Market Makers

Monday Madness — Market Makers Will Lose 1 Million DGTX in 24 Hours

Trading
• Digitex Futures
October 4, 2020

If you’ve been thinking about trading on the DFE lately, there’s never been a better time. This Monday, for 24 hours only, our automated market makers will lose a staggering total of 1 million DGTX. All the market makers on our new $1 tick size BTC/USD futures market will be programmed to lose during our “Monday Madness” campaign which kicks off at 14:00 UTC on Monday, October 5, 2020, and ends at 14:00 UTC on Tuesday, October 6, 2020.

Monday Madness – What’s In It for Traders?

With the market makers programmed to lose so much DGTX in a short space of time, all traders’ orders on the DFE will be easily filled in this ultra-liquid market. This will be a true scalpers’ paradise in which many more traders will win serious funds. So, what’s the reason behind this decision?

We’ve always said that we want to create more winning traders on the Digitex exchange and, after such a bumpy ride last week with the unexpected exchange outage and the unfortunate KuCoin hack (which, rest assured, we are still working on to bring to an adequate resolution), we wanted to start out next week on a better foot, give back to our traders and let them know how much we value them.

For the purpose of transparency, Adam will be sharing his screenshots of his PnL in our Telegram group as the day progresses to show exactly how much has been lost by the market makers–and how much has been won by traders. This is a fun, impromptu promotion, which will last for 24 hours only and we invite ALL our traders to participate.

See you there soon! If you have any additional questions, please connect with our admins in Telegram or via our 24/7 live chat feature and we’ll answer them for you there.

October 4, 2020
Trading

Monday Madness — Market Makers Will Lose 1 Million DGTX in 24 Hours

Digitex Futures
Market Makers

If you’ve been thinking about trading on the DFE lately, there’s never been a better time. This Monday, for 24 hours only, our automated market makers will lose a staggering total of 1 million DGTX. All the market makers on our new $1 tick size BTC/USD futures market will be programmed to lose during our “Monday Madness” campaign which kicks off at 14:00 UTC on Monday, October 5, 2020, and ends at 14:00 UTC on Tuesday, October 6, 2020.

Monday Madness – What’s In It for Traders?

With the market makers programmed to lose so much DGTX in a short space of time, all traders’ orders on the DFE will be easily filled in this ultra-liquid market. This will be a true scalpers’ paradise in which many more traders will win serious funds. So, what’s the reason behind this decision?

We’ve always said that we want to create more winning traders on the Digitex exchange and, after such a bumpy ride last week with the unexpected exchange outage and the unfortunate KuCoin hack (which, rest assured, we are still working on to bring to an adequate resolution), we wanted to start out next week on a better foot, give back to our traders and let them know how much we value them.

For the purpose of transparency, Adam will be sharing his screenshots of his PnL in our Telegram group as the day progresses to show exactly how much has been lost by the market makers–and how much has been won by traders. This is a fun, impromptu promotion, which will last for 24 hours only and we invite ALL our traders to participate.

See you there soon! If you have any additional questions, please connect with our admins in Telegram or via our 24/7 live chat feature and we’ll answer them for you there.

Latest News

dfe

Analyzing the Latest Markets on the DFE Testnet – Amazon and Gold

Trading
Digitex Futures
• Dave Reiter
September 24, 2020

Digitex continues to deliver on its promise of adding more trading products to the Digitex Futures Exchange (DFE). The platform is now rapidly developing a more complete product portfolio which will allow users to trade on a zero-fee, state-of-the-art one-click ladder user interface. Today, we will examine two newest markets that will soon join Bitcoin, Ether, and XRP on the mainnet. These are gold and Amazon.    

Gold  

Gold has served as a store of value and medium of exchange dating back to 550 BC when King Croesus of Lydia ordered the issuance of the first gold coin. For the past 3,000 years, countries have been using gold as part of their national monetary system. In 1660, the British Government adopted a gold standard, which officially created a direct link between gold and the value of the British Pound. Other countries soon joined Great Britain in adopting a gold standard. Even though the gold standard was abolished by the United States in 1971, gold continues to be globally accepted as a valuable asset and highly regarded as a premier store of value.

Why has gold maintained its role as a highly valuable asset during the past 3,000 years? Because the supply is limited and the demand for the “yellow metal” has remained strong for centuries. Based on data provided by the World Gold Council, the total supply of above-ground gold is 6.97 billion ounces. At first glance, 7 billion ounces may seem like a huge supply. However, if we consider the fact that 7.8 billion people currently inhabit the earth, there is only one ounce of gold available per person. This explains why gold will always remain incredibly popular as a store of value.

In regard to investing in gold, there are several different ways for investors to own gold. The most popular method for investing in gold is to purchase physical gold in the form of bullion or coins. Typically, physical gold is purchased through bullion dealers or precious metals websites. In addition to physical gold, investors can own “paper gold” through an exchange-traded fund (ETF). 

The most popular gold ETF is GLD, which was launched by State Street Global Advisors in November 2004. For those investors who prefer an added level of risk, the Commodity Exchange in New York introduced gold futures contracts in 1975. These contracts allow participants to leverage their investments while speculating on the future price direction of gold.

What type of gold investment is the Digitex Futures Exchange offering? Just like BTC, it’s a perpetual futures contract, which means there is no expiration date. Speculators can use the DFE’s state-of-the art trading platform for buying and selling perpetual gold futures contracts. Of course, the contract will be available on a commission-free basis. How many futures exchanges are providing their clients with a commission-free gold futures contract? The answer is, “zero.” DFE is the only exchange where traders can buy and sell gold futures without fees and commissions.

Long-Term Gold Forecast

Let’s examine the current trend of the gold market. We will review gold from a long-term perspective and a short-term perspective. In regard to the long-term trend, gold has been in a secular bull market since February 2001 (Chart #1).

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 1

Based on historical data, secular bull markets typically last 25 to 30 years. Therefore, the price of gold should continue to grind its way higher for the next 5 to 10 years. Of course, the market won’t advance in a straight line. There will be sharp declines along the way. However, the predominant trend will be bullish.

If gold is forecasted to move higher for the next decade, what type of price advance can we expect? Obviously, it’s impossible to accurately forecast the future price direction of any commodity. However, we can form an educated guess by using Fibonacci ratios. Prior to 2020, the all-time high for gold occurred in September 2011 @ 1923. The subsequent low was formed in December 2015 @ 1045. The range is $878 per ounce. Based on the Fibonacci ratio of 2.618, the forecasted top for gold is $4,222 per ounce (Chart #2).  

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 2

Short-Term Gold Forecast

Gold appears to have formed a short-term top on August 7 @ 2081. During the past six weeks, the market has been locked in a trading range (Chart #3). The important numbers to watch are 1874.2 and 2024.6. A bearish breakout occurs @ 1874.2. A bullish breakout occurs at 2024.6. The recent price action would suggest that the next breakout will be to the downside.

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 3

Financial websites are filled with a wide variety of technical indicators in an attempt to help traders and investors analyze various speculative assets like gold. Unfortunately, many of these indicators perform rather poorly in terms of generating profitable trading signals. However, there are a few indicators that have historically provided reliable trading signals. The Money Flow Index (MFI) has proven to work quite well in the gold market. Of course, there is no such thing as a perfect indicator. Even the best indicators have losing streaks. MFI is no exception.    

The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time. It uses price and volume to calculate trading pressure. Arguably, MFI is the purest way to determine the amount of money entering and leaving a particular security or market.

Similar to RSI, the index fluctuates between 0 and 100. In terms of gold, the best way to apply MFI is to wait for extreme readings. For example, a reading below 25 would indicate a possible short-term bottom. Conversely, a reading above 75 would indicate a possible short-term top. Please review Chart #4. The green vertical lines are buy signals. The red vertical lines are sell signals. As you can see from the chart, MFI was very successful in forecasting the recent top on August 7.  

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 4

MFI is a fairly common indicator located on most financial websites, particularly charting websites. If you are an active trader, you may want to consider adding MFI to your list of indicators.    

Amazon

When Jeff Bezos launched Amazon on July 16, 1995, he had absolutely no idea how successful his company would become. During the company’s first full year of operation in 1996, annual revenue was $15.7 million. In 2019, Amazon’s revenue was $280.5 billion. This represents an incredible increase of 1,786,524%. 

Bezos was living a middle-class existence in New York when he officially founded Amazon in 1994. Today, 25 years later, Jeff Bezos is the wealthiest man on the planet. Arguably, Amazon is the most successful company to emerge from the internet mania of the 1990s.   

Long-Term Amazon Forecast

Let’s examine the current trend of Amazon. We will review the stock from a long-term perspective and a short-term perspective. Please review Chart #5, which covers the first 10 years of Amazon’s trading history (1997 – 2007). Amazon begins its secular bull market with the final capitulation of the internet mania in October 2001 @ 5.51 per share. 

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 5

Essentially, the price of Amazon has been moving continuously higher for the past 19 years. As we discussed during our gold conversation, secular bull markets typically last 25 to 30 years. Therefore, Amazon should reach a final top between 2026 and 2031. Based on Fibonacci ratios, the forecast for a final top is 5498.73 (Chart #6).

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 6

Short-Term Amazon Forecast

It appears that Amazon formed a short-term top on September 2 @ 3552.25. Currently, the chart pattern is neutral. However, the chart will turn bearish on a weekly close below 2630.08. In order to recapture the momentum, the bulls need a weekly close above 3488.41. Please review Chart #7.   

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 7

In terms of short-term indicators, the Relative Strength Index (RSI) has worked quite well for Amazon over the years. A reading below 25 represents a buy signal. Sell signals are generated if the index moves above 75. Please review Chart #8.

