Cointelegraph Markets Pro gives members access to multiple strategies for finding weekly cryptocurrency winners.

This article shows how using two overlooked indicators that, based on historical data, were able to alert traders to potentially massive price increases. These indicators can also be indispensable tools for asset discovery.

When these indices are abnormally high, they warrant a closer look at the characteristic origins to investigate the reasons behind the abnormal volume dynamics.

Before diving into the topic, it’s important to understand this point: Cointelegraph Markets Pro consists of multiple AI-based real-time indicators that provide members with multiple opportunities to get involved in specific assets before – or completely – their prices take off.

These indicators can be used individually or in combination to make informed trading decisions. Because of this, each week members can look forward to finding winning alerts.

The trading strategy discussed below is based on these two metrics that are often neglected:

Unusual Twitter volume indicator

Unusual volume indicator
Here are eight simple steps to follow for this trading strategy:

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Step 1: Go to the scanner and sort by the tweets’ positive sentiment.

Step 2: Find assets with a positive tweet sentiment of 60% or higher.

Make sure to customize the scanner view first, so that the positive tweet sentiment can be seen. Then click to add the Tweet’s positive sentiment column to the view:

By the way, positive tweet sentiment is the percentage of positive tweets about cryptocurrency over the past 24 hours. The higher the better, but the goal is at least a 40% – 60% increase.

Step 3: Find assets with a minimum of 200-400 tweets over the last 24 hours.

Ignore all high sentiment tokens with very few tweets as these assets are likely to give a false positive. The more tweets, the more likely something positive will happen with the price of the asset.

Step 4: Find assets with tweet volume 50% or more above average.

Tweet vs Avg measures how much tweet volume an asset has today against its 30-day moving average, so a value of 50% means that an asset’s tweet volume is 50% higher today than it is in a typical day.

This indicates an unusually large increase in the volume of tweets. This increase tells us that something is going on with this asset, prompting members to a possible breakout of its price.

To check for these signals, alerts should be checked by following these steps:

Step 5: Look for divergence with the price (flat or bearish movements in the chart).

Let’s look at an example with Gitcoin (GTC):

Morale of positive tweets above 60%? check.

At least 200-400 tweets in the last 24 hours? check.

Tweet volume at least 50% above average in the last 24 hours? check.

Now, let’s see where the price of the asset is heading. It’s best if it’s flat, squiggly sideways, or slightly dipped.

Markets Pro 7-day chart for Gitcoin (GTC) Jan 27, 2023
Step 6: Make sure there is enough trading volume!

Gitcoin is a digital currency with a small cap, so it can be a bit difficult to find liquid exchanges to trade this asset. With small digital currencies and other illiquid assets, trading volume is volatile and inconsistent – so be aware of the availability of trading pairs.

A minimum trading volume range of $200,000 to $400,000 depending on the pairs available on the specific exchange is recommended for optimal liquidity, but for smaller altcoins like GTC, the trading volume will be much lower.

Step 7: See what the Twitter post is about.

Take to Twitter and find out what’s going on with the asset! Maybe there’s an upgrade, maybe a protocol change, or maybe the company behind the original has ended a fundraising process.

Read the topics. Find out what’s going on.

Whatever happens, check without guesswork. It is part of the due diligence process before taking the final step. This information is necessary to decide whether to make the trade, wait and watch, or pass.

Step 8: Set up a Take Profit Limit order at a comfortable rate of 5% to 10%.

After – and after – checking your alerts using the above steps, don’t forget to set up the trade to take some profits. To get around the running inflation rate, a handy number to use is 10%, but it’s up to each member to decide. By placing a take profit limit order, one can secure a successful return on every winning trade.

By following these 8 simple steps, Markets Pro members can find multiple weekly cryptocurrency winners based on unusual twitter volume and unusual trading volume indicators.

This is just one of the many powerful trading strategies that members can take advantage of by customizing their alerts through the Markets Pro platform.

Source: CoinTelegraph