cryptocurrency: mastering the art of commercial technical indicators
The world of cryptocurrencies has grown significantly in the last decade since many investors and traders are flocking in this market in rapid development. However, since the market is becoming increasingly difficult, it is increasingly difficult to navigate without a strong understanding of the technical indicators and trading strategies.
In this article, we will go to the world of cryptocurrency trading and investigate how to create a successful strategy using technical indicators. By mastering these key elements, you will be well done with reasonable commercial decisions and increase your success opportunities in this volatile market.
Understanding of technical indicators
Technical indicators are mathematical calculations used to analyze price variations and anticipate the phases of future prices. These indicators can help traders determine trends, models and anomalies that can be evident in the main analysis.
When it comes to cryptocurrency, the technical indicators play a crucial role in identifying possible trading skills. By combining multiple indicators, it is possible to create a complete trading strategy that balances the risk and reward.
Key cryptocurrency trading
Here are some of the most popular technical indicators used in cryptocurrency:
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- Stocastic oscillator : compare the price to the many historical heights and the lowest, giving information on the overcrowded or resale conditions.
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Creation of your commercial strategy
By choosing the technical indicators you will use in your commercial strategy, it is time to create a detailed plan. Here are some steps to follow:
- Specifies your market goals : Define what you are trying to get using your commercial strategy. Do you want to buy little and sell high or do you keep positions as long as possible?
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- Select your indicators : Choose the most suitable technical indicators for trading strategy and market conditions.
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To put everything together: commercial strategy
Here is an example of how it is possible to include technical indicators in the example of a cryptocurrency trading strategy:
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- Indicators : Use RSI and Bollinger stripes to determine the purchase and sale potential.
- Risk management system :
* Maximum stop: 10%
* Stop level: $ 18,000
- Position size
: Set 1 btc position size for trade.
- Commercial trigger : 14 periods of RSI out of 70 and Bollinger bands are closed below the price.
Conclusion
Analyze carefully and pay attention to details to develop a commercial strategy based on technical indicators. By mastering the basic elements described in this article, you will be well to create a successful cryptocurrency trading strategy.
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