Cryptocurrency Price Action Strategies: A Guide to Trade Ethereum Classic (etc.)
The World of Cryptocurrency Trade has become increased popular in recent years, and many investors seek to capitalize on the rapid growth market. A key aspect of successful trade is to understand how to read and analyze the price action in cryptocurrencies such as ethereum classic (etc.). In this article, we will explore severe price action strategies for trade, etc., providing merchants with a comprehensive guide to begin.
What is the price action?
The price action referers to the visual representation of market, including price movements, trends and patterns. It provides merchants with a unique perspective on the cryptocurrency market, which allows them to identify possible purchase or sale opportunities. When analyzing the price action, operators can obtain information about the feeling of the market, measure trends reversals and make more informed commercial decisions.
Price Action Strategies for Trade etc
- Next tendency : This strategy implies identifying a strong trend in the price of etc and following it. Merchants seek signals that sugest that a bullish or bassist tendency is likely to continue, such as:
* Ascent alcanza
* Lows caaentado
* Increased volatility
- Breaking patterns : Breaking patterns imply the price of etc that breaks above or below a level of resistance or significant support level. Merchants seek patterns that suugest a potential breakup, such as:
* An Increasing Price Gap between Two Consecutive Peaks or Channels
* A narrow Negotiation Range with Increasing Volatility
- AVERAGE REVERSION : This strategy implies identifying a market trend and betting on its reveral. Operators are looking for signs that the market is due to correction, such as:
* A significant drop in the price in relationship to the high or low
* A decrease at the time of price (for example, the MACD Rising Line)
- Cloud Ichimoku : Ichimoku’s cloud is a technical analysis tool that provides merchants information about trends and market patterns. Merchants use it to identify potential opportunities for purchase or sale seeking:
* The upper and lower lines of the cloud, which represent the mobile average of 9 periods and the ema of 26 periods
* The Tenkan-Sen Line, which represents the short-term mobile average
- Volume -based strategies
: Volume -based strategies imply analyzing commercial volume to identify possible purchase or sale opportunities. Merchants Seek:
* Increased Commercial Activity Near Support or Resistance Levels
* Decreased Commercial Activity Near Trends Investments
Popular Price Action Indicators
- RSI (Relative Resistance Index) : The RSI measures the magnitude of price movements using a mobile average of 14 periods and compares it with a mobile average of 100 periods. A value greater than 70 suggests overcreampra conditions, while a value of less than 30 indicates overall conditions.
- MACD (Mobile Average Convergence Divergence) : The MACD is used to identify Trend reversions comparing the difference between two mobile average (12 poriod and 26 perds). When the macd line crosses above or below the signal line, it can indicate a reveral of potential tendency.
- Bollinger Bands
: Bollinger Bands Representing Volatility using Three Standard Deviations AROUND A MOBILE AVERAGE OF 20 PERIODS. Operators use them to identify Potential Purchase or Sale Opportunities Looking:
* Increased Volatility Near Support or Resistance Levels
* Decreased volatility near trend investments
tips and tricks
- Practice with a Demonstration Account : Before Merchant Live, Practice Your Price Action Strategies in a Demonstration Account Using Real Money.
- Stay Informed : Keep updated with Market News, Economic Events and Indicators that can affect the Cryptocurrency Market.
- be a patient : the price of the price action implies patience and discipline.