Aim for the uptrend pullback! What are the key points for a pullback buy using Heikin-Ashi?
Hello everyone, Lippler here! I’m not keeping up with the hype around cryptocurrencies@xi10jun1yet.
I hear Ripple has finally overtaken Bitcoin in market capitalization, right?
And other securities companies are rapidly stepping into cryptocurrency trading, so the crypto boom should continue for a while longer.
※This column is designed so you can read half of it for free, a sort of benevolent creation. Of course, if you read up to the paid portion (updated weekly for 400 yen per month, so about 80–100 yen per column), I would be very encouraged!
This Week’s Performance (May 12, 2017 – May 18, 2017)
First, as usual, the results. I’ll disclose gains and losses first.
- Last week (through May 11, 2017) assets: 95,662 yen
- This week (through May 18, 2017) assets: 96,773 yen
- Change: +1,111 yen
This week, I managed to stay in the plus!
That said, the number of trades was actually quite low. This week I devoted myself to revising my insurance, and my main blog operation and Bitcoin trading fell a bit behind.
I’m frustrated that I can’t ride this rising market, but I’ll continue aiming to return to the 100,000 yen range!
Let’s Catch the Dip!
What exactly is a dip buy?
A dip buy is buying when the price dips due to selling after an uptrend, such as profit-taking. Many people are familiar with this.
Cryptocurrencies, including Bitcoin, can also be traded with dips, aiming for profits.
For example, something like this: a 1-minute chart.
Because it’s a Heikin-Ashi chart, the view is slightly different, but the red-arrow area is the dip.
The main merit of dip buying is that you can ride the uptrend without buying at the peak. You don’t even need to be asked which is cheaper—buying at 10,000 yen or 9,000 yen?
In Bitcoin, if a dip buy succeeds, the high volatility will move the price a lot, allowing you to capture a large profit margin.
Especially in a recent bullish market, the rise can blow up unrealized gains in no time, so taking profits can actually be more challenging.
After Dip, How Do You Realize Profit?
In such cases, determine the timing to take profits based on the entry basis (was it entered on the 1-minute chart, 5-minute, or 1-hour chart?), i.e., the unit of time you used for entry.
For example, if you entered on the 1-minute chart, prices may rise a few minutes later, then retreat as you take profits with a sell order. As shown above, it doesn’t keep rising forever. So the waiting time for your position is a few minutes.
Of course you can dip-buy there as well, but it’s good to decide exit beforehand.
Free Summary: There is no waiting for a dip, but…
Bitcoin is currently trading at high levels. It’s exactly the market adage, “no dip to wait for in a dip-wait—no dip.”
However, when you look at short timeframes like 1-minute or 5-minute charts, you can find dip-buy opportunities at key points. If you grasp these well, you can steadily earn profits even if the profit per trade is small.
And as many of you may have noticed, dip buying is essentially contrarian, right? How do you actually judge entry points? This will be clearly stated in the paid column later.
End Corner 1: Let’s try shopping with Bitcoin!
In fact, on overseas e-commerce site “FANCY,” you can buy goods using Bitcoin! It may cost a bit for shipping, but you’ll find stylish items you won’t see in Japan!
Instructions for using FANCY are summarized on this blog, so please refer to that.
- →Explanation of how to create, register, and set up a FANCY account and purchase flow! | Investor jun of the Yotori generation
- →How to buy (pay with) items on FANCY with Bitcoin | Investor jun of the Yotori generation
End Corner 2: How should you handle tax filing for Bitcoin margin trading (BTCFX)?
You must properly report the profits from BTCFX! I’ve written a blog post after confirming with the tax office by phone, so please refer to it.
※Even tax offices and tax accountants may have differing opinions. Also, laws can change, so the method of filing might change. Before filing, be sure to confirm with your local tax office or a tax professional.
※ The free content ends here. The rest is detailed analysis and future outlook, so it is paid. If you want to read more, of course, you can subscribe as a tip-style support, which would be a great encouragement. Thank you for your continued support!