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 8

This chart covers trading activity for the past 6 months. The red vertical lines depict RSI sell signals. The RSI indicator generated a perfect sell signal on September 2. Another impressive short-term sell signal was issued on July 10. You will notice that RSI has not produced any buy signals during the past six months. This is a testament to the underlying strength of Amazon.

Gold and Amazon Will Offer Excellent Trading Opportunities

Several of the world’s top traders consider gold to be the most tradeable market in terms of volatility, predictable chart patterns, repetitive cycles, and the ability to follow a trend for long periods of time. Of course, there is never an “easy” way to make money through stock and commodity speculation. However, some markets are more predictable than others. Gold is one of those markets.  

Adam and the Digitex team made the right choice when they selected gold and Amazon for the next additions to the commission-free exchange. Historically, both these markets have offered exceptional trading opportunities. In terms of volatility, both markets are near the top of the list. Obviously, the “best news” is that Digitex provides its clients with a zero-fee trading experience. And don’t forget to check out the latest market to go live on the DFE mainnet – XRP/USD – Happy trading!

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

September 24, 2020
Trading
Digitex Futures

Analyzing the Latest Markets on the DFE Testnet – Amazon and Gold

Dave Reiter
dfe

Digitex continues to deliver on its promise of adding more trading products to the Digitex Futures Exchange (DFE). The platform is now rapidly developing a more complete product portfolio which will allow users to trade on a zero-fee, state-of-the-art one-click ladder user interface. Today, we will examine two newest markets that will soon join Bitcoin, Ether, and XRP on the mainnet. These are gold and Amazon.    

Gold  

Gold has served as a store of value and medium of exchange dating back to 550 BC when King Croesus of Lydia ordered the issuance of the first gold coin. For the past 3,000 years, countries have been using gold as part of their national monetary system. In 1660, the British Government adopted a gold standard, which officially created a direct link between gold and the value of the British Pound. Other countries soon joined Great Britain in adopting a gold standard. Even though the gold standard was abolished by the United States in 1971, gold continues to be globally accepted as a valuable asset and highly regarded as a premier store of value.

Why has gold maintained its role as a highly valuable asset during the past 3,000 years? Because the supply is limited and the demand for the “yellow metal” has remained strong for centuries. Based on data provided by the World Gold Council, the total supply of above-ground gold is 6.97 billion ounces. At first glance, 7 billion ounces may seem like a huge supply. However, if we consider the fact that 7.8 billion people currently inhabit the earth, there is only one ounce of gold available per person. This explains why gold will always remain incredibly popular as a store of value.

In regard to investing in gold, there are several different ways for investors to own gold. The most popular method for investing in gold is to purchase physical gold in the form of bullion or coins. Typically, physical gold is purchased through bullion dealers or precious metals websites. In addition to physical gold, investors can own “paper gold” through an exchange-traded fund (ETF). 

The most popular gold ETF is GLD, which was launched by State Street Global Advisors in November 2004. For those investors who prefer an added level of risk, the Commodity Exchange in New York introduced gold futures contracts in 1975. These contracts allow participants to leverage their investments while speculating on the future price direction of gold.

What type of gold investment is the Digitex Futures Exchange offering? Just like BTC, it’s a perpetual futures contract, which means there is no expiration date. Speculators can use the DFE’s state-of-the art trading platform for buying and selling perpetual gold futures contracts. Of course, the contract will be available on a commission-free basis. How many futures exchanges are providing their clients with a commission-free gold futures contract? The answer is, “zero.” DFE is the only exchange where traders can buy and sell gold futures without fees and commissions.

Long-Term Gold Forecast

Let’s examine the current trend of the gold market. We will review gold from a long-term perspective and a short-term perspective. In regard to the long-term trend, gold has been in a secular bull market since February 2001 (Chart #1).

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 9

Based on historical data, secular bull markets typically last 25 to 30 years. Therefore, the price of gold should continue to grind its way higher for the next 5 to 10 years. Of course, the market won’t advance in a straight line. There will be sharp declines along the way. However, the predominant trend will be bullish.

If gold is forecasted to move higher for the next decade, what type of price advance can we expect? Obviously, it’s impossible to accurately forecast the future price direction of any commodity. However, we can form an educated guess by using Fibonacci ratios. Prior to 2020, the all-time high for gold occurred in September 2011 @ 1923. The subsequent low was formed in December 2015 @ 1045. The range is $878 per ounce. Based on the Fibonacci ratio of 2.618, the forecasted top for gold is $4,222 per ounce (Chart #2).  

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 10

Short-Term Gold Forecast

Gold appears to have formed a short-term top on August 7 @ 2081. During the past six weeks, the market has been locked in a trading range (Chart #3). The important numbers to watch are 1874.2 and 2024.6. A bearish breakout occurs @ 1874.2. A bullish breakout occurs at 2024.6. The recent price action would suggest that the next breakout will be to the downside.

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 11

Financial websites are filled with a wide variety of technical indicators in an attempt to help traders and investors analyze various speculative assets like gold. Unfortunately, many of these indicators perform rather poorly in terms of generating profitable trading signals. However, there are a few indicators that have historically provided reliable trading signals. The Money Flow Index (MFI) has proven to work quite well in the gold market. Of course, there is no such thing as a perfect indicator. Even the best indicators have losing streaks. MFI is no exception.    

The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time. It uses price and volume to calculate trading pressure. Arguably, MFI is the purest way to determine the amount of money entering and leaving a particular security or market.

Similar to RSI, the index fluctuates between 0 and 100. In terms of gold, the best way to apply MFI is to wait for extreme readings. For example, a reading below 25 would indicate a possible short-term bottom. Conversely, a reading above 75 would indicate a possible short-term top. Please review Chart #4. The green vertical lines are buy signals. The red vertical lines are sell signals. As you can see from the chart, MFI was very successful in forecasting the recent top on August 7.  

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 12

MFI is a fairly common indicator located on most financial websites, particularly charting websites. If you are an active trader, you may want to consider adding MFI to your list of indicators.    

Amazon

When Jeff Bezos launched Amazon on July 16, 1995, he had absolutely no idea how successful his company would become. During the company’s first full year of operation in 1996, annual revenue was $15.7 million. In 2019, Amazon’s revenue was $280.5 billion. This represents an incredible increase of 1,786,524%. 

Bezos was living a middle-class existence in New York when he officially founded Amazon in 1994. Today, 25 years later, Jeff Bezos is the wealthiest man on the planet. Arguably, Amazon is the most successful company to emerge from the internet mania of the 1990s.   

Long-Term Amazon Forecast

Let’s examine the current trend of Amazon. We will review the stock from a long-term perspective and a short-term perspective. Please review Chart #5, which covers the first 10 years of Amazon’s trading history (1997 – 2007). Amazon begins its secular bull market with the final capitulation of the internet mania in October 2001 @ 5.51 per share. 

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 13

Essentially, the price of Amazon has been moving continuously higher for the past 19 years. As we discussed during our gold conversation, secular bull markets typically last 25 to 30 years. Therefore, Amazon should reach a final top between 2026 and 2031. Based on Fibonacci ratios, the forecast for a final top is 5498.73 (Chart #6).

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 14

Short-Term Amazon Forecast

It appears that Amazon formed a short-term top on September 2 @ 3552.25. Currently, the chart pattern is neutral. However, the chart will turn bearish on a weekly close below 2630.08. In order to recapture the momentum, the bulls need a weekly close above 3488.41. Please review Chart #7.   

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 15

In terms of short-term indicators, the Relative Strength Index (RSI) has worked quite well for Amazon over the years. A reading below 25 represents a buy signal. Sell signals are generated if the index moves above 75. Please review Chart #8.

Analyzing the Latest Markets on the DFE Testnet - Amazon and Gold 16

This chart covers trading activity for the past 6 months. The red vertical lines depict RSI sell signals. The RSI indicator generated a perfect sell signal on September 2. Another impressive short-term sell signal was issued on July 10. You will notice that RSI has not produced any buy signals during the past six months. This is a testament to the underlying strength of Amazon.

Gold and Amazon Will Offer Excellent Trading Opportunities

Several of the world’s top traders consider gold to be the most tradeable market in terms of volatility, predictable chart patterns, repetitive cycles, and the ability to follow a trend for long periods of time. Of course, there is never an “easy” way to make money through stock and commodity speculation. However, some markets are more predictable than others. Gold is one of those markets.  

Adam and the Digitex team made the right choice when they selected gold and Amazon for the next additions to the commission-free exchange. Historically, both these markets have offered exceptional trading opportunities. In terms of volatility, both markets are near the top of the list. Obviously, the “best news” is that Digitex provides its clients with a zero-fee trading experience. And don’t forget to check out the latest market to go live on the DFE mainnet – XRP/USD – Happy trading!

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

Latest News

Trade

Trade Bitcoin Futures and Easily Make Money

Trading
• Digitex Futures
September 11, 2020

In this demo video trading bitcoin futures on the Digitex Futures exchange, former pit trader and Digitex CEO Adam Todd explains the features that make our exchange unique and shows how easy it is to make money, racking up almost $60 in just one 20-minute session. As he says in the video, there’s a misconception about how complicated trading bitcoin futures is, but it’s actually very simple. Check it out.

Trading on Digitex Futures

Digitex Futures launched in July 2020 and particularly caters to highly aggressive short-term traders known as scalpers. With the one-click trading ladder interface that Digitex provides, when time is of the essence, it allows them to capitalize on the smallest fluctuations in price. Watching Adam trade, you can see that what he says is true: you really don’t need to know anything about the underlying asset (in this case, Bitcoin) or the mechanics of cryptocurrencies. You simply need to follow the price action.

