Strategies of trafficking price cryptomena cryptocurrency
As the world of cryptocurrencies continues to grow and develop, the same applies to business strategies employed by merchants. Thanks to the growing popularity of cryptocurrency, such as bitcoins, ethereum and others, demand for effective prices trading strategies has been shot. In this article, we will review some popular prices negotiations strategies that can help traders make informed decisions in volatile crypto markets.
Understanding the price action
Before diving into strategies, it is essential to understand what the price action means in the context of a cryptocurrency negotiation. The price action concerns the visual representation of the market data in the chart, including the movements of prices, UPS and minors and other indicators -indicators. Merchants who focus on pricing analysis are looking for standards and trends that indicate possible purchase or sales opportunities.
5 Strategies of trading price cryptocurrency
- Treatment according to strategies
The following trend is one of the most popular strategies of negotiations on prices used in crypto markets. It involves identifying the trend of analyzing prices over time and then applying the purchase or sale signal when the market breaks above/below this trend line.
- Fibonacci retraction levels can be useful to identify a possible level of support and resistance.
- Ichimoku Cloud, a technical indicator developed by Japanese merchants, provides valuable information on price standards.
- Mobile averages (MA) can help soften prices fluctuations and identify the reversal of trends.
Example: The trader identifies that the bitcoin market is in a low trend. When the price breaks above the MA100 line (sliding average of 100 periods), the trader buys BTC to $ 6,000. If the price drops below the same line, the merchant sells BTC for $ 5,800.
- Follow business strategies
The scope negotiations focus on identifying the areas where prices make up intervals or channels. These gamma traders are looking for shopping and sales brands when prices leave these channels.
- Bollinger Bands (BB) can help identify excessive terms of sale/re -procedure.
- The SAR (Stop and Revers) parabolic system provides an easy way to negotiate with the moment indicators.
- The Kaitai Cloud system helps traders to identify the areas where prices were standards.
Example: The trader identifies the bitcoin market, which will be an interval of $ 6,200 to $ 7,000. When the price leaves this channel, the merchant buys BTC for $ 6,500. If the price drops below the lower band, the merchant sells BTC for $ 5,800.
- Moment negotiation strategies
The torque strategies focus on identifying the rate of changes in cryptomenal prices. These merchants are looking for signs of purchasing and sales when prices accelerate or slow down quickly.
- RSI (relative strength index) can help identify excessive/superdimensional conditions.
- Stochastic oscillator provides a method of evaluating the level of momentum.
- The average Crossover mobile diameter strategy includes determining the cross points between the MA100 and MA50 lines.
Example: The trader identifies that the Ethereum market shows a strong impulse. When the price accelerates above the MA100 line, the merchant buys ETH for $ 2,500. If the price slows the same line, the merchant sells ETH for $ 2,400.
- Strategies of support and resistance trading
Strategies of negotiations on promotion and negotiation negotiations focus on identifying areas in which prices tend to jump or retreat after leaving the channel or trend extent.
- The level of support and resistance can be identified using the Kaitai Ichimoku Cloud system.
- Fibonacci retraction levels can help identify possible support points and resistance.
- The average Crossover mobile diameter strategy includes determining the cross points between the MA100 and MA50 lines.
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