Learn trading

All our articles to learn trading. All subjects are covered: basics, graphical analysis, technical indicators, emotions management, etc… We talk about cryptos like bitcoin or ether, but also about classical markets.

Complete tutorial on fear & greed index (FGI)

The fear & greed index (FGI) is an indicator that gives the mindset of the crypto market. It is based on many parameters, some of them technicals, some of them socials. It gives insights on when to buy and when to sell.

What is the fear & greed index (FGI) ?

The fear and greed index is an indicator, whose values goes from 0 to 100. When the value goes closer to 0, the market is in fear status. When the values goes closer to 100, the market is in greed status. In other words, when the market is in fear, actors tend to sell their assets while being in FUD (Fear, Uncertainty, Doubt) ; When the market is in greed, actors tend to buy assets while being in FOMO (Fear of Missing Opportunity). You can find the source index here : https://alternative.me/crypto/fear-and-greed-index/
The idea here is to “buy the fear”, meaning that you buy the assets that actors are selling (because of too much loss), then sell them when everybody wants them. As a result, you buy when the price hits its lows, you sell when the price hits its highs. This is a kind of strategy that whales tend to use.

Evolution of FGI through 2021
FGI in one picture

How is the fear and greed index calculated ?

How to use the FGI ?

The FGI is to be used preferably on BTC but is still quite relevant on other cryptos as BTC is still the market leader. The strategy here is to buy when FGI is in extreme fear, and sell when FGI is in extreme greed. As the FGI is calculated everyday, it is advised to use a daily strategy. Here is a simple example:

  • If the FGI goes below 15, buy.
  • If the FGI goes above 80, sell.

Bot trading with FGI

Strategy example with FGI

The best part is that this demo strategy is available on the store on botcrypto. This means that you can now create a trading robot with this strategy!


Complete tutorial on fear & greed index (FGI) Read More »

Complete tutorial on volume

Volume is defined as the sum of the volumes traded over a given period. It is often indicated at the bottom of the graph.
It is useful for detecting declines in dynamics, which precede an explosive movement. Also, it is useful for establishing statistics as to the price.
A price traded at high volume indicates a great interest on the part of the actors, which reinforces the supports or resistances.
Also, the volume allows to show the activity of the Asian, European and American markets, in order to establish which session is the most influential, therefore the session which has the most volatility.

Here is an example of a daily volume on ETHUSDT, the volume gradually reduced, indicating a loss of interest and implying that an explosive move can happen at any time.

How to use volume ?

The main interest of volume is to detect periods of weak & strong activity, by relating the price. Although mainly used as a guide, you can establish a strategy based on the convergences of price versus volume in order to detect changes in direction.

  • If the volume of the last N candles decreases and the price also decreases, it is likely that a whale will cause a surprise pump. We must therefore position ourselves to purchase.
  • If the volume of the last N candles decreases and the price also increases, it is likely that the last buyers will place themselves. We must therefore position ourselves in the sale.

Trading bot with volume, price & convergence

3 conditions on the volume (a candle of smaller volume than the previous one) and a condition on the price (decreasing price) to trigger the purchase
Test results

The best part is that this demo strategy is available on the store on botcrypto. This means that you can now create a trading robot with this strategy!


Complete tutorial on volume Read More »

Complete tutorial on pivot points

Pivot points are dynamic prices that define resistance and support relative to a benchmark price. It is easy to use which makes it a good technical indicator when starting out in technical analysis, because the “buy supports and sell resistances” method remains simple and effective. These points are mainly used on the stock market but work just as much on the crypto market.

What are the pivot points ?

Pivot points are dynamic prices that define resistance and support with respect to a reference price, noted point P). The resistances are noted R and the supports S. The closest resistance is R1 then the next one is R2 and so on until R5. The logic is the same for supports. The closer the price gets to a distant support or resistance, the more likely it is to change direction (so you have to take your profits).
The advantage of pivot points is that you have a guarantee of profit if you buy support and sell resistance. This is a significant advantage compared to moving averages.