He starts out the session by giving viewers an overview of the ladder, saying that in the middle of the ladder, traders can see the price of Bitcoin and on the left and right, the number of contracts that they want to buy or sell. He shows how simple it is to select contracts, and trade with minimal effort:

“So basically, it’s one click to buy, one click to sell, and my mouse never moves out of this area ever again for the rest of the session,” he says. 

In this video clip, you can also observe the sophistication and attention to detail of the interface as Adam trades with Digitex’s signature purple and blue colors. However, Digitex is customizable in four different color themes including traditional green and red to suit the preferences of all traders.

Adam says, “it’s very easy, you can trade for 15 minutes, 20 minutes, and just grind out those single-tick profits.” That’s because scalping, unlike other forms of trading, doesn’t require you to assume high risk or take out a large position. Scalpers aim to accumulate small profits over time. So, $60 may not seem like much in the grand scheme of things, but we’re talking about a session of under 20 minutes. Just think how much money you could make trading bitcoin futures this way as you accumulate small profits over time.

Trading with No Commissions

The real beauty of the exchange beyond this intuitive interface is the fact that there are no commissions. This is what really allows this type of trading to be viable since commission fees eat into the profits of traders on every other platform, sometimes even turning a winning trade into a losing one. 

On Digitex, you can trade over and over to your heart’s content without ever paying a single fee. You get to keep 100% of the profits you make. 

Watching the video as Adam trades gives a real taste for what it’s like to trade, placing your full concentration on the price movement as he aggressively seeks out single-tick profits. Watch as his orders get filled and he makes profits, losses, and scratch trades in real-time. See how fast-paced trading is on the DFE as he holds on to a position for sometimes only seconds before selling.

He points out several times that you don’t need to know anything about cryptocurrencies to successfully trade on the DFE. He admits that he himself hasn’t “got a clue what Bitcoin is doing right now. There are zero fundamentals to my trading.” He emphasizes that he is just trying to buy low and sell high. Again, you don’t need to know anything at all about BTC, simply keep your eye on the price action to be successful. 

Adam finishes the session up by 1501 DGTX, or roughly $60, and says that the key thing he wants you to take away from it is that he uses no fundamental whatsoever, so it could have been BTC, ETH, or even gold, the strategy is the same. “Scalping is the way forward, “he says, “zero-fee trading is very easy.”

Sign-up on the Digitex Futures exchange today and easily start making money!

 

September 11, 2020
Trading

Trade Bitcoin Futures and Easily Make Money

Digitex Futures
Trade

In this demo video trading bitcoin futures on the Digitex Futures exchange, former pit trader and Digitex CEO Adam Todd explains the features that make our exchange unique and shows how easy it is to make money, racking up almost $60 in just one 20-minute session. As he says in the video, there’s a misconception about how complicated trading bitcoin futures is, but it’s actually very simple. Check it out.

Trading on Digitex Futures

Digitex Futures launched in July 2020 and particularly caters to highly aggressive short-term traders known as scalpers. With the one-click trading ladder interface that Digitex provides, when time is of the essence, it allows them to capitalize on the smallest fluctuations in price. Watching Adam trade, you can see that what he says is true: you really don’t need to know anything about the underlying asset (in this case, Bitcoin) or the mechanics of cryptocurrencies. You simply need to follow the price action.

He starts out the session by giving viewers an overview of the ladder, saying that in the middle of the ladder, traders can see the price of Bitcoin and on the left and right, the number of contracts that they want to buy or sell. He shows how simple it is to select contracts, and trade with minimal effort:

“So basically, it’s one click to buy, one click to sell, and my mouse never moves out of this area ever again for the rest of the session,” he says. 

In this video clip, you can also observe the sophistication and attention to detail of the interface as Adam trades with Digitex’s signature purple and blue colors. However, Digitex is customizable in four different color themes including traditional green and red to suit the preferences of all traders.

Adam says, “it’s very easy, you can trade for 15 minutes, 20 minutes, and just grind out those single-tick profits.” That’s because scalping, unlike other forms of trading, doesn’t require you to assume high risk or take out a large position. Scalpers aim to accumulate small profits over time. So, $60 may not seem like much in the grand scheme of things, but we’re talking about a session of under 20 minutes. Just think how much money you could make trading bitcoin futures this way as you accumulate small profits over time.

Trading with No Commissions

The real beauty of the exchange beyond this intuitive interface is the fact that there are no commissions. This is what really allows this type of trading to be viable since commission fees eat into the profits of traders on every other platform, sometimes even turning a winning trade into a losing one. 

On Digitex, you can trade over and over to your heart’s content without ever paying a single fee. You get to keep 100% of the profits you make. 

Watching the video as Adam trades gives a real taste for what it’s like to trade, placing your full concentration on the price movement as he aggressively seeks out single-tick profits. Watch as his orders get filled and he makes profits, losses, and scratch trades in real-time. See how fast-paced trading is on the DFE as he holds on to a position for sometimes only seconds before selling.

He points out several times that you don’t need to know anything about cryptocurrencies to successfully trade on the DFE. He admits that he himself hasn’t “got a clue what Bitcoin is doing right now. There are zero fundamentals to my trading.” He emphasizes that he is just trying to buy low and sell high. Again, you don’t need to know anything at all about BTC, simply keep your eye on the price action to be successful. 

Adam finishes the session up by 1501 DGTX, or roughly $60, and says that the key thing he wants you to take away from it is that he uses no fundamental whatsoever, so it could have been BTC, ETH, or even gold, the strategy is the same. “Scalping is the way forward, “he says, “zero-fee trading is very easy.”

Sign-up on the Digitex Futures exchange today and easily start making money!

 

Latest News

digitex

The Digitex Trading API Has Landed – Cryptrader Shows You How to Use It

Digitex Futures
Trading
• Digitex Futures
August 12, 2020

You’ve been clogging up our Telegram chat asking about the trading API, and we know how in-demand it is. So, we’re delighted to say that it is now live and fully integrated on the mainnet. But before you get started, make sure you check out this informative video by resident DFE trader Cryptrader. In his words, “the API is your key to unlocking programmable actions for your trading account.” 

The Digitex Trading API

The Digitex Trading API can be used for activities such as reading market data by data aggregator sites like CoinMarketCap, for sending trade histories, facilitating copy trading, and developing automated strategies on a bot. There are already several third-party bots being developed on the Digitex platform which means we’re getting closer to seeing automated trading on the exchange. 

As Cryptrader points out, more trading bot action will improve liquidity, and lessen the wicks by minimizing the occasional divergence of the spot and futures price on the exchange during moments of low liquidity. There will also be a lot more activity when the bots start taking liquidity as well. 

How to Access the API

Cryptrader shows you how to access the trading API. You can get to it by heading to the Account tab and clicking on the API section. Then you can create your API key simply with one click and easily copy and paste it. You’ll need this key to insert into third-party applications so that you can utilize copy trading, automated strategy, and other activities. If for any reason, you need a new API key, you can easily delete your current one and create a new one here.

If you’re a developer, you can access all the API application data on Github by following the link to the page if you’re interested in developing on the Digitex exchange.

ContractMarketCap

ContractMarketCap is already using our trading API. If you haven’t visited this data aggregator site yet, be sure to check it out. It’s essentially just like CoinMarketCap but for futures exchanges. Simply click on the link to visit the page, scroll down to Bitcoin derivatives, and you can see the DGTX perpetual Bitcoin contract, the amount of volume over 24 hours, and the rate of open interest. Cryptrader points out that, as time goes on, DGTX will be listed on further sites through this API, so keep your eyes open for that.

If you’re an algorithmic trader or developer, now is a good time to start creating some strategies to take advantage of Digitex’s zero fees. And for those of you waiting to participate in automated trading, it won’t be much longer before the third-party bots in development are ready for your use. Thanks for all your continued support and be sure to keep up with our socials and blog for more updates and info to come.

August 12, 2020
Digitex Futures
Trading

The Digitex Trading API Has Landed – Cryptrader Shows You How to Use It

Digitex Futures
digitex

You’ve been clogging up our Telegram chat asking about the trading API, and we know how in-demand it is. So, we’re delighted to say that it is now live and fully integrated on the mainnet. But before you get started, make sure you check out this informative video by resident DFE trader Cryptrader. In his words, “the API is your key to unlocking programmable actions for your trading account.” 

The Digitex Trading API

The Digitex Trading API can be used for activities such as reading market data by data aggregator sites like CoinMarketCap, for sending trade histories, facilitating copy trading, and developing automated strategies on a bot. There are already several third-party bots being developed on the Digitex platform which means we’re getting closer to seeing automated trading on the exchange. 

As Cryptrader points out, more trading bot action will improve liquidity, and lessen the wicks by minimizing the occasional divergence of the spot and futures price on the exchange during moments of low liquidity. There will also be a lot more activity when the bots start taking liquidity as well. 

How to Access the API

Cryptrader shows you how to access the trading API. You can get to it by heading to the Account tab and clicking on the API section. Then you can create your API key simply with one click and easily copy and paste it. You’ll need this key to insert into third-party applications so that you can utilize copy trading, automated strategy, and other activities. If for any reason, you need a new API key, you can easily delete your current one and create a new one here.

If you’re a developer, you can access all the API application data on Github by following the link to the page if you’re interested in developing on the Digitex exchange.

ContractMarketCap

ContractMarketCap is already using our trading API. If you haven’t visited this data aggregator site yet, be sure to check it out. It’s essentially just like CoinMarketCap but for futures exchanges. Simply click on the link to visit the page, scroll down to Bitcoin derivatives, and you can see the DGTX perpetual Bitcoin contract, the amount of volume over 24 hours, and the rate of open interest. Cryptrader points out that, as time goes on, DGTX will be listed on further sites through this API, so keep your eyes open for that.

