3 technical analysis strategies that help confirm winning trades

February 15, 2023

Many newbie traders make the mistake of trading randomness, and they do so without awareness.

If there's one truth in the market, it is this — strategies without a statistical edge will never make you profitable.

This is why it's imperative that traders confine their executions to periods when truly non-random price action occurs, and there are many ways to arrive at non-random price action. The Cointelegraph Markets Pro team, for example, uses the VORTECS™ Score and NewsQuakes™ services to alert traders of potentially non-random price action movements.

To add further legitimacy to these trade ideas, professionals using Cointelegraph Markets Pro combine the alerts from the VORTECS™ Score with technical signals from Bollinger Bands, relative strength index (RSI) and moving average convergence/divergence (MACD). Doing so adds another layer of data that "confirms" the hypothesis generated by the signal.

For Cointelegraph Markets Pro traders who consider a VORTECS™ Score of 75 as a potential entry trigger, here's how one can use the indicators above to confirm trade opportunities:

1) Using MACD as confirmation of a VORTECS™ Score trigger on ETH/USD.

The gray line depicts the VORTECS™ Score, while the white line
depicts the price of ETH. Source: Markets Pro

On Jan. 10, 2021, the VORTECS™ Score on ETH/USD reached 81, triggering an entry setup. An inspection of the price action on the chart shows the trigger was preceded by a MACD fast line crossing over the signal line, a bullish indicator.

Blue vertical line shows the time the VORTECS™ Score was triggered. Blue arrow shows the MACD signal. Source: Markets Pro

By using the MACD as a confirmation tool, astute Cointelegraph Markets Pro traders could've used the VORTECS™ Score trigger to capitalize on what was the start of the 2021 bull run for Ether (ETH).

2) Using RSI as confirmation of a VORTECS™ Score trigger on DOT/USD.

Blue vertical line shows the time the VORTECS™ Score was triggered. Slanted blue horizontal line shows an RSI divergence. Source: Markets Pro

On Sept. 21, 2021, the VORTECS™ Score on DOT/USD reached 75, triggering an entry setup. An inspection of the price action shows that DOT/USD had just displayed a bullish RSI divergence signal:

DOT/USD had set lower lows (indicated by the slanted blue horizontal line on the price chart), while the RSI had set higher lows (indicated by the slanted blue horizontal line on the RSI chart).

By using the RSI as a confirmation tool, astute Cointelegraph Markets Pro traders could've used the VORTECS™ Score trigger to capitalize on a near 100% move for Polkadot (DOT) in two months.

3) Using Bollinger Bands as confirmation of a VORTECS™ Score trigger on DOT/USD.

Red circle shows DOT/USD exceeding the lower boundary of the Bollinger Bands. Source: Markets Pro

Alternatively, traders using Bollinger Bands could've also used the indicator as confirmation for the VORTECS™ Score trigger on Sept. 21, 2021.

DOT's price chart shows it dipped below the lower boundary of the Bollinger Bands on the same day the VORTECS™ Score was triggered, providing immediate bullish confirmation for the trade.

Cointelegraph's Markets Pro provides traders easy access to institutional-grade tools like VORTECS™ Score triggers and traditional technical analysis. Paired together, these can be the building blocks of creating high-quality, high-probability trades.

Get the full story by reading the complete article on Cointelegraph.

Regards,

Russell DeCorte
Director
Markets Pro