  • If the price crosses R1 upward, the price is likely to rebound downward. If the price reaches R2, the probability of retracing is even higher.
  • If the price crosses S1 lower, the price is likely to rebound higher. If the price reaches S2, the probability of retracing is even higher.
Here is an example of daily pivot points on ETHUSDT, recalculated every first of the month (basic configuration on Trading View)

Comment est-ce que les points pivots sont calculés ?

How to use the pivot points ?

The main purpose of points is to stagger one’s buying and selling according to the position of the price. You will find 2 strategies:

Strategy 1: Buy the S1, Sell the R1
The points S1 and R1 are most often reached but offer only limited benefits. It is a simple strategy, with limited risk and advantageous for scalping, the risk of which relates to the management of allocated funds.

  • If the price hits S1, buy with 100% funds.
  • If the price hits R1, sell 100% of the position.

Strategy 2: Stagger purchases and sales
This strategy consists of removing the risk from the management of funds by dividing the volume of buying and selling according to the level reached. It’s a bit more complex to set up but your entry points and average exit points are more optimized and your profits better. It is a more effective strategy when the price is more volatile.
NB: You can combine this strategy with momentum indicators to take advantage of times of high volatility.

  • If the price hits S1, buy with 50% of the funds. If the price hits S2, buy with 30% of the funds. If the price hits S3, buy with 20% of the funds.
  • If the price hits R1, sell the first trade. If the price reaches R2, sell the 2nd trade. If the price reaches R3, sell the 3rd trade
    NB: To limit the risk, I can add a condition asking to close all trades if the price goes from R2 to R1.

Bot trading with pivot points, 2 strategies

Strategie 1
Strategie 1 results

The best part is that this demo strategy is available on the store on botcrypto. This means that you can now create a trading robot with this strategy!


Complete tutorial on pivot points Read More »

The complete tutorial on the Choppiness Index

The Choppiness Index (also called Chop index) is a reliable indicator for detecting trends & consolidation phases. It is easy to use which makes it a good technical indicator when you are a beginner in technical analysis. The Choppiness Index was created by Australian commodity trader E.W. Dreiss, based on the chaos theory (i.e. the price action is not related to any model and cannot be predicted). This is a useful indicator that helps you to allocate your funds at the right time.

What is the Chop Index ?

The Chop consists of one line that evoles in a defined range. When the Chop value is above the range, it means that the price finished its consolidation and the price will start a new trends, regardless of its direction (meaning that it can be an uptrend or a downtrend). When the Chop value is below the range, it means that the price finished its trend and will start its consolidation.

  • If the chop index value is above 62, the price is ready to start a trend.
  • If the chop index value is below 38, the price is ready to consolidate.

And the more extreme the value is, the sooner the price will enter into the phase. Think of it like an energy level of the price movement.

Here is what the chop index looks like.

How is the Chop Index calculated?

How to use the Chop Index ?

The main purpose of the Chop Index is to detect movements. So, the main use is to open an order when the trend is about to start and to close the order when the trend is about to consolidate.

  • When the Chop Index is above 62,. This is a open order signal.
  • When the Chop Index is below 38. This is a close order signal.
Yellow arrows show trends, green boxes show consolidation. Example on ETH/USDT on Binance in 1H.

The strategy of incorporating the Chop Index can be used in 1H for intraday but can be more reliable on higher periods : 1D and 1W. It doesn’t tell you in which direction the price will go, but the momentum. Do not forget to mix it with trend indicators : RSI, Vortex, …

A trading bot with the Chop Index

Example of strategy with Chop Index.
Test results with the Choppiness condition.

The best part is that this demo strategy is available on the store on botcrypto. This means that you can now create a trading robot with this strategy!