If you’re an algorithmic trader or developer, now is a good time to start creating some strategies to take advantage of Digitex’s zero fees. And for those of you waiting to participate in automated trading, it won’t be much longer before the third-party bots in development are ready for your use. Thanks for all your continued support and be sure to keep up with our socials and blog for more updates and info to come.

Latest News

Trade

Learn to Trade Profitably with Trader Cobb

Trading
• Digitex Futures
August 10, 2020

If you read Fridays blog post, then youll know we have a stellar lineup of educational content coming for the DFE. Trading profitably is both an art and a science, but anyone can learn it, given the right tools. Here, we dive into whats coming up starting this week, from pro trader and educator, Trader Cobb. Read to the end to also find out whats coming up this week on the DFE.

Craig Cobb, better known as Trader Cobb, is one of the best-known pro traders and crypto trading educators in the business. He has over 15 years of experience, having started out in the traditional markets trading forex pairs, stocks, bonds, and commodities.

For the last three years, he’s been fully dedicated to cryptocurrency trading. With over 10,000 students around the world, there is nobody better to help you unravel the mysteries of scalp trading on the Digitex Futures exchange.

Over the course of four separate webinar sessions, Craig will teach you the tools he has learned to use over his 15-year trading career. These tools will help you increase your chances of trading success, decrease your loss risk, and take emotions out of the process so you’ll trade based on facts.

You’ll receive a complete trading strategy with a checklist to follow as you go. You’ll also get a trading business plan. Craig is a firm believer that trading isn’t just about charts – you should treat it as you would a business. So you’ll also get a trading business plan to help you as you transition from developing your trading hobby into a business.

How to Join

The best news is that joining Craig’s webinars is completely free! There are only two simple prerequisites. Firstly, you’ll need to have an account on the Digitex Futures exchange so that you can follow along with the webinar instructions. Secondly, you should sign up for the webinar on the dedicated registration page.

That’s it! All you then need to do is turn up on the dates, and watch and learn as Craig unveils his trading strategy over four separate sessions.

Webinar Schedule of Events

The full schedule of events is as follows. Please note that as Craig is broadcasting from his home in Australia, the timezones given are in Australian Eastern Standard Time (AEST). We’ve provided times here in UTC too.

Part 1: High Probability

Thursday, August 13, 2020, 9 pm AEST/11 am UTC

Every building needs solid foundations, and your trading business and plan need the same. This chapter will help you to plan out the type of trader you will become and provide you the blueprint that you will create with Craig’s guidance to move forward through the chapters. Trading is a business and we need to plan it!

Part 2: Master Price Action

Thursday, August 20, 2020, 9 pm AEST/11 am UTC

When you bake a cake you need to know the ingredients for that cake, you don’t need to know about cooking a lasagna. Craig will focus you on the ingredients needed to bake the perfect trade – process-driven, outcome-based, and zero emotions. You’ve got that here.

Part 3: The Crypto Cradle Strategy

Thursday, August 27, 2020, 9 pm AEST/11 am UTC

This is what most people have been waiting for! In parts 1 and 2, you have set out to plan the type of trader you wish to be and learned the ingredients to be ready for this part 3.

You’re now ready to learn and use the “Crypto Cradle” strategy; arguably the most common trading set up out there.

Part 4: Management of Risk, Mindset, and Progress

Thursday, September 3, 2020, 9 pm AEST/11 am UTC

You have the strategy from the first three webinar episodes of this series, you have the scans and watch list videos, and now it’s about keeping your headstrong and keeping the account growing!

Especially if you’re new to trading or scalping, you don’t want to miss this series. Make sure you sign up before the start time to secure your slot and share it with any of your friends who want to learn more about profitable scalp trading on the DFE!

What’s Coming Up This Week on the DFE

Along with Craig’s webinars, we have some much-anticipated updates to the DFE being rolled out this week. First up, the API will be launched on mainnet, allowing algorithmic traders to plug in their bots and trade automatically for the first time. We know that the API has been in demand ever since we started onboarding traders to the mainnet, and we’re looking forward to the further injection of liquidity that it will bring to the DFE. Watch the blog for a video from Cryptrader explaining how to use it.

Secondly, we explained last week that we are closing the Digitex Treasury and replacing it with the DGTX Converter. The Converter will allow users to deposit a variety of cryptocurrencies, including BTC, ETH, and USDT, onto the DFE and convert them to DGTX so they can start trading with zero fees.

The development team has been working extremely hard to bring this to life, and we’re pleased to confirm it will go live on the testnet later this week. As soon as it’s proving to work without any issue, we will migrate it to the mainnet.

Keep watching the blog for more updates about DFE features and functionality, as they happen. And if you want more information about what to expect, check out our recently published roadmap, which lays out everything still to come in 2020. Stay tuned!

August 10, 2020
Trading

Learn to Trade Profitably with Trader Cobb

Digitex Futures
Trade

If you read Fridays blog post, then youll know we have a stellar lineup of educational content coming for the DFE. Trading profitably is both an art and a science, but anyone can learn it, given the right tools. Here, we dive into whats coming up starting this week, from pro trader and educator, Trader Cobb. Read to the end to also find out whats coming up this week on the DFE.

Craig Cobb, better known as Trader Cobb, is one of the best-known pro traders and crypto trading educators in the business. He has over 15 years of experience, having started out in the traditional markets trading forex pairs, stocks, bonds, and commodities.

For the last three years, he’s been fully dedicated to cryptocurrency trading. With over 10,000 students around the world, there is nobody better to help you unravel the mysteries of scalp trading on the Digitex Futures exchange.

Over the course of four separate webinar sessions, Craig will teach you the tools he has learned to use over his 15-year trading career. These tools will help you increase your chances of trading success, decrease your loss risk, and take emotions out of the process so you’ll trade based on facts.

You’ll receive a complete trading strategy with a checklist to follow as you go. You’ll also get a trading business plan. Craig is a firm believer that trading isn’t just about charts – you should treat it as you would a business. So you’ll also get a trading business plan to help you as you transition from developing your trading hobby into a business.

How to Join

The best news is that joining Craig’s webinars is completely free! There are only two simple prerequisites. Firstly, you’ll need to have an account on the Digitex Futures exchange so that you can follow along with the webinar instructions. Secondly, you should sign up for the webinar on the dedicated registration page.

That’s it! All you then need to do is turn up on the dates, and watch and learn as Craig unveils his trading strategy over four separate sessions.

Webinar Schedule of Events

The full schedule of events is as follows. Please note that as Craig is broadcasting from his home in Australia, the timezones given are in Australian Eastern Standard Time (AEST). We’ve provided times here in UTC too.

Part 1: High Probability

Thursday, August 13, 2020, 9 pm AEST/11 am UTC

Every building needs solid foundations, and your trading business and plan need the same. This chapter will help you to plan out the type of trader you will become and provide you the blueprint that you will create with Craig’s guidance to move forward through the chapters. Trading is a business and we need to plan it!

Part 2: Master Price Action

Thursday, August 20, 2020, 9 pm AEST/11 am UTC

When you bake a cake you need to know the ingredients for that cake, you don’t need to know about cooking a lasagna. Craig will focus you on the ingredients needed to bake the perfect trade – process-driven, outcome-based, and zero emotions. You’ve got that here.

Part 3: The Crypto Cradle Strategy

Thursday, August 27, 2020, 9 pm AEST/11 am UTC

This is what most people have been waiting for! In parts 1 and 2, you have set out to plan the type of trader you wish to be and learned the ingredients to be ready for this part 3.

You’re now ready to learn and use the “Crypto Cradle” strategy; arguably the most common trading set up out there.

Part 4: Management of Risk, Mindset, and Progress

Thursday, September 3, 2020, 9 pm AEST/11 am UTC

You have the strategy from the first three webinar episodes of this series, you have the scans and watch list videos, and now it’s about keeping your headstrong and keeping the account growing!

Especially if you’re new to trading or scalping, you don’t want to miss this series. Make sure you sign up before the start time to secure your slot and share it with any of your friends who want to learn more about profitable scalp trading on the DFE!

What’s Coming Up This Week on the DFE

Along with Craig’s webinars, we have some much-anticipated updates to the DFE being rolled out this week. First up, the API will be launched on mainnet, allowing algorithmic traders to plug in their bots and trade automatically for the first time. We know that the API has been in demand ever since we started onboarding traders to the mainnet, and we’re looking forward to the further injection of liquidity that it will bring to the DFE. Watch the blog for a video from Cryptrader explaining how to use it.

Secondly, we explained last week that we are closing the Digitex Treasury and replacing it with the DGTX Converter. The Converter will allow users to deposit a variety of cryptocurrencies, including BTC, ETH, and USDT, onto the DFE and convert them to DGTX so they can start trading with zero fees.

The development team has been working extremely hard to bring this to life, and we’re pleased to confirm it will go live on the testnet later this week. As soon as it’s proving to work without any issue, we will migrate it to the mainnet.

Keep watching the blog for more updates about DFE features and functionality, as they happen. And if you want more information about what to expect, check out our recently published roadmap, which lays out everything still to come in 2020. Stay tuned!

Latest News

5 Key Principles to Trade Futures Successfully 17

5 Key Principles to Trade Futures Successfully

Trading
• Digitex Futures
August 5, 2020

Digitex Futures opened to the public on July 31, 2020, with a launch day event filled with experienced traders and influencers in the crypto space. The main pull of Digitex is obvious: zero fees. Yet, beyond a platform that allows traders to enter and exit trades without punishing commissions, Digitex offers a whole lot more besides. Find out why trading futures on a one-click ladder is so important, how it changed this one person’s life–and how you can easily learn to trade as well, following these key points.

