Trading bots help automate the process of monitoring the market constantly, relieving traders of the burden. Building a bot is not difficult. You can easily find an open-source crypto bot that you can download and start using right away. The main challenge of bot trading isn’t to create one, but to know when to start and stop it. Anyone can acquire the knowledge and skills required to trade using a crypto bot. It is surprisingly simple to do so.
Ready to see a simple, yet profitable bot setup?
Let’s first lay a foundation.
How to Read Charts, Candlesticks & Wicks to Predict Prices
You do need to know a bit about candlesticks on the chart. To help you out, here’s an image:
When the price opens lower and closes higher, it is called a bullish candle. When the price opens higher and closes lower, it is called a bearish candle. Wicks (thin lines) show how high and low prices got over time. Candles have remained the same over all time frames. For example, if you’re looking at a 5-minute chart, then each candle represents 5 minutes of data (same for hourly, like 4 hours, etc.). A more detailed explanation can be found easily on YouTube.
Ideal Time to Start Your Automated Crypto Bot
Let’s get started with the conditions required to deploy the bot.
1. The market needs to make a low
2. After that, it needs to fall below that low
3. Then it needs to close above the previous low.
Once it does, we can begin our bot. It looks like this:
In addition to being incredibly powerful, this setup is also extremely simple. One thing I would recommend is that you look for this opportunity on higher time frames, such as four hours or more. If you’re going to keep a bot open for a long time, using it for a smaller time frame may not be the best choice.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