The complete tutorial on the Choppiness Index Read More »

The complete tutorial on the Vortex indicator

The Vortex is a very useful technical indicator for detecting trend reversals. It is easy to use which makes it a good technical indicator when you are a beginner in technical analysis. Unlike moving averages or RSI, it is a very recent indicator since it was invented in 2010 by Etienne Botes and Douglas Siepman. This does not change its effectiveness as you will discover in our examples…

What is the Vortex ?

The Vortex consists of two lines that capture positive and negative trends. The VI+ line represents the positive trend (in blue on the graph). The VI- line represents the negative trend (in red on the chart). The higher the value of a line, the stronger the trend it represents.

  • If VI+ is above VI-, the trend is upward (it is more positive than negative).
  • If VI- is above VI+, the trend is downward (it is more negative than positive).

And the larger the space between the two lines, the stronger the trend.

Bitcoin price chart with the Vortex indicator
Between October and November, we see that VI+ is strongly above VI-. The trend is strongly upward.

The Vortex is a general purpose indicator that can be used on all markets (stocks, forex, cryptos, …) and all time units.

How is the Vortex calculated?

How to use the Vortex ?

The main purpose of the Vortex is to detect changes in trends. So, did you understand how to detect trend changes by reading the previous paragraph? It’s easy and most importantly, it makes sense 😉

  • When the VI+ line, which represents the positive trend (in blue), crosses over the VI- line, which represents the negative trend (in red), the trend goes up. This is a buy signal.
  • When the VI+ line representing the positive trend (in blue) passes below the VI- line representing the negative trend (in red), the trend goes down. This is a sell signal.
Buy and sell signals with the Vortex on a bitcoin chart
Buy and sell signals with the Vortex on a bitcoin chart

That’s it! From a practical point of view, traders usually use the Vortex with a period of 14. However, it should be noted that the inventors of this indicator recommend a higher period for small time units. For example, a period of 34 or 55 on typical 5-minute periods.

A trading robot with the Vortex

At botcrypto, we don’t see the point of spending our days monitoring the markets. We’d rather enjoy life 😉 So here’s an example of a trading robot built on botcrypto that buys when VI+ crosses VI- up, and sells when VI+ crosses VI- down.

Diagram of the Vortex Cross strategy on botcrypto
The Vortex Cross strategy on botcrypto.

It is a very simple strategy but it already gives very good results! We can see below with a simulation on the year 2021 that there were nice buy and sell signals, for example between August and September and between October and November.

Graph of the results of a backtest with the Vortex Cross strategy on botcrypto
The result of a backtest with the Vortex Cross strategy on botcrypto.

The best part is that the Vortex Cross strategy is available on the store on botcrypto. This means that you can now create a trading robot with this strategy!


A big thanks to Nicocrypto for his contribution to this article. It is to him that you owe the addition of the Vortex on botcrypto!

The complete tutorial on the Vortex indicator Read More »

The complete tutorial on the VWAP indicator

If you are looking to determine the trend of the day to improve your positions and your results, the VWAP (Volume-Weighted Average Price) is the ideal technical indicator. Let’s go for a complete overview of this indicator, including the different ways to interpret it and an application with trading robots!

What is the VWAP (Volume-Weighted Average Price) ?

VWAP stands for Volume-Weighted Average Price. What does this mean? When you calculate an average (e.g. a moving average), all prices are taken into account in the same way. Conversely, VWAP gives more weight to prices that had a lot of volume and less weight to prices that had little volume. It thus gives a more accurate picture of what happened.

On a graph, the VWAP corresponds to a line that is added next to the prices. It is important to know that the VWAP is calculated according to a period and that it is reset at the beginning of each period. In general, it is used for a period of one day. This is why we see on the graph below the sudden movements of the indicator at the beginning of each day. It resets itself.

Graph of the VWAP indicator
Resets are visible at the beginning of each day.