1. Anyone Can Learn to Scalp on Any Markets

Adam and Mika quickly hit it off as Mika shared how he had first come to scalping after reading an article that Adam had written around 15 years ago in Racing Traders. The article describes how Adam had started making a living scalping profits from trading horse racing bets on Betfair, using an initial stake he had loaned from his father.

As Mika says:

“I took your strategy, that you had implemented on Betfair, and I started scalping. It was amazing! I started to be profitable. With this small article, you changed my life.”

Mika had no other input than this one piece of writing from Adam, and yet he quickly managed to start turning a profit using a few simple rules. This is how he ended up finding out about the DFE. Mika goes on to describe how he managed a 60-day run of profitability on the Digitex testnet at launch.

So don’t be put off – if you’ve been thinking about experimenting with scalping, there is no better time to start.

2. You Don’t Need Charts or Indicators

Charts and technical indicators have their place, and many traders use them and find they give reliable results. However, Mika explains that he managed to accrue a balance of 100,000 DGTX from an initial stake of just 50,000 DGTX, without ever using a chart or an indicator. He simply scrapes in his one or two tick profit as soon as it’s available and moves onto the next trade.

3. You Don’t Need to Know the Markets

Mika openly admits that he knows nothing about virtual assets. In fact, DGTX was his first-ever purchase, and he bought in solely for the opportunity of zero-fee trading via the ladder interface. Long-time supporters will know that Adam developed a trading ladder application for Betfair, called BetTrader, and along with Adam’s strategy, Mika was also a keen user of BetTrader.

The overall lesson is, as Adam has always said, you don’t need to know what you’re buying or selling. You just need to read the markets. During the talk, they both agreed they were never fans of blockchain or horse racing for their own sake, as much as the market for buying or selling the product itself. Successful trading is the ultimate freedom.

4. Be Disciplined

Mika outlines a few simple rules that he always follows.

“The most important rule is to always follow the rules. Never try and predict the market. Take the profit when its there – two or three, or even one tick. And I hate losses. A two-tick loss is the maximum I will tolerate.”

Adam concurs, stating:

“You have to be strict with those losses. That’s where people get it wrong. I found a direct correlation between the longer I held positions and the more successful I was. The shorter I held a position, the more I was able to avoid the losses.”

5. Virtual Assets Are the Best Medium for Scalping

While it’s true that you can scalp any markets, Adam and Mika agree that virtual assets lend themselves well to scalping. The horse racing markets demand that you’re online while the race takes place. A football game is only 90 minutes long.

Furthermore, most sports have been ravaged by incidents such as strikes or the current pandemic.

Crypto is a digital medium, and the trading is 24/7 – it never stops. Therefore, there’s always an opportunity to scalp a profit, no matter where you are in the world.

That said, Mika also asked Adam when he could expect multiple ladders, which were available in Adam’s BetTrader app. Once we launch more markets on the DFE, including ETH, gold, oil, and the S&P, we will have multiple markets on multiple ladders on the same screen.

Two scalp traders with the same strategy and the same visions chatting live and unscripted – the enthusiasm was palpable. If you missed the live event, then we’d urge you to watch this chat in particular, as it encapsulates everything that Adam and Digitex have been working towards delivering, in under 30 minutes.

Are you ready to try your hand? Sign up here to start trading Bitcoin futures with zero fees today.

August 5, 2020
Trading

5 Key Principles to Trade Futures Successfully

Digitex Futures
5 Key Principles to Trade Futures Successfully 18

Digitex Futures opened to the public on July 31, 2020, with a launch day event filled with experienced traders and influencers in the crypto space. The main pull of Digitex is obvious: zero fees. Yet, beyond a platform that allows traders to enter and exit trades without punishing commissions, Digitex offers a whole lot more besides. Find out why trading futures on a one-click ladder is so important, how it changed this one person’s life–and how you can easily learn to trade as well, following these key points.

1. Anyone Can Learn to Scalp on Any Markets

Adam and Mika quickly hit it off as Mika shared how he had first come to scalping after reading an article that Adam had written around 15 years ago in Racing Traders. The article describes how Adam had started making a living scalping profits from trading horse racing bets on Betfair, using an initial stake he had loaned from his father.

As Mika says:

“I took your strategy, that you had implemented on Betfair, and I started scalping. It was amazing! I started to be profitable. With this small article, you changed my life.”

Mika had no other input than this one piece of writing from Adam, and yet he quickly managed to start turning a profit using a few simple rules. This is how he ended up finding out about the DFE. Mika goes on to describe how he managed a 60-day run of profitability on the Digitex testnet at launch.

So don’t be put off – if you’ve been thinking about experimenting with scalping, there is no better time to start.

2. You Don’t Need Charts or Indicators

Charts and technical indicators have their place, and many traders use them and find they give reliable results. However, Mika explains that he managed to accrue a balance of 100,000 DGTX from an initial stake of just 50,000 DGTX, without ever using a chart or an indicator. He simply scrapes in his one or two tick profit as soon as it’s available and moves onto the next trade.

3. You Don’t Need to Know the Markets

Mika openly admits that he knows nothing about virtual assets. In fact, DGTX was his first-ever purchase, and he bought in solely for the opportunity of zero-fee trading via the ladder interface. Long-time supporters will know that Adam developed a trading ladder application for Betfair, called BetTrader, and along with Adam’s strategy, Mika was also a keen user of BetTrader.

The overall lesson is, as Adam has always said, you don’t need to know what you’re buying or selling. You just need to read the markets. During the talk, they both agreed they were never fans of blockchain or horse racing for their own sake, as much as the market for buying or selling the product itself. Successful trading is the ultimate freedom.

4. Be Disciplined

Mika outlines a few simple rules that he always follows.

“The most important rule is to always follow the rules. Never try and predict the market. Take the profit when its there – two or three, or even one tick. And I hate losses. A two-tick loss is the maximum I will tolerate.”

Adam concurs, stating:

“You have to be strict with those losses. That’s where people get it wrong. I found a direct correlation between the longer I held positions and the more successful I was. The shorter I held a position, the more I was able to avoid the losses.”

5. Virtual Assets Are the Best Medium for Scalping

While it’s true that you can scalp any markets, Adam and Mika agree that virtual assets lend themselves well to scalping. The horse racing markets demand that you’re online while the race takes place. A football game is only 90 minutes long.

Furthermore, most sports have been ravaged by incidents such as strikes or the current pandemic.

Crypto is a digital medium, and the trading is 24/7 – it never stops. Therefore, there’s always an opportunity to scalp a profit, no matter where you are in the world.

That said, Mika also asked Adam when he could expect multiple ladders, which were available in Adam’s BetTrader app. Once we launch more markets on the DFE, including ETH, gold, oil, and the S&P, we will have multiple markets on multiple ladders on the same screen.

Two scalp traders with the same strategy and the same visions chatting live and unscripted – the enthusiasm was palpable. If you missed the live event, then we’d urge you to watch this chat in particular, as it encapsulates everything that Adam and Digitex have been working towards delivering, in under 30 minutes.

Are you ready to try your hand? Sign up here to start trading Bitcoin futures with zero fees today.

Latest News

scalping

Level Up Your Scalping with These Candlestick Patterns

Trading
Uncategorized
• Ali Martinez
July 29, 2020

On Friday, July 31, Digitex Futures opened the doors with zero-commission cryptocurrency futures trading to the public for the very first time. Even two days before the official release, the DFE platform had reached an astounding 24-hour volume high of $2.9 billion in trading volume on Tuesday, July 28, 2020.

With this exciting new platform to trade on, there is no better time to understand how to use the platform and learn the basics of how to trade virtual asset derivative products. More importantly, having the ability to quickly recognize candlestick patterns can make trading strategies such as scalping highly profitable.

Candlestick Patterns to Level Up Your Scalping Strategy

As the virtual assets market sits on the cusp of its next bullish cycle, having a solid trading strategy is a must. Understanding when to buy and sell can make a huge difference in anyone’s portfolio.  Although trading is not necessarily easy, there are a number of easy-to-spot candlestick patterns that can help provide a framework about the trending direction of any given asset.

Some of the most popular pair of candlesticks patterns used by professional traders include, bullish and bearish engulfing, morning and evening star, and hammer and shooting star. By no means, the forecast presented by these technical formations is 100% accurate, but they have proven to provide significant opportunities to profit.

Level Up Your Scalping with These Candlestick Patterns 19

Bullish and Bearish Engulfing

Bullish and bearish engulfing patterns are the most widely known candlesticks patterns in trading. These technical formations forecast when upward and downward trends are about to reverse. Therefore, they indicate who is winning the raging battle between the bulls and the bears.

A bullish engulfing pattern develops when a red (purple) candlestick is succeeded by a green (blue) candlestick, which body overlaps the body of the previous candlestick. On the left side of the image below, it shows how the DGTX/USD trading pair is currently developing this type of candlestick pattern, indicating a potential breakout.

Traders with a lot of experience in the industry usually wait for the following candlestick to trade above the engulfing one to enter long positions.

Level Up Your Scalping with These Candlestick Patterns 20

On the other hand, a bearish engulfing pattern signals that prices are bound for a steep correction. The moment a red candlestick overlaps the body of a preceding green candle it suggests that the bears have overtaken the bulls. Thus, sellers will have a better chance to push prices in a downward direction.

As seen in the image above, DGTX went through a corrective period after this technical formation developed on April 10. The token saw its price take a 20% nosedive upon the completion of the bearish engulfing pattern before it bounced to up to new higher highs.

Morning and Evening Star

Morning and Evening star patterns consist of three candlesticks that describe whether the bull or the bears are taking control of the price action of any asset. These technical formations are also reversal patterns that anticipate oversold and overbought territories. When employed with other indexes, they have proven to be quite accurate.

