Sam's Chart Setup for Trading Cryptocurrency

April 6, 2018 | Sam Shames

Sam’s chart setup includes all the studies and indicators he needs to effectively swing trade in any market. Check out the studies and indicators he uses to trade the markets.

This trader’s core setup for charting equities, futures, and cryptocurrencies includes:

ThinkorSwim and TradingView charts

  •      8, 21, 34, 55, 89 period exponential moving averages
  •      Darvas 2.0 – automated support and resistance
  •      TTM Squeeze
  •      MACD – Set to 3, 10, 16 simple moving average
  •      Volume – 21 period moving average
  •      Bollinger Bands – default settings
  •      Multi-squeeze Indicator – 5, 15, 30, 60, 120, 240-minutes, Daily, Weekly

 

Trading Platform: Sam primarily uses ThinkorSwim for charting equities and futures. TradingView for charting cryptocurrencies.

 

How He Plans:

Sam starts his day by reviewing the overnight trade in foreign markets such as the Nikkei, German DAX, and Shanghai. He then reviews the futures markets overnight trade to see how the various markets are positioning going in to the U.S. trading day. This provides context for the trading day as well as the underlying psychology of the markets before the open.

For cryptocurrencies, he will review the hourly charts on the 2 majors—Bitcoin and Ethereum. He uses both Bitcoin and Ethereum as a “crypto index” that can either provide tail or headwinds for the various alt-coins that we also trade at SimplerCrypto.

The best setups happen when the markets are all pulling in the same direction, on those days we look to be more aggressive in terms of size and entry and exit targets.

 

ToS and TradingView Daily Charts:

The daily chart is the most important gauge of a market’s health. Sam will typically begin any analysis on the daily before exploring the lower time frame charts such as the hourly. The positioning of the Exponential Moving Average Wave along with known support and resistance levels via Darvas 2.0 provide structure to the price action. He will look for trending markets on the daily charts, once having found a suitable market to trade he will then narrow the focus to the intraday charts for entry.

Check out an example of his Daily Chart for SPX on the ThinkorSwim platform:

ThinkorSwim daily chart setup for trading SPX

Check out an example of his Daily Chart for Bitcoin on the TradingView platform:

Trading Bitcoin chart setup for TradingView

 

ToS and TradingView Intraday Charts:

Once we have found a trending market on the daily charts Sam will then switch over to the intraday charts. Intraday charts allow us to find precision entry and exit targets to participate in the daily trend. The concepts for identifying trend, support and resistance, and measuring momentum do not change from the daily to the intraday, the only change is the time period in which we are working.

Check out an example of his Intraday Chart for SPX on the ThinkorSwim platform:

SPX chart setup for intraday trading on ThinkorSwim

Check out an example of his Intraday Chart for Bitcoin on the TradingView platform:

Intraday trading charts for trading bitcoin on TradingView

 

Closing:

Sam primarily looks to market correlations and follows a trend strategy where he tries to make advantage of daily and intraday trends. The strategy is top-down first, from the market moving indices including Bitcoin and Ethereum, to make sure that they are pulling in the same direction. Once that’s established we then review from down-up, meaning are the lower time frames in sync with the longer time frame trend.

Sam is primarily a swing trader and does not have a preference on length of time to hold a trade. As long as the trend and market correlations signal continues to be valid, he will hold the trade. He will also cut the trade if any of the underlying conditions change, take profits, and look for a re-entry when the clarity of the trade setup returns.

You can find Sam’s live content daily on SimplerCrypto or you can contact him directly at sam@simplertrading.com.