Ok... first of all I am not claiming to be a good trader - yet. I am simply still too emotional to execute with the consistency of discipline that trading requires.
I am, however, passionate about pattern recognition.
Over the past 6-9 months I have found a pattern that appears to work on Binance BTC pairs, BNB and USDT... it even appears to work in the stocks market but I simply don’t like stocks so as soon as the markets close (I will never understand this!!) I lose interest and head back to crypto.
It appears to be most productive on BTC pairs so I will keep my focus there.
I have been calling the pattern Barrelin’ because it is a time to go in heavy just as a pairing is about to explode.
Personally I believe in trading on the 4-hour chart so this is where I have done all of my back testing.
I also use the RSI (14) indicator.
So the pattern I have found is that pairings explode after going above 75% on the RSI (14) indicator.
I later found that there is a “handoff“ that happens that starts on the 15-minute chart where it hits 75% on the RSI then before it comes back below 75% on the 15-minute chart it goes above 75% on the 1-hour - so it does a “handoff” from one time-frame to the next from 15-minute to 1-hour, then 2-hour, 3-hour, 4-hour, daily, weekly and monthly.
I personally choose to treat the 4-hour as the confirmation for the trade but if you want to trade on tighter timeframes you can choose to use another timeframe as your confirmation to enter the trade.
As for exiting I am still polishing this but generally it is as simple as the RSI dropping back below 75% on the RSI before doing the handoff to the longer timeframe.
I think because I enjoy the searching and finding of this pattern I am simply going to start putting out a Barrelin’ signal on Twitter so that, perhaps, others can use this.
I would love to understand the reasoning behind the pattern. Is it simply psychological with people seeing something pump and going full FOMO or does it have something to do with trading bots.
The pattern is ridiculously consistent.
I am, however, passionate about pattern recognition.
Over the past 6-9 months I have found a pattern that appears to work on Binance BTC pairs, BNB and USDT... it even appears to work in the stocks market but I simply don’t like stocks so as soon as the markets close (I will never understand this!!) I lose interest and head back to crypto.
It appears to be most productive on BTC pairs so I will keep my focus there.
I have been calling the pattern Barrelin’ because it is a time to go in heavy just as a pairing is about to explode.
Personally I believe in trading on the 4-hour chart so this is where I have done all of my back testing.
I also use the RSI (14) indicator.
So the pattern I have found is that pairings explode after going above 75% on the RSI (14) indicator.
I later found that there is a “handoff“ that happens that starts on the 15-minute chart where it hits 75% on the RSI then before it comes back below 75% on the 15-minute chart it goes above 75% on the 1-hour - so it does a “handoff” from one time-frame to the next from 15-minute to 1-hour, then 2-hour, 3-hour, 4-hour, daily, weekly and monthly.
I personally choose to treat the 4-hour as the confirmation for the trade but if you want to trade on tighter timeframes you can choose to use another timeframe as your confirmation to enter the trade.
As for exiting I am still polishing this but generally it is as simple as the RSI dropping back below 75% on the RSI before doing the handoff to the longer timeframe.
I think because I enjoy the searching and finding of this pattern I am simply going to start putting out a Barrelin’ signal on Twitter so that, perhaps, others can use this.
I would love to understand the reasoning behind the pattern. Is it simply psychological with people seeing something pump and going full FOMO or does it have something to do with trading bots.
The pattern is ridiculously consistent.
