I’ll give you two methods that are helpful for planning your trading strategy, but remember that nothing is certain and all investments, especially in cryptos, carry risks. DYOR. This is NOT financial advice.

1 The Bubble Trading Way

Just use the 200-day simple moving average. It’s a free indicator (just type in Moving Average on Trading view) and it’s red in the image below.

Buy when the price closes above and sell when the price closes below the line.

It’s not perfect, because you will get “noise” or inaccurate signals (yellow circles), but it does a pretty good job. In the 2016–2017 bull market, for example, that strategy got you better than 26x on BTC.

It’s also low effort as it’s a long-hold style trade.

The key to this strategy is to use it on bubbly asset classes, like $BTC. We have an entire community devoted to finding such bubbles, and you can join our Newsletter for FREE.

2 The 25 Delta Skews Approach

I post about this regularly in our community. Here’s the idea. When degen traders are too optimistic, this indicator reads above 10%. Historically, the price is likely to revert. When degens are too pessimistic, so the indicator reads below a -10%, the price has historically risen.

Recently, the reading stood at -4.39%, and that means …

Nothing!

It must cross above 10% or below 10%.

You could use this single indicator to make your trades—for example, buying when it’s too low (below -10%) and selling when it’s too high (above 10%).

3 Concluding Thoughts

Those are both free indicators. The moving average indicator is on any trading platform, I just prefer Trading View. TheBlock gives you the 25 Delta Skew stuff for free (use the 1-week timeframe).

I have a free course that walks you through building a stablecoin indicator that beats $BTC by 457% if you want to learn about that. Here’s the link.

That course is 100% FREE and I explain everything step by step.

Hope this helps, and happy trading!

-Sebastian Purcell, PhD

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