See the scroll-through gallery below for the signal each day of July for the intraday polarity line system.
This system is based on the trading methods of W. D. Gann. The lines shown are based on proprietary calculations involving exogenous data. These lines are drawn in advance of the market open each day, and can be drawn years in advance. Each day the position of the lines changes. The scale remains the same, but can be halved or doubled based on a formula involving present price compared to past price size and volatility.
The US session (8:30 – 15:00 CST) in these pictures was chosen based on info from Chicago Crypto Capital. namely, 60% of bitcoin traders are US based. Second, many at CCC believe that crypto is in a period of price discovery. So conventional technical analysis isn’t the way to go with limited data. This system involves non-conventional technicals that can even be used with IPOs before they open.
The intraday polarity line system has been tested with 10+ years intraday data on crude oil, equity indexes, and Euro Dollar. In most systems, we can go back years and not find a losing month for intraday. Every month in Bitcoin shows a net gain so far since it started trading, with July at +2,100 already. And there is a weekly system with these lines.
So here are the rules for intraday…
- Intraday, 2minutes charts use the BTC futures. This instrument harnesses the energy of bitcoin without diluting it with another pair. The signal comes from the futures, but you can execute using Bitcoin currency.
- Wait until the first 3 bars, or 6 minutes, passes. If price touches a line during these 6 minutes, disqualify the line.
- After 6 minutes (or 3 bars), wait for a bar to close above or below a line that has not yet been touched by price. Trade in direction of close.
- If entry bar closes halfway or more to next lines, no trade for the day.
- Stop is a few ticks on the opposite side of the next line behind your trade. If the entry is long, then the stop is ticks below the next line below your entry line.
- Target is the next line in front of your trade. if you enter long, then the line above your trade is target.
- If price moves hallway or more to target line after entry, move stop to just outside of your entry line. If you enter long and price moves halfway, move stop to just ticks below entry line.
- if first trade is a winner, stop for day. If first trade is a loser, then trade next setup involving a line not yett touched by price.