How you can make money with Cryptoland Scout
You can make money with Cryptoland Scout but first, you have to know what Cryptoland Scout actually is.
Cryptoland Scout is the trading tool for Binance exchange that belongs to the class of crypto market scanners/screeners that finds hidden structures in market chaos and allows you to simultaneously use price action, ABCD patterns, Fibonacci retracement, relative strength index, all four types of RSI divergences, Heikin Ashi and Smoothed Heikin Ashi candles. It collects data in real-time and sends alerts for all trading opportunities. Powerful filters allow extracting meaningful signals from data noise. Cryptoland Scout also works on all time frames and supports more than 330 cryptocurrency spot trading pairs and more than 130 pairs on futeres market. In one word – all you need to find winning trade setups.
Common to the vast majority of trading strategies is to always look for a point that represents some significant change in trend. Cryptoland Scout finds all the points where the changes took place. When you have these points, then with the help of the results filtering tool, you can narrow down a large number of found points to just a few, which are then easy to analyze with the help of already-known methods of technical analysis.
What are the best features of Cryptoland Scout?
- Works with all selected currency pairs at the same time.
- Works on all selected time frames from one minute to one week.
- You can define whether you want to see only a rise in price, just a fall in price, or both.
- You can define what percentage of the price change you are looking for each time frame separately.
- It also finds the most commonly formed pattern in trading – ABCD.
- It gives you an instant insight into the size of the pullback.
To simplify, we can say that the Scout algorithm finds coins that had a larger change in price than the given one in a certain period of time and where the chart structure was recognized as suitable for trading.
The advantage of Cryptoland Scout over other programs of this type is that it finds all the good opportunities. The biggest help Scout can give you is to scan the entire crypto market at once and give you potentially good trades for all currency pairs at all time intervals. Cryptoland Scout will constantly launch new trading opportunities as it tracks price movements in real-time and results arrive with minimal delay.
And now a little more detail – what is the result of the work of Cryptoland Scout?
After analyzing all selected currency pairs, Cryptoland Scout will provide a list of points in time that has the potential to grow into good trades in the near future.
These obtained points are the ends of the formed structures that Cryptoland Scout recognizes as “l pattern” and “ABCD pattern” which is marked with “h” in the program.
Cryptoland Scout uses two basic types of scanning. The first is Price Action where Scout notifies you of all price changes at all time intervals that interest you. This defines an impulse that can consist of one or more candles in each time range.
Another way of scanning is that in addition to the “ordinary” pulse, Scout also hunts for the so-called “ABCD pattern”, which is the beginning of many well-known patterns for which there is already an elaborate way of trading. In fact, when it catches the “ABCD pattern” Scout puts you in a position to think about trading from that point.
From this, we conclude that Cryptoland Scout saves us a huge amount of time because instead of us it “passes” through all currency pairs and through all time ranges and finds all the points after which there is potential for good trading.
How is the ABCD pattern recognized?
The ABCD pattern is a continuous string consisting of three rows of candles. First, there is a green string, then red candles, and finally green candles again. Such an ABCD pattern is called a bullish ABCD pattern and when it happens we see price increases.
There is also an inverse ABCD pattern when the colors are inverted. First, it goes through red, then green, and finally red candles again. The ABCD pattern code when a price drop occurs is called the bearish ABCD pattern.
The first row of candles is called segment A, the second segment B and the third is segment C. The power of the pattern is reflected in the number of candles. The more candles in each segment, the stronger the ABCD pattern.
In the B segment, the price is moving in the opposite direction from the current trend. This movement in the opposite direction is called pullback.
Fibonacci Pulback filter
Cryptoland Scout has a fantastic option that measures how much pullback there is as soon as the ABCD template appears. That’s why all traders who use “Fibonacci Retracement Levels” will adore Cryptoland Scout. It is very useful that you can filter the results so that if you are looking for the popular “golden pocket” you can simply set only the results to appear where the pullback is in the range of 0.5 to 0.618. I’ll talk more about filters later.
There are several forms of what the ABCD pattern may look like. If, for example, the endpoints A and C of the segment are at the same height, then it is a double bottom pattern or a double top pattern. If the C segment is longer than the A segment, then we can consider whether a known pattern called the Eliot wave may be formed.
The most important difference between the bearish ABCD and the bullish ABCD pattern is that the bullish ABCD pattern can also be traded on the spot market and the bearish ABCD pattern can only be traded through the margin as a SHORT position.
Thus, the essence of the ABCD pattern is that it represents the beginning of the formation of one of the already-known patterns. Timely recognition of which pattern the found ABCD pattern will turn into leads to a great position for a good trade.
Is it possible to adjust the work of Cryptoland Scout to give results that suit my strategy?
