There are several methods traders use to initiate buy and sell signals.
They are divided into pre- and post-breakout/breakdown techniques.
While some traders use momentum indicators to identify moves before they happen, others wait for confirmation before initiating a trade. Both methods have their drawbacks and advantages.
One other trading system that has recently become more popular is the use of trading bots. These are bots programmed with a certain code that identifies a defined set of indicators and/or price movements in order to pinpoint a profitable trade.
Crypto trader @cryptogainz1 identified a potential buy signal created from his bot for the price of Bitcoin.
The buy signal was triggered on October 9 at a price of $8171.5.
https://twitter.com/GainzyBot/status/1181842383052398592
However, the bot did not specify a target for this possible upward move.
Looking at the chart above, we can see that it is likely that the trade will remain open until the bot issues a sell signal.
The chart also shows previous trades, from which we can see that this is likely a scalp (short-term trade) with the goal of gaining a few percentage points of profits.
Judging by its past performance, it is possible that the bot will issue a sell signal today or tomorrow.
What Triggered The Buy Signal?
Judging by the price of the buy signal and the time the tweet was sent, the buy signal was triggered at the 15-minute candle outlined below.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of Shutterstock, TradingView, Twitter.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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