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.