On DGTX’s 1-day chart, a morning star pattern formed in mid-May following a downward trend. It consisted of three different candlesticks: a large red candlestick, a small-bodied candlestick or doji, and a green candlestick. This technical pattern was able to anticipate that DGTX was about to reverse, which was indeed followed by a 19% upswing.

Level Up Your Scalping with These Candlestick Patterns 21

An evening star, however, is used to detect when an uptrend is about to reverse. This bearish candlestick pattern also consists of three candles: a large green candlestick, a small-bodied candle or doji, and a red candle. As it happened in late May, the occurrence of this technical pattern led to a steep correction across most major digital assets, before prices recovered.

Inverted Hammer and Shooting Star

An inverted hammer and a shooting star pattern look very similar, but they present different scenarios. The former is a bullish candlestick pattern since it tends to occur in a downward trend. Meanwhile, the latter is used to predict that an uptrend is coming to an end.

In mid-December 2019, the DGTX/USD trading pair presented this type of candlestick pattern. It formed at the bottom of a downtrend and acted as a buy signal suggesting a high potential for a reversal to the upside. During that time, the inverted hammer was effectively able to predict an upswing of 19%.

Level Up Your Scalping with These Candlestick Patterns 22

A shooting star pattern formed in early May on DGTX’s daily chart. As seen in the image above, this candlestick pattern formed right on the top of an uptrend while the inverted hammer developed on the bottom of a downtrend. It was able to forecast that DGTX was bound for a correction.

Learning to master candlesticks could help you become a better trader, but remember, not everyone follows the same style. If you want to find out more about how to trade profitably on the DFE, watch our CEO Adam Todd giving you a quick demo. If you’re ready to start trading Bitcoin futures with zero fees, sign up here to get started right away.

July 29, 2020
Trading
Uncategorized

Level Up Your Scalping with These Candlestick Patterns

Ali Martinez
scalping

On Friday, July 31, Digitex Futures opened the doors with zero-commission cryptocurrency futures trading to the public for the very first time. Even two days before the official release, the DFE platform had reached an astounding 24-hour volume high of $2.9 billion in trading volume on Tuesday, July 28, 2020.

With this exciting new platform to trade on, there is no better time to understand how to use the platform and learn the basics of how to trade virtual asset derivative products. More importantly, having the ability to quickly recognize candlestick patterns can make trading strategies such as scalping highly profitable.

Candlestick Patterns to Level Up Your Scalping Strategy

As the virtual assets market sits on the cusp of its next bullish cycle, having a solid trading strategy is a must. Understanding when to buy and sell can make a huge difference in anyone’s portfolio.  Although trading is not necessarily easy, there are a number of easy-to-spot candlestick patterns that can help provide a framework about the trending direction of any given asset.

Some of the most popular pair of candlesticks patterns used by professional traders include, bullish and bearish engulfing, morning and evening star, and hammer and shooting star. By no means, the forecast presented by these technical formations is 100% accurate, but they have proven to provide significant opportunities to profit.

Level Up Your Scalping with These Candlestick Patterns 23

Bullish and Bearish Engulfing

Bullish and bearish engulfing patterns are the most widely known candlesticks patterns in trading. These technical formations forecast when upward and downward trends are about to reverse. Therefore, they indicate who is winning the raging battle between the bulls and the bears.

A bullish engulfing pattern develops when a red (purple) candlestick is succeeded by a green (blue) candlestick, which body overlaps the body of the previous candlestick. On the left side of the image below, it shows how the DGTX/USD trading pair is currently developing this type of candlestick pattern, indicating a potential breakout.

Traders with a lot of experience in the industry usually wait for the following candlestick to trade above the engulfing one to enter long positions.

Level Up Your Scalping with These Candlestick Patterns 24

On the other hand, a bearish engulfing pattern signals that prices are bound for a steep correction. The moment a red candlestick overlaps the body of a preceding green candle it suggests that the bears have overtaken the bulls. Thus, sellers will have a better chance to push prices in a downward direction.

As seen in the image above, DGTX went through a corrective period after this technical formation developed on April 10. The token saw its price take a 20% nosedive upon the completion of the bearish engulfing pattern before it bounced to up to new higher highs.

Morning and Evening Star

Morning and Evening star patterns consist of three candlesticks that describe whether the bull or the bears are taking control of the price action of any asset. These technical formations are also reversal patterns that anticipate oversold and overbought territories. When employed with other indexes, they have proven to be quite accurate.

On DGTX’s 1-day chart, a morning star pattern formed in mid-May following a downward trend. It consisted of three different candlesticks: a large red candlestick, a small-bodied candlestick or doji, and a green candlestick. This technical pattern was able to anticipate that DGTX was about to reverse, which was indeed followed by a 19% upswing.

Level Up Your Scalping with These Candlestick Patterns 25

An evening star, however, is used to detect when an uptrend is about to reverse. This bearish candlestick pattern also consists of three candles: a large green candlestick, a small-bodied candle or doji, and a red candle. As it happened in late May, the occurrence of this technical pattern led to a steep correction across most major digital assets, before prices recovered.

Inverted Hammer and Shooting Star

An inverted hammer and a shooting star pattern look very similar, but they present different scenarios. The former is a bullish candlestick pattern since it tends to occur in a downward trend. Meanwhile, the latter is used to predict that an uptrend is coming to an end.

In mid-December 2019, the DGTX/USD trading pair presented this type of candlestick pattern. It formed at the bottom of a downtrend and acted as a buy signal suggesting a high potential for a reversal to the upside. During that time, the inverted hammer was effectively able to predict an upswing of 19%.

Level Up Your Scalping with These Candlestick Patterns 26

A shooting star pattern formed in early May on DGTX’s daily chart. As seen in the image above, this candlestick pattern formed right on the top of an uptrend while the inverted hammer developed on the bottom of a downtrend. It was able to forecast that DGTX was bound for a correction.

Learning to master candlesticks could help you become a better trader, but remember, not everyone follows the same style. If you want to find out more about how to trade profitably on the DFE, watch our CEO Adam Todd giving you a quick demo. If you’re ready to start trading Bitcoin futures with zero fees, sign up here to get started right away.

Latest News

Cryptrader

Cryptrader Explains How to Use Conditional Orders

Trading
• Digitex Futures
July 22, 2020

Traders on the DFE mainnet have been clamoring for conditional orders, and Stop Loss in particular, ever since we launched. We’re pleased to say that this feature is now live, and in advance of the public launch on July 31. In this video, our pro mainnet user Cryptrader explains how to use conditional orders, including Stop Loss, on the DFE.

Cryptrader opens the video by explaining the role of conditional orders in a risk management strategy. If you need to step away from the trading screen, or want to leave an order open overnight, then you’ll need to know how to set a Stop Loss in case of a sudden price movement that could see you in a losing position.

On the DFE, there are four different types of conditional orders. These are Stop-Limit, Stop-Market, Take-Profit-Limit, and Take-Profit-Market.

Although each has its purpose, if you’re using Stop Loss as part of a risk management strategy, then Stop-Limit comes with the additional risk that your order will take more time to get filled. During this time, assuming you’re away from the trading screen, price volatility could mean you incur additional losses.

Although conditional ordering is now live, Cryptrader uses the testnet in this video so he can demonstrate each case of conditional ordering without risking losing any real DGTX. This explains how one of his trades here is leveraged at 100x. However, we have just increased leverage on the DFE from 10x to 25x, which mainnet users will now see when they log in.

Using Stop-Market Orders

Cryptrader walks through a straightforward example, using a Stop-Market order for a long position of one contract. He sets up the conditional order to sell the contract if the price dips below a level between the value of his order and the liquidation price.

In the next example, he demonstrates the same scenario but with a short position. In this case, he opens a short position for one contract and sets a Stop-Market buy order for one contract. This time around, the conditional price is set for a value above his order but below the liquidation price.

In each case, you can see your conditional orders in the “Delayed Actions” tab in the order section of the DFE interface.

Using Stop-Limit Orders

With Stop-Limit orders, you can specify particular conditions for the cancelation of the order, in contrast with Stop-Market orders, which are always good until canceled.

Cryptrader walks through how to use the Stop-Limit orders, again illustrating the conditional order using both a long and a short position. The key feature of Stop-Limit orders is that you can specify the value at which you want to exit the position, rather than the exit being triggered only by the spot price. This allows you to decide how much slippage you’re prepared to accept.

However, the trade-off is that if your order doesn’t get filled, the price could slip to the point of liquidation. Cryptrader uses a large short trade of 1,000 contracts to demonstrate how there needs to be enough liquidity on the ladder to fill a Stop-Limit order.

Take-Profit-Market and Take-Profit-Limit

The Take Profit orders work in the same way as Stop Loss but in reverse. So your conditional orders are set to trigger based on the spot price or your limit value but execute based on achieving a profit, rather than on limiting loss.

Cryptrader demonstrates another four orders, using Take-Profit-Market and Take-Profit-Limit on both long and short positions.

Opening Positions Using Conditional Ordering

Finally, Cryptrader demonstrates how to open a position based on a breakout level. He uses the example of opening a short position for 100 contracts, with a Stop-Market order. Here, you’ll need to check the “Allow position increase” box, which allows you to open the position when you’re starting from zero.

Using conditional orders to open a position means that you can take advantage of price movements that break through lines of support or resistance even when you’re away from the trading screen.

We’re always aiming to give users the best possible experience when trading on the DFE. Right now, the development team is working on bringing conditional ordering features to the ladder itself, meaning it will be even easier to set a Stop Loss or Take Profit. Watch this space! And remember, you can catch all Cryptrader’s live-streamed DFE trading sessions over on his YouTube channel.

