Here are two of the best crypto trading signals using moving average crossovers to swing trade and trend trade the ^BTCUSD and ^ETHUSD pair. These are examples of trading signals for capturing moves to the upside and going to cash if price starts moving down. 

5 day / 10 day ema crossover: Laser Hands signal. 5 day / 10 day ema crossunder: Paper Hands signal. 

5 day / 20 day ema crossover: Flying Eagle signal. 5 day / 20 day ema crossunder: Wounded Duck signal. 

The above chart shows the Steve Burns Moving Average Ribbon and all of the following crossover signals. 

Below is a backtest based on buying the ^BTCUSD and ^ETHUSD when the 5 day EMA crosses and closes over the 10 day EMA and then selling when the 5 day EMA closes back under the 10 day EMA:

^BTCUSD chart and 5/10 day ema crossover entry and crossunder exit backtest data:

Crypto Trading Signals

Crypto Trading Signals

^ETHUSD chart and 5/10 day ema crossover entry and crossunder exit backtest data:

Crypto Trading Signals

Crypto Trading Signals

Below is a backtest based on buying the ^BTCUSD and ^ETHUSD when the 5 day EMA crosses and closes over the 20 day EMA and then selling when the 5 day EMA closes back under the 20 day EMA:

^BTCUSD chart and 5/20 day ema crossover entry and crossunder exit backtest data:

Crypto Trading Signals

Crypto Trading Signals

^ETHUSD chart and 5/20 day ema crossover entry and crossunder exit backtest data:

Crypto Trading Signals

Crypto Trading Signals

(All charts and backtesting data courtesy of TrendSpider.com. Price data used from the Kraken platform).

These backtested signals show how Bitcoin can be a great asset for trend trading and used to diversify your trading system.  The primary edge in the above signals is that it keeps a trader long to capture the upside and then takes the trader back to cash derivatives/stable coins during crypto downtrends in price and avoids the bulk of crashes and downtrends. These signals can also give new traders timing parameters on when to first get into a cryptocurrency and avoid buying near a top in most cases. 

This post is for informational purposes and is not investment advice.

 

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.