The VWAP indicator is very useful for determining the direction of the trend during the day. It will quickly move above or below the prices and thus indicate the direction of the trend. If there is no trend, it will be a flat line very close to the price.

It is also worth noting that the VWAP lags behind the prices. A delay that increases from hour to hour due to its construction which integrates in the calculation all the volume data since the opening of the day. It is nonetheless interesting precisely because it integrates price and volume.

How is the VWAP calculated?

How to use the VWAP ?

The VWAP is mainly used to give the trend of the day:

  • When the price is above the VWAP, the trend is up.
  • When the price is below the VWAP, the trend is down.

It can also be used to give buy and sell signals:

  • When the price crosses the VWAP, it is a buy signal (the trend becomes bullish).
  • When the price crosses the VWAP, it is a sell signal (the trend becomes bearish).
Graph of the VWAP indicator with an upward cross
An upward cross in the VWAP indicator.

Finally, it can take on the role of support and resistance.

A trading robot with the VWAP

Why monitor charts and technical indicators yourself? One can build on the previous information to build a cryptocurrency trading robot with the VWAP. The VWAP Cross strategy below buys bitcoins when the VWAP crosses the price up (when the trend becomes bullish), and sells bitcoins when the VWAP crosses the price down (when the trend becomes bearish).

Diagram of the VWAP Cross strategy on botcrypto
The VWAP Cross strategy on botcrypto.

We can see on the results of the backtest below the different orders that have been taken.

Result of the VWAP Cross strategy on botcrypto
The result of a backtest with the VWAP Cross strategy on botcrypto.

The result is quite interesting since there is a profit of almost 20 USDT with an initial investment of 1000 USDT! But maybe the easiest way is to see for yourself? You can try the VWAP Cross strategy for free on botcrypto. You can even copy it to improve it and create your own trading strategies with VWAP.

Result of the VWAP Cross strategy on botcrypto
The result is quite interesting…

Now you know everything you need to know about using the VWAP. If you want to dig deeper into how this indicator works, CMartel94’s commentary is full of additional videos. Many thanks to him. And feel free to share your tips for the community in comments!

The complete tutorial on the VWAP indicator Read More »

3 technical indicators that indicated to sell at the Bitcoin top

A few days ago, @cryptomonk asked on his Twitter account which technical indicators could have convinced traders to sell at the Bitcoin top in April 2021. Here is a selection of the best answers.

The RSI (Relative Strength Index) indicator

RSI divergences on high time units are particularly reliable and there was no exception during the bitcoin bull run earlier this year. From the first peak on February 21, 2021, a divergence of the RSI was visible in daily. The other two peaks, on March 13, 2021 and April 13, 2021, accentuated the divergence. In the end it was a very long bearish divergence of the RSI that we could see building up little by little over several months. The price of Bitcoin was then above $56,000.

Daily RSI chart for the BTC/USDT pair
Daily RSI for the BTC/USD pair (source: TradingView)

The MACD (Moving Average Convergence Divergence) indicator

The MACD is constructed from exponential moving averages and has two lines, the MACD and the signal line. An upward crossing of the MACD with the signal line means that we have a buy signal, and a downward crossing means that we have a sell signal. And this is exactly what was observed during the candle of the week of April 19, 2021. The price of Bitcoin was then above $48,000.

MACD chart in weekly for the BTC/USD pair
The MACD in weekly for the BTC/USD pair (source: TradingView)

The Pi Cycle Top indicator

The Pi Cycle Top is a technical indicator much less known than the two previous ones. But it has the merit of having indicated the highest points of the last 3 big bitcoin bull runs! It consists of two lines, a yellow one corresponding to a MA111, and a green one corresponding to 2MA350. It is a very long term indicator that can only be used in daily trading. An upward crossing of the yellow line with the green line indicates a sell signal. The price of Bitcoin was then over $60,000!

