ZCASH ZECBTC 1H DOUBLE PITCHFORK STRATEGYStep #1: Draw the double Pitchfork channel
The first thing that we need to pay close attention is how we select our swing points. We only want to choose significant swings on the Zcash chart.
Once you locate the four swings, merely use the Pitchfork indicator to draw the double Pitchfork channel.
There is a simple reason why we use two Pitchfork channels.
Our team at TSG has discovered that the Pitchfork indicator has limited power in forecasting future price movements. However, by using this simple trading trick to combine two Pitchfork indicators together, we eliminate a lot of the drawbacks that come with this unique technical indicator.
Step #2: Wait for Zcash price break above the 1st Pitchfork channel
At this stage, if the two pitchfork channels overlap don’t get confused about it. The 2nd pitchfork is darker color.
Wait for the Zcash price to break above the 1st pitchfork channel. We want to see a big bold breakout candle that closes above the 1st Pitchfork channel.
Step #3: The Zcash price needs to trade below the median line (2nd pitchfork channel) on a closing basis.
The median line of the second pitchfork channel needs to hold the upside and provide us with strong resistance.
As a general rule, as long as we trade NEAR the median line, we’re good to go even if for a brief period of time we still break above the resistance line. Most of the time, the Zcash price will gravitate towards the median line back and forth, so we need to take that into consideration if we want to trade cryptocurrency strategies successfully.
Step #4: Buy at the market or stop order as soon as we break below the 2nd Pitchfork Channel bottom support line.
How to buy/sell Zcash is simple.
With our entry technique, we sell at the market or stop order when we break below the 2nd Pitchfork Channel bottom support line.
The advantage of this cryptocurrency entry strategy is that we sell when the momentum is in our favor.
Step #5: Place protective Stop Loss above the 2nd Pitchfork Channel median line
One of the most important things in trading is risk management.
So, don’t forget to place your protective stop loss in order to minimize the potential losses.
After you sold Zcash ZEC, make sure you add your stop loss order above the 2nd Pitchfork channel median line.
Step #6: Take Profit when we touch the median line of the 1st Pitchfork Channel
or according to your trading plan
Our take profit strategy for successful cryptocurrency trading is easy to implement.
We don’t want to take premature profits, but we also don’t want to give back our hard earned profits either. In this regard, we take profits when Zcash price reaches again the median line of the 1st Pitchfork channel or according to your trading plan.
Note** the above was an example of a SELL trade using the Zcash cryptocurrency trading strategy. Use the same rules for a BUY trade – but in reverse.
