Cryptocurrency price actions for cryptocurrency
As the world of cryptocurrency continues to grow and evolve, so do the commercial strategies used by merchants. With the growing popularity of cryptocurrencies such as Bitcoin, Ethereum and others, the demand for trade actions of effective price actions has been shot. In this article, we will explore some popular strategies of trade actions that can help merchants make informed decisions in the volatile world of cryptocurrency markets.
Understand the price action
Before immersing yourself in strategies, it is essential to understand what the price action means in the context of cryptocurrency trade. The price action refers to the visual representation of market data in a graph, including price and minimum price movements, and other key indicators. Merchants who focus on the price action analysis seek patterns and trends that indicate potential opportunities for purchase or sale.
5 Cryptocurrency Price Actions Strategies
- Trend following strategies
The following trend is one of the most popular price shares trade strategies used in cryptocurrency markets. It implies identifying a trend by analyzing price movements over time, then applying a purchase or sale signal when the market breaks up/below that trend line.
- Fibonacci setback levels may be useful to identify potential support and resistance levels.
- The Ichimoku cloud, a technical indicator developed by Japanese merchants, provides valuable information about price action patterns.
- Mobile averages (MA) can help soften price fluctuations and identify trend reversions.
Example: An operator identifies that the Bitcoin market is in a bearish trend. When the price is broken above the MA100 line (a mobile average of 100 periods), the merchant buys BTC at $ 6,000. If the price falls below the same line, the merchant sells BTC to $ 5,800.
- Commercial rank strategies
Range trade strategies focus on the identification of areas where prices have formed ranges or channels. These rank merchants look for purchase and sale signs when prices explode from these channels.
- The Bollinger Bands indicator (BB) can help identify over -sales/overall conditions.
- The parabolic SAR system (Stop and Reverse) provides a simple way to trade with impulse indicators.
- The Kaitai system of Ichimoku Cloud helps merchants identify areas where prices have formed patterns.
Example: An operator identifies the bitcoin market that forms a range of $ 6,200- $ 7,000. When the price leaves this channel, the merchant buys BTC at $ 6,500. If the price falls below the lower band, the merchant sells BTC to $ 5,800.
- Impulse trade strategies
Impulse trade strategies focus on identifying the change rate in cryptocurrency prices. These operators look for purchase and sale signals when prices accelerate or slow down.
- The RSI (relative force index) can help identify over -sales/overall conditions.
- The stochastic oscillator provides a way of measuring impulse levels.
- The mobile average crossing strategy implies establishing crossing points between the MA100 and MA50 lines.
Example: A merchant identifies that the Ethereum market is showing a strong impulse. When the price accelerates above the MA100 line, the merchant buys ETH at $ 2,500. If the price slows down the same line, the merchant sells ETH at $ 2,400.
- SUPPORT AND RESISTANCE COMMERCE STRATEGIES
Support and resistance trade strategies focus on identifying areas where prices tend to bounce or retreat after leaving a channel or rank of trends.
- Support and resistance levels can be identified using the Kaitai system of the Ichimoku cloud.
- Fibonacci recoil levels can help identify possible support and resistance points.
- The mobile average crossing strategy implies establishing crossing points between the MA100 and MA50 lines.