Cryptocation Price Action Trading Trading Strategies for Cryptostoces
While the cryptocurrency world continues to grow and evolve, trading strategies are used by traders. With the growing popularity of cryptocurrencies such as Bitcoin, Ethereum and others, the demand for effective price trading strategies has skyrocketed. In this article, we will explore certain popular price action trading strategies that can help traders make informed decisions in the volatile world of cryptocurrency markets.
Understand price action
Before diving into strategies, it is essential to understand what prices mean in the context of cryptocurrency trading. Price action refers to the visual representation of market data on a graph, including price movements, summits and stockings and other key indicators. Traders who focus on analyzing pricing prices are looking for models and trends that indicate potential purchase or sale opportunities.
5 Crypto-money price trading strategies
- Trend next outlet
The following trend is one of the most popular price action trading strategies used in the cryptocurrency markets. It is a question of identifying a trend by analyzing the movements of prices over time, then by applying a purchase or sale signal when the market breaks above this trend line.
- Fibonacci retraction levels can be useful for identifying potential support and resistance levels.
- The Ichimoku cloud, a technical indicator developed by Japanese traders, provides valuable information on price action models.
- Improved averages (MA) can help smoothing price fluctuations and identifying trend reversals.
Example: a trader identifies that the bitcoin market is in a downward trend. When the price exceeds the MA100 line (a mobile average of 100 periods), the trader buys BTC at $ 6,000. If the price then falls below the same line, the merchant sells BTC at $ 5,800.
- Stage trading strategies
Trading strategies in the range focus on identifying areas where prices have formed beaches or channels. These traders are looking for purchase and sale signals when prices leave these channels.
- The Bollinger band indicator (BB) can help identify the surachat / suintelat conditions.
- The parabolic SAR system (judgment and reverse) provides a simple way to negotiate with Momentum indicators.
- The Kaitai system of the Ichimoku cloud helps traders to identify the areas where prices have formed models.
Example: A trader identifies the Bitcoin market forming a range of $ 6,200 at $ 7,000. When the price leaves this channel, the trader buys BTC at $ 6,500. If the price then falls below the lower strip, the merchant sells BTC at $ 5,800.
- En trading strategies
En trading strategies focus on identifying the price variation in cryptocurrencies. These traders are looking for purchase and sale signals when prices accelerate or die quickly.
- The RSI (relative resistance index) can help identify the conditions of overeffrein / occurrence.
- The stochastic oscillator provides a means of assessing the momentum levels.
- The mobile average cross strategy is to define cross points between the MA100 and MA50 lines.
Example: a trader identifies that the Ethereum market shows a large momentum. When the price accelerates above the MA100 line, the trader buys ETH at $ 2,500. If the price then decrees below the same line, the trader sells ETH at $ 2,400.
- Support and resistance negotiation strategies
Support and resistance negotiation strategies focus on identifying areas where prices tend to bounce back or lower after having burst out a channel or a range of trends.
- The support and resistance levels can be identified using the Kaitai system of the Ichimoku Cloud.
- Fibonacci trace levels can help identify potential support and resistance points.
- The mobile average cross strategy is to define cross points between the MA100 and MA50 lines.
