Blockchain and Cryptocurrency Advanced - Practical Demonstration Using the CMF Indicator

To trade with the crossover signal using the CMF indicator, I will be focusing on MATIC/USDT and BNB trading pairs.

Buy signal – MATIC/USDT and BNB/USDT

Using the +/- 0.1 crossover strategy, when the price is rising and the CMF oscillator line moves from below the negative 0.1 value and crosses above the positive 0.1 value, it is good buy signal as there is a strong possibility that the price would continue in the upward direction. For the take profit and stoploss, I will be using the 2:1 risk/reward ratio.

For MATIC/USDT, once the criteria was met, I placed a buy trade using a risk/reward ratio of 2:1. For the buy trade, my entry price was 1.095, using the risk/reward ratio of 2:1, I set my take profit level at 1.294 and stoploss at 0.994.

For BNB/USDT, once the criteria was met, I placed a buy trade using a risk/reward ratio of 2:1. For the buy trade, my entry price was 457.7, using the risk/reward ratio of 2:1, I set my take profit level at 497.9 and stoploss at 437.3.

Sell signal – MATIC/USDT and BNB/USDT

Using the +/- 0.1 crossover strategy, when the price is falling and the CMF oscillator line moves from above the positive 0.1 value and crosses below the positive 0.1 value, it is good sell signal as there is a strong possibility that the price would continue in the downward direction.

For MATIC/USDT, once the sell signal criteria was met, I placed a sell trade using a risk/reward ratio of 2:1. For the sell trade, my entry price was 0.972, using the risk/reward ratio of 2:1, I set my take profit level at 0.770 and stoploss at 1.072.

For BNB/USDT, once the sell signal criteria was met, I placed a sell trade using a risk/reward ratio of 2:1. For the sell trade, my entry price was 304.8, using the risk/reward ratio of 2:1, I set my take profit level at 260.1 and stoploss at 327.7.