FX.co ★ Bitcoin forecast on March 5, 2021 – BUY SELL. Result for February is +10.93%

1. Analysis of bitcoin futures volumes from the Chicago Mercantile Exchange (CME).

2. Analysis of the long-term trend.

3. Analysis of the medium-term trend.

4. Analysis of the short-term trend.

5. Japanese candle analysis.

6. Conclusions.

7. Statistics.

1. Analysis of bitcoin futures volumes from the Chicago Mercantile Exchange (CME).

The analysis uses data on horizontal volumes from the Chicago Mercantile Exchange on daily charts. The analysis is based on the footprint-profile theory, in which the movement of the maximum volume level for the day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the upward movement of the maximum volume levels indicates an upward trend. A downward movement of the maximum volume level indicates a downward trend. Chaotic movement of the maximum volume levels indicates a flat in the market.

03.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 51690

04.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 48305

The point of control has moved down. The price is below the POC level. Perhaps a downward movement has begun, you can sell.

2. Analysis of the long-term trend.

A trend is a trader's friend. Many traders know this saying, but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way your trades will have more profit potential with less risk. According to the classical Dow theory, there are three main trends:

• long-term;
• medium-term;
• short-term.

These are the trends that are needed to be analyzed before opening any transaction. This is what we will do in this analysis.

The long-term trend in this analysis is the daily trend. Trades will be made on a daily time frame, and will be held for several days. The daily trend is analyzed using the 48-period exponential moving average (EMA (48)). If the daily candle closes above the EMA (48), it means that we are facing an upward trend and we should buy. If the daily candle closes below the EMA (48), it means that the trend is downward and we should sell.

The chart shows an upward trend. The price is higher than the EMA (48), so in this situation it is worth considering purchases.

3. Analysis of the medium-term trend.

In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). The 48-period exponential moving average (EMA (48)) will also be used for the analysis. If the H4 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H4 candle closes below the EMA (48), it means that the trend is downward and you should sell.

The price is lower than the EMA (48). Medium-term trend – downtrend, so you can sell.

4. Analysis of the short-term trend.

The short-term trend, which can well show the entry point to the market, will be considered a trend on the H1 timeframe. The 48-period exponential moving average (EMA (48)) will help us. If the H1 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H1 candle closes below the EMA (48), it means that the trend is downward and you should sell.

The price is lower than the EMA (48). Short-term trend – downward trend, you can sell.

Long-term, medium-term, and short-term trends do not coincide.

5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is used for the daily timeframe. In this analysis, we will also analyze the daily candle.

The daily candlestick closed downward, the candlestick is black. Its extreme points are within the extreme points of the previous candle. The candlestick configuration is Harami. Yesterday's candlestick has a large body. A downward movement is likely.

6. Conclusions.

• Volume analysis - SELL.
• The long-term trend - BUY.
• The medium-term trend - SELL.
• The short-term trend - SELL.
• Japanese candlestick analysis - SELL.

General conclusion: On March 5, 2021 - you can buy and sell.

7. Statistics.

To analyze the effectiveness of this approach, statistics on completed transactions are kept. Forecasts are made and transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Trading account monitoring:

The result for February 2021 is +10.93%.

Statement:

This transaction is open:

02.03.21 Bitcoin BUY: 49249.81 SL: 44455; Risk per transaction: 1% of the deposit. With a deposit of $10,000, the lot is 0.02.

For new trades, the Stop Loss is located behind the daily extreme points. We must not set a Take Profit, as we will accompany the transaction by moving the Stop Loss beyond the extreme points in the future sessions.

Since trading is conducted on daily charts, this recommendation is relevant throughout the day.

Trade with the trend, and you will gain profit!