How to Use Technical Indicators to Day Trade Cryptocurrencies

Table of Contents

How to Use Profitable Technical Indicators & Chart Patterns to Day Trade Cryptoccurrencies for Daily & Weekly Returns

The current trend among investors in cryptocurrencies is day trading with them. The approach to day trade cryptocurrencies is different from traditional long-term investments. In this form of trading, the profits are locked daily. Therefore; the investors can earn more profits on their earlier profits. It opens up avenues for quicker and substantial financial gains for cryptocurrency traders.

Core Features of Day Trade Cryptocurrencies

Core Features of Day Trade Cryptocurrencies - Reza Abbaszadeh

Basic features of day trade cryptocurrencies are different from the traditional investments in the following ways.

  • It does not require large initial investments;
  • Investors can earn good profits with small investments; and
  • Day traders can get in and out of trading daily minimizing the possibilities of loss-accumulation over time.

Practice can make Day Trade Cryptocurrencies Perfect

Like any other trading process, the investor can make their day trade cryptocurrencies rewarding with consistent practice. If you need guidance then you can use content posted online.

Expand Your Knowledge Base

You should try learning as much as possible that can tune you up for profitable day trading. Such knowledge will include:

  • Getting conversant with various cryptocurrencies;
  • Their current standing in the market;
  • Understanding the most profitable methods to day trade cryptocurrencies; and
  • The method best-fit for your purpose.

Day Traders Should Follow News Regularly

Though you will come across less news about crypto-currencies you must take note of the news published about them. While going through them the day traders have to check for scams and select only the authentic ones. This will help them to assess the current market trends. A couple of reliable sources are and Viewers can get correct ad updated information on cryptocurrencies and day trading on these sites.

Interaction on Forums can be Helpful

When you decide to day trade cryptocurrencies you should participate in online forums. The advantage of it will be that you can interact and exchange opinions with other traders on such a forum. Sharing experiences with others can enable you to choose the right currency and day trading process. Results could be highly rewarding for you. A couple of recognized forums are and Currency/.

Learn When to Enter and to Leave

Learn When to Enter and to Leave - Reza Abbaszadeh

The most important part of carrying out successful day trading cryptocurrencies is to know the right time to enter and exit. You should know when to buy the coins and when to sell them. The objective is to get the best returns on your investments. This means investors should not only monitor market trends but also make a solid technical analysis of the situation.

Setting Up a Stop-Loss Point

Investors resort to day trade cryptocurrencies to make quick profits. In addition to the direct profit-making processes, they can also earn profits indirectly. When the trader can minimize losses it will also add to his or her profits. Therefore, setting up a stop-loss point is essential. It is also indispensable while trading with crypto-currencies.

Day Trade Cryptocurrencies for Daily Profits

However, to make such daily profits you need:

  • A structured approach;
  • Rule-based strategies;
  • Protection for your existing balances; and
  • Constant monitoring of the highly volatile market trends.

Viewing and Using Charts

The best way of assessing the profitable time to day trade cryptocurrencies is to look at the charts provided by informative and educative sites.  An example is a chart below indicating Bitcoin volatility.

Studying such charts can help an investor to make an informed decision on day trading with any crypto-currency. Since the right timing and good liquidity is necessary for day trading with these digital coins using charts is indispensable for an investor.

Check Liquidity of the Chosen Cryptocurrency

The liquidity of the cryptocurrencies must be checked before you day trade crypto-currency. If the currency chosen lacks liquidity then trading with it can lead to huge losses. A correct decision can be arrived studying a 24-hour crypto trade volume chart. The following chart is an example.

Day Trading is Not Trading Everyday

Day trade cryptocurrencies do not mean that the trader will be trading every day. Instead; such trader has to tread only on those days when the conditions are favourable and they can earn profits. A good move will be to avoid trading on weekends and choose a large volume day to trade. The chart above can help the trader to choose a large volume day for trading.

Building up a Good Strategy

You need to build up a result-oriented strategy for day trading with crypto-currencies. The following steps can help you to achieve the target.

  1. Select a coin having high liquidity and volatility.
  2. Check charts like the following one to select the best.
  3. Use tools like the Money Flow Index Indicator on the chart.
  4. Do not open up your stop-loss indicator.
  5. Do not trade over one hour every time to avoid unwanted loss.

Best Cryptocurrencies for Day Trading

There are more than thousands of cryptocurrencies in circulation but all of them are not equally suitable for day trading. We recommend BTC, ETH, SOL, LINK and MATIC.

Analysing Bitcoin Dominance

Remember before trading any cryptocurrency, you should analyse the BTC Dominance to fully understand what is going on in the market.

Seek Help From The Professionals

Seek Help from the professionals - Reza Abbaszadeh Cryptocurrency

You should remember that if you want to make money from trading cryptocurrencies, you should not be afraid of getting help from those who are professionals. Here at Abbaszadeh University, we have launched an All-In-One platform called Cryptocurrency School which will unleash your ultimate potential for trading and investing in crypto assets.

Through this platform, you can benefit from a variety of features such as Technical Analysis, Fundamental Analysis, On-chain Analysis, Risk Management, Customised Online Courses and Webinars, Crypto Signals, 24/7 Support and many more.

Online Courses

Besides Abbaszadeh Cryptocurrency School, we also offer a diversity of online courses separately for those who just want to start learning more about the fundamentals of Investing and Trading cryptocurrencies as well as Tax Management in the scope of crypto.

Read Articles

In addition to our Abbaszadeh Cryptocurrency School and online courses, you can always look over our Free Content about trading.


Day trading with cryptocurrencies is easier than doing the same with fiat currencies. As these currencies are extremely volatile it enables investors to day trade cryptocurrencies with ease. Investors need the combination of the best cryptocurrency and the right timing for the best results.

"Cryptocurrency can be a good investment for you to build an extra source of income and reach financial freedom." – Reza Abbaszadeh

About the author

Abbaszadeh Team

Mr. Abbaszadeh is the founder and CEO of Abbaszadeh Entreprises consists of 4 different companies and multiple divisions within its venture portfolio. In 2019, Reza Abbaszadeh has been awarded as The Youngest Iranian Businessman by Forbes Magazine.