This article focuses on how Mizar’s official trader, MegaBotSignals, implements technical indicators such as Ichimoku, MACD, and RSI in crypto via trading bots to ensure profitable trades. First, let’s define the technical terms.
Ichimoku is a technical indicator that plots several averages on a chart to offer information about an asset class’ support and resistance levels, momentum, and trend direction.
Support is a price zone on the chart that shows buyers’ willingness to buy. At this level, demand overwhelms supply, causing the price of a coin to rise. Resistance is the opposite of support: the point where a bullish rally halts due to excess supply.
Support and resistance graph. Recall that Resistance occurs when the price cannot break above a certain level for multiple periods; the opposite is true for Support.
The MACD indicator is a tool for identifying a new direction, bullish or bearish, predicting the next price movement based on the relationship between two moving averages. It also measures the rate at which crypto prices change, otherwise called trend momentum.
A MACD Graph of the BTC/USDT pair. The graph shows three highlights denoted by the different colored arrows above: imminent trend, uptrend, and trend reversal.
The relative strength index (RSI) indicator is a momentum indicator that measures the speed and magnitude of a token's recent price changes to evaluate whether the token is overvalued or undervalued.
An RSI Graph of the BTC/USDT pair. The red horizontal lines show the 50 mark on the RSI chart. The momentum favors an uptrend whenever the RSI goes above the red line and vice versa.
Mizar’s official trader, MegaBotSignals, predominantly uses the above-defined technical indicators to train his trading bots alongside community sentiments obtainable from TradingView. TradingView is one of the most powerful charting systems traders, investors, instructors, and market enthusiasts use to exchange and discuss market ideas.
Overall, the technical indications above proffer trustworthy information about a crypto token's price. Traders of crypto futures use the report generated by the technical indicators for market signals.
In spot markets, traders buy and sell cryptocurrencies for immediate delivery or instantaneous ownership. On the other hand, futures traders buy and sell contracts representing a specific asset’s value instead of the asset itself.
Furthermore, the spot markets provide a wide range of digital assets for traders to buy and hold, while futures markets allow traders to profit from minor price fluctuations.
Also, futures markets have a tool called leverage, which is the ability to magnify one's capital for an enormous potential return at no extra cost. Futures trading is a popular choice among experienced traders because it affords them the unique opportunity to earn from either direction of the market.
Mizar’s MegaBotSignals leverages primarily on futures contracts as it offers crypto traders the chance to earn while the prices of cryptocurrencies continuously fall. In contrast, spot traders only profit when crypto prices appreciate.
Robin, the founder of MegaBotSignals, is a veteran data engineer from the Netherlands who ventured into crypto trading when he took notice of the meteoric rise of the ecosystem. After holding and gambling a few coins, Robin got into advanced trading techniques with RSI, MACD, Ichimoku, and many more.
His top marketplace strategies are applicable in both spot and futures contracts.
This strategy considers Ichimoku, MACD, RSI, volume, and risks in crypto bots merging to create a one-of-a-kind mid-risk, long-term plan, usually based on 4 to 6 achievable targets. It activates a trailing take profit order and strives for higher grounds as the price moves.
MegaBotSignals uses TradingView for making and executing scripts. Recall that TradingView is a platform that allows traders and investors to customize patterns, lines, and shapes that millions of traders use daily to analyze financial assets. With TradingView, a trader can deduce the price action of a coin by plotting against various technical indicators, as seen in all the graphs above.
Because crypto futures contracts are fewer, Robin extends to spot trading with Megabot Trader 3. This spot strategy has different dollar-cost averaging (DCA) crypto settings, including entry and target. Notably, DCA implies dividing significant investments into smaller chunks to be invested in target cryptocurrencies at various intervals.
The Megabot strategies are for people willing to take on mild risks. Given that gains far outweigh the losses, traders should be patient with the rare occurrence of negative trade and avoid closing prematurely.
Importantly, Robin does the necessary backtesting for all the technical analyses before feeding them into the DCA bot signal to ensure each transaction turns out well.
Traders should consider the number of positions to open and the availability of USDT in their accounts. The ideal number of trades to ensure that most positions close in profit is 20 to 25, although that depends on the crypto exchange.
Additionally, traders should always keep USDT in their trading account linked to Mizar. And when a trader simultaneously enters Short and Long futures contracts for diversification purposes, using around 20 for each service is the ideal strategy.
MegabotSignals is a reliable partner in crypto copy trading, given the multiple tools he uses to source data about the crypto market. His favorite feature on Mizar that significantly improved his trading is the Dollar cost averaging crypto bots. Megabot users no longer need to worry about the complex process of connecting DCA trading bots as everything is already in place on Mizar.