Pi Cycle Indicator daily chart for the BTC/USD pair
The Pi Cycle Indicator in daily on the BTC/USD pair (source: lookintobitcoin.com)

And you, which technical indicators pushed you to sell at the top of bitcoin prices? Which ones prevented you from doing so? Share them in comments so everyone can be better armed during the next bull run 😉

3 technical indicators that indicated to sell at the Bitcoin top Read More »

With Dollar-Cost Averaging, invest serenely in bitcoin and cryptos

Have you heard of bitcoin? Do you want to invest in bitcoin or another cryptocurrency? Then Dollar-Cost Averaging is surely THE method you need to discover now.

What is Dollar-Cost Averaging?

This simple strategy consists of investing the same amount of money at regular intervals in order to reduce the risks associated with volatility. It is mainly intended for investors who aim for the long term. Instead of buying $1,000 of bitcoin tomorrow and taking the risk that it will lose 20% of its value in the following weeks, you can buy for $100 every month, thus smoothing your investment over time.

But does it actually work? Does Dollar-Cost Averaging improve returns and reduce risk in the long term?

Dollar-Cost Averaging in a concrete example

Let’s take a concrete example, where you discover bitcoin 3 years ago and see what happens with and without it.

Without Dollar-Cost Averaging

If you had invested this 3600$ on December 3rd 2017, you would have received 0.32 BTC. 0.32 BTC is worth $6176 at the time of writing. It is therefore a good investment but the value of your investments will have fluctuated enormously over time especially with the bursting of the bubble in early 2018.

Without Dollar-Cost Averaging

Let’s imagine that instead of buying for $3,600 3 years ago, you would have bought $100 worth of Bitcoin every month. On the dcabtc.com calculator, we can see that with the Dollar-Cost Average strategy, you would have 6812$ today. That’s nearly $700 more by investing the same amount!

Screenshot of Dollar-Cost Average simulator dcabtc.com
Screenshot of Dollar-Cost Average simulator dcabtc.com

So obviously, this added value depends on when you start your investment. In some cases where you invest at exactly the right time, Dollar-Cost Averaging will be less effective. But investing at the right time is not that easy. Dollar-Cost Averaging overcomes this difficulty by smoothing investments and reducing the risk of investing at the wrong time.

How to make a success of this strategy?

You must be wondering why I’m talking about the success of his strategy. How could we fail? It’s quite simple, isn’t it? Well, it’s not.

First, you need to define the parameters of your Dollar-Cost Averaging strategy. For example, if you want to invest in Bitcoin, you can for example choose to invest €100 every month, or €20 per week, or even €5 per day! Of course, it all depends on how much you can afford and what you want. These parameters are at your discretion.

Then, the only rule is to respect these parameters. And you’ll see that it’s not going to be that easy, especially with cryptocurrencies, which are very volatile assets. When prices go up or down all at once, it’s going to be very tempting to accelerate your investments, or to let some time go by. But then you lose all the advantage of Dollar-Cost Averaging.

An interesting solution is to use software that sends the purchase orders for you. Our platform Botcrypto allows you to easily set up trading bots that apply Dollar-Cost Averaging strategies. With a few clicks you can start your trading bot that applies a strategy like the one below, where every month a buy order for $100 of Bitcoins is sent.

Screenshot of a Dollar-Cost Averaging and bitcoin strategy on Botcrypto
This strategy buys for $100, waits 30 days, buys for $100, waits 30 days, etc.

This way, no need to log on to an exchange every month. Your trading bots take care of applying your strategy for you. You can import this strategy for free from the Botcrypto store. It’s the Monthly DCA strategy.


In conclusion, Dollar-Cost Averaging is a very interesting investment method for all those who want to invest in Bitcoin and cryptocurrencies on a long-term basis, without having to think about it on a daily basis. With this method, you reduce the risk, both upwards and downwards, but what is certain is that you gain peace of mind!

With Dollar-Cost Averaging, invest serenely in bitcoin and cryptos Read More »