Strategies for cryptocurrency Price Action: A guideline for trading with Ethereum Classic (etc)
The world of cryptocurrency trade has become increasingly popular in recent years, and many investors are trying to benefit from the rapidly growing market. An essential aspect of successful trade is understanding how the price campaign in cryptocurrencies such as Ethereum Classic (etc.) is read and analyzed. In this article we will examine various price action strategies for trade etc. and provide dealers with a comprehensive guide for starting.
What is price campaign?
Price action refers to the visual representation of market data, including price movements, trends and patterns. It offers dealers a unique perspective on the cryptocurrency market and enables them to determine potential purchase or sales opportunities. By analyzing price campaigns, retailers can get an insight into the market mood, measure trend reversions and make more informed trading decisions.
Price action strategies for etc. Handel
- Trend follows : This strategy includes the determination of a strong trend in the price of etc. and follows it. Dealers are looking for signs that indicate that a bullish or bear -trend is likely to be continued, such as:
* Rising heights
* Falling lows
* Increase in volatility
- Breakout pattern : Breakout pattern contain the price of etc, which breaks out over or under a significant level of resistance or support. Dealers are looking for patterns that indicate a potential breakout, such as: B.:
* An increasing price gap between two consecutive tips or deeper
* A closer trade area with increasing volatility
- Middle reversal : This strategy includes determining a market trend and betting on its reversal. Dealers are looking for signs that the market is due for a correction, such as: B.:
* A significant drop in price compared to the previous high or low
* A reduction in the price impulse (e.g. increasing MacD line)
- Ichimoku Cloud : The Ichimoku -Cloud is a technical analysis tool that offers dealers insights into market trends and patterns. Dealers use it to identify potential purchase or sales options by using:
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* The Tenkan-Sen line, which represents the short-term moving average
- Volume-based strategies : Volume-based strategies include the analysis of the commercial volume in order to identify potential purchase or sales options. Dealers are looking for:
* Increased trade activity near support or resistance levels
* Reduce commercial activity near trend reversations
Volkspreis action indicator
- RSI (relative strength index) : The RSI measures the size of the price movements with a moving average of 14 proiods with a sliding average of 100 percent. A value of over 70 indicates overbought conditions, while a value of less than 30 oversized conditions indicates.
- MACD (Moving Average Convergenz Divergence)
: The MACD is used to identify trend reversations by comparing the difference between two movable average values (12 periods and 26 periods). If the MACD line exceeds or below the signal line, it can indicate a potential trend reversal.
- Bollinger ligaments
: Bollinger ligaments represent the volatility using three standard deviations by a sliding 20-period average. Dealers use them to identify potential purchase or sales options by using:
* Increased volatility near support or resistance levels
* Reducing volatility near trend reversations
Tips and tricks
- Practice with a demo account : Praxe your price campaign strategies on a demo account with real money.
- Stay up to date : Stay up to date with market news, events and economic indicators that can affect the cryptocurrency market.
- Be patient : Price action trade includes patience and discipline.