Yes, it’s possible. This is done in the filter section. There you can define 3 parameters on the basis of which the initial filtering of results is performed.
FILTERS
The most powerful tool of this program is located in the right vertical panel. Filters for analyzing currency pairs are made here. The filter is defined by 3 items:
- price change in percent for a certain time frame
- maximum pullback
- minimum pullback
Why does this really matter?
The price change is a tool that is in fact a filter for all price changes but within a certain time frame. So we can say that we are interested in a change of 1% in a time frame of 1 minute, 2% in a time frame of 3 minutes, 3% in 5 minutes, and so on until one week. If the change in the time frame of one minute is 1% or more then that change will be displayed in the middle panel of the scoreboard. If the change is less than 1% over a one-minute time range, this result will not be displayed.
The filters that determine the maximum and minimum pullback are a real treasure of Cryptoland Scout. Namely, after the change in the price that we have already defined in the previous step, we will also define how interesting the pullback is. Let’s say that when using some of our strategies, we want to target the area from fib level 50% to fib level 61.8%. Then in the value for the maximum pullback, we write a value that is close but higher than 0.618, let’s say 0.7, and for the minimum value we write a value that is close but less than 0.5, let say 0.4. Then Scout in the results table will throw out only pullback results that have values between 40% to 70% of the value we got during the initial price action change.
Custom filters
It should be noted that each filter is recorded and named and then a different filter can be used for different currency pairs. If we want to say that the first, third, and fifth currency pairs work with a filter, then we select those three currency pairs and assign them the desired filter in the lower-left corner of the left panel and confirm the selection by clicking the apply button. Then we can assign another filter to other currency pairs.
This is especially practical if we monitor large coins at the same time, such as Bitcoin and Ethereum, and some smaller coins that have a much smaller volume. Then it is possible to make Bitcoin and Ethereum have a filter that suits them and to those smaller ones, we can assign a filter with much higher values to change the price. This reduces the number of results and then we do not waste time on analysis.
How to use Cryptoland Scout? What do we need to do then?
The results given by CLS are points of interest, ie currency pairs that will be good for trading in the very near future. Depending on which strategy the trader has chosen, it remains for him to assess whether the obtained point is worth entering the trade. To make our task easier, CLS has a number of very simple filters and sorters that effectively reduce the number of possible trades obtained to only a few extremely favorable opportunities.
There are several settings in Cryptoland Scout. With these settings, you will be able to very precisely define what kind of trading opportunity you are looking for. Here are the settings available to you:
- Selection of time ranges for which the analysis is performed
- Filter for Currency pairs
- A filter to display the time ranges in which the price change occurred
- Selection filter l or ABCD pattern
- Filter for falling or rising prices
- ABCD pattern strength filter
- RSI filter
- The filter that defines the price change on which the result will be analyzed, is defined for each time range individually
- Filter for maximum and minimum pullback prices when creating ABCD patterns
So, the results given by Cryptoland Scout are points of interest, in other words, currency pairs that will be good for trading in the very near future. After the points are found, the trader is left to monitor them and enter the trade when all the necessary conditions are met, and when we see that the confirmations have taken place.
All this sounds very nice in theory, but how is it in practice?
To be successful in the long run as a day trader you need to have a strategy. This strategy is a series of rules that you follow. The rules are not written in stone and can change over time, but do not randomly press the sell and buy buttons, because that is certainly not a strategy that brings success.
The key to success is to define which strategy you will use and then set up Cryptoland Scout so that it only throws out points that are important to you and tailored to your strategy.
How to use Cryptoland Scout in your strategy
The trader who hunts double bottom and double top templates will look at the column showing the price change and if the two numbers are very close there it means that an ABCD pattern is formed which is also a double top (or bottom) and then trades it as he prepared the strategy for that template.
A trader who relies on the Fibonacci retracement level trading strategy needs to define which pullback he wants to see in the results and does so in the filters. Then it waits for the ABCD pattern to appear and when there is one candle in the C segment it means the pullback is over. The trader then proceeds to analyze that currency pair within that time frame and act in accordance with his strategy.
It is similar to traders who use Eliot waves. When the ABCD pattern appears, the trader should look to see if segments A – B – C correspond to the Eliot waves 1 – 2 – 3 and wait for point 4 to appear, and then proceed according to the prepared strategy.
In any case, Cryptoland Scout is a huge help to every crypto trader because it works in the background all the time and delivers results for all selected currency pairs in all selected time frames.
In the end, the most important question remains – Do I need Cryptoland Scout at all?
This question is very easy to answer. If you do not trade cryptocurrencies then you do not need this tool. In all other cases, whether you are an experienced professional with many years of experience or a novice trader just looking for your winning strategy, Cryptoland Scout is a necessary weapon in the fight against the dynamic cryptocurrency market.