovering around right now. You can set buy orders at 1.43 or just buy now for $1.40.