Price Use Trading Strategies for Cryptocurrencies
The cryptocurrency markets have passed wildly between bulls and bears. While some investors see the cryptography market In this article, we example three key pricing strategies for cryptocurrencies.
Strategy 1: Follow the Trend
The Next Trend is one of the most popular and effective commercial strategies in the cryptocurrencies market. This approach includes the direction of market momentum and proper positioning of positions.
* Identification of Trends : Look for long -term trends defined by a combination of technical indicators such as moving levels, RSI and Bollinger Bands.
* Setup stop losses
: after you have identified a trend, set the stop losses at a level the profit target is the key. In this way, if the price reviews the direction, it protects it from further losses.
* Setting positions : after reversing the trend, set positions to record profits or to lie losses.
Example:
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Strategy 2: Average Reversal
Over -purchased or excessive conditions in the cryptocurrency market.
* Identify over -purchased/overloaded conditions : Find Extreme Price movements and identify areas where the price is high or low at all times.
* Set down stop losses : after identified an over -purchased/excessive condition, set the stop losses at a level that slightly exceeds the current price. In this way, if prices bounce back, it will protect from further losses.
Example: Ethereum (ETH) has experenced significant volatility in recent months, prices have risen after a downturn. Merchants change their position by closing profits or losses as the market continues to point up.
Strategy 3: Breakout Trading
Breakout Trading is another popular strategy that includes areas where prices break out of the proven ranges.
* Identify Eruptions : Find Price Movements
* SETS STOP LOSSES : After identifying the outbreak, set the stop losses slightly above/below the breakout point. In this way, if prices turn the direction, they will protect them from further losses.
Example: The latest Bitcoin (BTC) Demolition was made by increasing levels of support and increasing trading volume. Merchants change their position by closing profits or losses as the market continues to point up.
More Tips
* Use a technical indicators : use a combination of technical indicators such as moving levels, RSI, Bollinger Bands and MACD to identify trends, reviewals and erUptions.
* Focus on trends :
* Handling the risk :
Conclusion
Equipment Market Analysis. By identifying trends, determining stop losses and setting positions, Merchants can close profits or confidence in losses. Don’t forget to use technical indicators, focus on trends, and manage the risk to ensure the success of cryptocurrencies.
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