July 22, 2020
Trading

Cryptrader Explains How to Use Conditional Orders

Digitex Futures
Cryptrader

Traders on the DFE mainnet have been clamoring for conditional orders, and Stop Loss in particular, ever since we launched. We’re pleased to say that this feature is now live, and in advance of the public launch on July 31. In this video, our pro mainnet user Cryptrader explains how to use conditional orders, including Stop Loss, on the DFE.

Cryptrader opens the video by explaining the role of conditional orders in a risk management strategy. If you need to step away from the trading screen, or want to leave an order open overnight, then you’ll need to know how to set a Stop Loss in case of a sudden price movement that could see you in a losing position.

On the DFE, there are four different types of conditional orders. These are Stop-Limit, Stop-Market, Take-Profit-Limit, and Take-Profit-Market.

Although each has its purpose, if you’re using Stop Loss as part of a risk management strategy, then Stop-Limit comes with the additional risk that your order will take more time to get filled. During this time, assuming you’re away from the trading screen, price volatility could mean you incur additional losses.

Although conditional ordering is now live, Cryptrader uses the testnet in this video so he can demonstrate each case of conditional ordering without risking losing any real DGTX. This explains how one of his trades here is leveraged at 100x. However, we have just increased leverage on the DFE from 10x to 25x, which mainnet users will now see when they log in.

Using Stop-Market Orders

Cryptrader walks through a straightforward example, using a Stop-Market order for a long position of one contract. He sets up the conditional order to sell the contract if the price dips below a level between the value of his order and the liquidation price.

In the next example, he demonstrates the same scenario but with a short position. In this case, he opens a short position for one contract and sets a Stop-Market buy order for one contract. This time around, the conditional price is set for a value above his order but below the liquidation price.

In each case, you can see your conditional orders in the “Delayed Actions” tab in the order section of the DFE interface.

Using Stop-Limit Orders

With Stop-Limit orders, you can specify particular conditions for the cancelation of the order, in contrast with Stop-Market orders, which are always good until canceled.

Cryptrader walks through how to use the Stop-Limit orders, again illustrating the conditional order using both a long and a short position. The key feature of Stop-Limit orders is that you can specify the value at which you want to exit the position, rather than the exit being triggered only by the spot price. This allows you to decide how much slippage you’re prepared to accept.

However, the trade-off is that if your order doesn’t get filled, the price could slip to the point of liquidation. Cryptrader uses a large short trade of 1,000 contracts to demonstrate how there needs to be enough liquidity on the ladder to fill a Stop-Limit order.

Take-Profit-Market and Take-Profit-Limit

The Take Profit orders work in the same way as Stop Loss but in reverse. So your conditional orders are set to trigger based on the spot price or your limit value but execute based on achieving a profit, rather than on limiting loss.

Cryptrader demonstrates another four orders, using Take-Profit-Market and Take-Profit-Limit on both long and short positions.

Opening Positions Using Conditional Ordering

Finally, Cryptrader demonstrates how to open a position based on a breakout level. He uses the example of opening a short position for 100 contracts, with a Stop-Market order. Here, you’ll need to check the “Allow position increase” box, which allows you to open the position when you’re starting from zero.

Using conditional orders to open a position means that you can take advantage of price movements that break through lines of support or resistance even when you’re away from the trading screen.

We’re always aiming to give users the best possible experience when trading on the DFE. Right now, the development team is working on bringing conditional ordering features to the ladder itself, meaning it will be even easier to set a Stop Loss or Take Profit. Watch this space! And remember, you can catch all Cryptrader’s live-streamed DFE trading sessions over on his YouTube channel.

Latest News

trading

Boost Your Trading Skills with These Crucial Chart Patterns

Trading
• Ali Martinez
July 14, 2020

Profitable trading involves spending some time learning the ropes. For this reason, Digitex’s business model was created around helping our users achieve their trading goals. Our team has been focused on producing educational material to allow users to take advantage of our zero-commission trading platform, creating more winning traders.

With the Digitex Futures Exchange enabling commission-free trading, there’s no better time to understand how to use the platform and learn the basics of how to trade crypto derivative products. More importantly, having the ability to quickly recognize chart patterns can make trading strategies such as scalping and swing trading highly profitable.

Crucial Chart Patterns to Boost Your Trading Skills

With the high levels of FUD (fear, uncertainty, and doubt) surrounding the cryptocurrency market, chart patterns provide a framework to filter all the nonsense. The analysis of such technical formations is crucial to determine who is winning the raging battle between bulls and bears.

As a rule of thumb, the trend of any given asset is usually interrupted by indecision periods. During these times, traders must identify whether or not a chart pattern is forming that could help forecast if the trend continues.

It is worth noting that chart patterns can take a long time to develop fully, which usually results in more significant price movements. Especially when the price action evolves around the previous trend.

These types of technical formations are known as continuation patterns, and the most common ones include triangles, channels, and pennants.

Boost Your Trading Skills with These Crucial Chart Patterns 27

Triangles

Triangles are one of the most common chart patterns employed in technical analysis due to the frequency in which they tend to develop. The price action of any given cryptocurrency can lead to the formation of ascending or descending triangles. The main difference between the two is that the former usually results in a breakout while the latter results in a breakdown.

By measuring the distance of the between the two highest points of a triangle, a potential target can be determined.

Bitcoin, for instance, generally forms this type of continuation pattern within all time frames. On the image below, one can see that on the left, a horizontal line was created along with the swing highs while a rising trendline developed along with the swing lows. This is considered an ascending triangle, which successfully predicted a potential target of nearly 10%.

Boost Your Trading Skills with These Crucial Chart Patterns 28

On the right side of the image above, however, Bitcoin developed a descending triangle. A horizontal trendline was created along with the swing lows while a descending trendline formed along with the swing highs. The distance between the highest points of the triangle anticipated a nearly 50% correction. When BTC finally broke down of this pattern in mid-November 2018, its price plummeted 47.5%.

Channels

Channels are composed of two parallel trendlines that can slope up or down. Typically, a parallel channel with a downward slope occurs in an uptrend, while a parallel channel with an upward bias shows up in a downtrend. There is a tendency to draw a parallel line equal to the channel’s distance to determine a potential target when an asset breaks out or down of this pattern.

These continuation patterns are commonly seen across the different time frames of DGTX. Recently, this utility token broke out of a descending parallel channel after trading within it for over three months. Moving past the upper boundary of the channel allowed DGTX to surge to $0.067, which is roughly the same target determined by this technical pattern.

Boost Your Trading Skills with These Crucial Chart Patterns 29

An ascending parallel channel was also spotted on DGTX’s 4-hour chart in late December 2018. Following the break of the lower boundary of this bearish formation, the price of this altcoin dropped by 20%. The downward impulse allowed it to reach the target calculated by drawing a parallel line equal to the ascending channel’s distance.

Pennants

Pennants are created by two trendlines that eventually converge. One of them goes in a downward direction while the other in an upward direction. As shown in the image below, the distance between the pennant’s highest points provides a potential target to take profits once prices eventually break out or down.

In an ascending trend, the creation of a pennant can lead to further gains. Ethereum’s price action, for instance, formed a pennant in March 2017 as the ICO mania was kicking off. Even though this pattern forecasted a 42% upswing, Ether was able to climb over 50% once it broke out of it.

Boost Your Trading Skills with These Crucial Chart Patterns 30

As ETH was reaching an exhaustion point a couple of months later, another pennant formed. This time, however, the outcome was bearish since the preceding trend was downward. As a result, the price of Ethereum plunged over 15%, which was consistent with the target given by this technical formation.

It’s Time to Practice

Now that you have learned about some of the most common continuation patterns in technical analysis, it’s time for you to practice. If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these chart patterns without the edge of commissions working against you.

If you’re still waiting for the chance to start trading bitcoin futures with zero fees, why not sign up today and get started!

July 14, 2020
Trading

Boost Your Trading Skills with These Crucial Chart Patterns

Ali Martinez
trading

Profitable trading involves spending some time learning the ropes. For this reason, Digitex’s business model was created around helping our users achieve their trading goals. Our team has been focused on producing educational material to allow users to take advantage of our zero-commission trading platform, creating more winning traders.

With the Digitex Futures Exchange enabling commission-free trading, there’s no better time to understand how to use the platform and learn the basics of how to trade crypto derivative products. More importantly, having the ability to quickly recognize chart patterns can make trading strategies such as scalping and swing trading highly profitable.

Crucial Chart Patterns to Boost Your Trading Skills

With the high levels of FUD (fear, uncertainty, and doubt) surrounding the cryptocurrency market, chart patterns provide a framework to filter all the nonsense. The analysis of such technical formations is crucial to determine who is winning the raging battle between bulls and bears.

As a rule of thumb, the trend of any given asset is usually interrupted by indecision periods. During these times, traders must identify whether or not a chart pattern is forming that could help forecast if the trend continues.

It is worth noting that chart patterns can take a long time to develop fully, which usually results in more significant price movements. Especially when the price action evolves around the previous trend.

These types of technical formations are known as continuation patterns, and the most common ones include triangles, channels, and pennants.

Boost Your Trading Skills with These Crucial Chart Patterns 31

Triangles

Triangles are one of the most common chart patterns employed in technical analysis due to the frequency in which they tend to develop. The price action of any given cryptocurrency can lead to the formation of ascending or descending triangles. The main difference between the two is that the former usually results in a breakout while the latter results in a breakdown.

By measuring the distance of the between the two highest points of a triangle, a potential target can be determined.

Bitcoin, for instance, generally forms this type of continuation pattern within all time frames. On the image below, one can see that on the left, a horizontal line was created along with the swing highs while a rising trendline developed along with the swing lows. This is considered an ascending triangle, which successfully predicted a potential target of nearly 10%.

Boost Your Trading Skills with These Crucial Chart Patterns 32

On the right side of the image above, however, Bitcoin developed a descending triangle. A horizontal trendline was created along with the swing lows while a descending trendline formed along with the swing highs. The distance between the highest points of the triangle anticipated a nearly 50% correction. When BTC finally broke down of this pattern in mid-November 2018, its price plummeted 47.5%.

Channels

Channels are composed of two parallel trendlines that can slope up or down. Typically, a parallel channel with a downward slope occurs in an uptrend, while a parallel channel with an upward bias shows up in a downtrend. There is a tendency to draw a parallel line equal to the channel’s distance to determine a potential target when an asset breaks out or down of this pattern.

These continuation patterns are commonly seen across the different time frames of DGTX. Recently, this utility token broke out of a descending parallel channel after trading within it for over three months. Moving past the upper boundary of the channel allowed DGTX to surge to $0.067, which is roughly the same target determined by this technical pattern.

Boost Your Trading Skills with These Crucial Chart Patterns 33

An ascending parallel channel was also spotted on DGTX’s 4-hour chart in late December 2018. Following the break of the lower boundary of this bearish formation, the price of this altcoin dropped by 20%. The downward impulse allowed it to reach the target calculated by drawing a parallel line equal to the ascending channel’s distance.

Pennants

Pennants are created by two trendlines that eventually converge. One of them goes in a downward direction while the other in an upward direction. As shown in the image below, the distance between the pennant’s highest points provides a potential target to take profits once prices eventually break out or down.

In an ascending trend, the creation of a pennant can lead to further gains. Ethereum’s price action, for instance, formed a pennant in March 2017 as the ICO mania was kicking off. Even though this pattern forecasted a 42% upswing, Ether was able to climb over 50% once it broke out of it.

Boost Your Trading Skills with These Crucial Chart Patterns 34

As ETH was reaching an exhaustion point a couple of months later, another pennant formed. This time, however, the outcome was bearish since the preceding trend was downward. As a result, the price of Ethereum plunged over 15%, which was consistent with the target given by this technical formation.

It’s Time to Practice

Now that you have learned about some of the most common continuation patterns in technical analysis, it’s time for you to practice. If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these chart patterns without the edge of commissions working against you.

If you’re still waiting for the chance to start trading bitcoin futures with zero fees, why not sign up today and get started!

Latest News

bitcoin

A Technical Index To Help You Time Bitcoin’s Price Action

Trading
• Ali Martinez
June 23, 2020

Thousands of technical indicators are used by traders all over the world to try to forecast the direction of Bitcoin’s trend and profit from it. While most of these indexes are easily accessible to the public, there is one, in particular, that is widely used by institutional investors. Here, we demonstrate how retail traders can use it to their advantage. 

The Tom Demark (TD) Sequential indicator is often described as one of the most efficient gauges since it can be easily adapted to any trading strategy. This index serves the purpose of identifying local tops and bottoms as it signals when an uptrend or a downtrend is about to reach an exhaustion point and reverse.     

Over the years, the TD setup has proven to be essential in determining Bitcoin’s price action. In 2020, for instance, it was able to predict one of the most significant corrections that the flagship cryptocurrency has seen thus far. 

In mid-February when Bitcoin surged to a yearly high of $10,500, the TD Sequential presented a sell signal in the form of a green nine candlestick. Following the bearish formation, BTC went through a massive bearish impulse that saw its price plummet by nearly 63%.

Then, it was also able to accurately estimate that BTC was reaching an oversold territory on March 16. After providing a buy signal in the form of a red nine candlestick that transitioned into a green one, the price of Bitcoin recovered over 56% of the losses incurred.  

Bitcoin US dollar price chart
TD Sequential Times BTC’s Price Action During March’s Market Meltdown. (Source: TradingView)

The high level of precision that this technical index has to determine where Bitcoin is headed next, makes it ideal for any trader to consider it before entering any long or short positions. For this reason, we will explore some of the most simple and effective rules of the TD Sequential to help you time the price action of the bellwether cryptocurrency.  

When to Buy and When to Sell?

The TD setup usually presents different buy and sell signals that are correlated with Bitcoin’s price action. These vary between aggressive, combo, and sequential 13 candlesticks as well as others. But for now, we will direct our focus towards the most significant bullish and bearish formation that will boost your trading strategy. 

The most important buy and sell signals start with the completion of a nine candlesticks count. When a nine candlesticks countdown is completed, it is at that point that the TD Sequential indicates that a pullback or trend reversal is about to take place. This can happen in an upward or downward direction. 

When it occurs to the upside, the bearish formation develops in the form of a green nine candlestick that forecasts a one to four candlesticks correction or the beginning of a new downward countdown. Conversely, when the nine candlesticks count happens in a downward trend, the buy signal develops in the form of a red nine candlestick estimating that a bullish impulse is underway. 

It is worth noting that green nine and red nine candlesticks can transition into red or green one candlesticks, respectively, depending on Bitcoin’s price action. But this does not invalidate the forecast of each signal. 

A look at BTC’s 1-day chart shows how the formation of green and red nine candlesticks has provided several opportunities to profit since mid-December. Traders who rigorously followed these signals since then would have made at least 180% in profits. Meanwhile, those who bought Bitcoin around December 16, 2019, would have 47% returns.  

Bitcoin US dollar price chart
TD Setup Provides Sizable Opportunites to Profit. (Source: TradingView)

Another important rule to have in mind when using the TD Sequential indicator is that a green two candlestick trading above a preceding green one candle can have the potential to invalidate a sell signal. The same goes when a red nine candlestick develops and there is a red two candlestick trading below the preceding red one candle. 

If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these kinds of indicators in your trading strategy without the edge of commissions working against you.

If you’re still waiting for the chance to get onto the DFE mainnet, then why not test out the TD Sequential indicator on the Digitex testnet platform? It’s free to sign up and doing so means you’re automatically queued for a mainnet account. We’re onboarding more and more traders every week, turning the DFE into one of the most liquid exchanges on the market.

June 23, 2020
Trading

A Technical Index To Help You Time Bitcoin’s Price Action

Ali Martinez
bitcoin

Thousands of technical indicators are used by traders all over the world to try to forecast the direction of Bitcoin’s trend and profit from it. While most of these indexes are easily accessible to the public, there is one, in particular, that is widely used by institutional investors. Here, we demonstrate how retail traders can use it to their advantage. 

The Tom Demark (TD) Sequential indicator is often described as one of the most efficient gauges since it can be easily adapted to any trading strategy. This index serves the purpose of identifying local tops and bottoms as it signals when an uptrend or a downtrend is about to reach an exhaustion point and reverse.     

Over the years, the TD setup has proven to be essential in determining Bitcoin’s price action. In 2020, for instance, it was able to predict one of the most significant corrections that the flagship cryptocurrency has seen thus far. 

In mid-February when Bitcoin surged to a yearly high of $10,500, the TD Sequential presented a sell signal in the form of a green nine candlestick. Following the bearish formation, BTC went through a massive bearish impulse that saw its price plummet by nearly 63%.

Then, it was also able to accurately estimate that BTC was reaching an oversold territory on March 16. After providing a buy signal in the form of a red nine candlestick that transitioned into a green one, the price of Bitcoin recovered over 56% of the losses incurred.  

Bitcoin US dollar price chart
TD Sequential Times BTC’s Price Action During March’s Market Meltdown. (Source: TradingView)

The high level of precision that this technical index has to determine where Bitcoin is headed next, makes it ideal for any trader to consider it before entering any long or short positions. For this reason, we will explore some of the most simple and effective rules of the TD Sequential to help you time the price action of the bellwether cryptocurrency.  

When to Buy and When to Sell?

The TD setup usually presents different buy and sell signals that are correlated with Bitcoin’s price action. These vary between aggressive, combo, and sequential 13 candlesticks as well as others. But for now, we will direct our focus towards the most significant bullish and bearish formation that will boost your trading strategy. 

The most important buy and sell signals start with the completion of a nine candlesticks count. When a nine candlesticks countdown is completed, it is at that point that the TD Sequential indicates that a pullback or trend reversal is about to take place. This can happen in an upward or downward direction. 

When it occurs to the upside, the bearish formation develops in the form of a green nine candlestick that forecasts a one to four candlesticks correction or the beginning of a new downward countdown. Conversely, when the nine candlesticks count happens in a downward trend, the buy signal develops in the form of a red nine candlestick estimating that a bullish impulse is underway. 

It is worth noting that green nine and red nine candlesticks can transition into red or green one candlesticks, respectively, depending on Bitcoin’s price action. But this does not invalidate the forecast of each signal. 

A look at BTC’s 1-day chart shows how the formation of green and red nine candlesticks has provided several opportunities to profit since mid-December. Traders who rigorously followed these signals since then would have made at least 180% in profits. Meanwhile, those who bought Bitcoin around December 16, 2019, would have 47% returns.  

Bitcoin US dollar price chart
TD Setup Provides Sizable Opportunites to Profit. (Source: TradingView)

Another important rule to have in mind when using the TD Sequential indicator is that a green two candlestick trading above a preceding green one candle can have the potential to invalidate a sell signal. The same goes when a red nine candlestick develops and there is a red two candlestick trading below the preceding red one candle. 

If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these kinds of indicators in your trading strategy without the edge of commissions working against you.

If you’re still waiting for the chance to get onto the DFE mainnet, then why not test out the TD Sequential indicator on the Digitex testnet platform? It’s free to sign up and doing so means you’re automatically queued for a mainnet account. We’re onboarding more and more traders every week, turning the DFE into one of the most liquid exchanges on the market.

Latest News