Cryptocurrency pricing strategies: A guide for ethreum classic trading (etc)
The world of cryptocurrency trading has become more and more popular in recent years, many investors seeking to capitalize on the growing market. A key aspect of successful trading is understanding how to read and analyze the action of prices in cryptocurrencies such as Ethereum Classic (etc). In this article, we will explore various pricing strategies for trading, etc., offering traders a comprehensive guide to start.
What is the action of prices?
The action of prices refers to the visual representation of market data, including price movements, trends and models. It offers traders a unique perspective on the cryptocurrency market, allowing it to identify potential purchase or sale opportunities. Analyzing the action of prices, traders can get information about market feelings, reversing measurement trends and can make more informed trading decisions.
Price action strategies for trading etc
- The following tendency : This strategy involves identifying a strong price tendency, etc. and its pursuit. Traders are looking for signs suggesting that it is likely to be a bullish or ugly trend to continue, such as:
* Maximum Rising
* The fall of values
* Increased volatility
- Models of sale : interruption models involve the price, etc. Traders are looking for models that suggest potential separation such as:
* A growing price gap between two consecutive peaks or troughs
* A range of trading restricted with increasing volatility
- Average inversion : This strategy involves identifying a market and betting tendency on its reversal. Traders are looking for signs that the market is due to a correction such as:
* A significant decrease in price in relation to the precedent high or small
* A decrease in price impulse (eg MACD line increase)
- Ichimoku Cloud : The Ichimoku Cloud is a technical analysis tool that provides traders information about market trends and models. Traders use it to identify potential purchase or sale opportunities, seeking:
* The upper and lower lines of the cloud, representing the EMA on the move in 9 periods and 26 periods
* Tenkan-Sen line that represents the media in the short-term moving
- Volume -based strategies : Volume -based strategies involve the analysis of the trading volume to identify the potential purchase or sale opportunities. Traders are looking for:
* Increased trading activity near the level of support or resistance
* Decreased trading activity near the reversal of trends
Popular price -action indicators
- RSI (Relative resistance index) : RSI measures the size of price movements using an average of 14 periods and compares it with an average of 100 periods. A value over 70 suggests over -purchase conditions, while a value below 30 indicates exceeding conditions.
- MACD (average movement divergence) : MACD is used to identify the reversal of trends by comparing the difference between two mobile environments (12 periods and 26 periods). When the MACD line is crossed above or below the signal line, it may indicate a potential reversal of the trend.
- Bollinger bands : Bolninger bands represent volatility using three standard deviations around a motion -moving medium of 20 periods. Traders use them to identify potential purchase or sale opportunities, seeking:
* Increased volatility near the level of support or resistance
* Decreased volatility near the reversal of trends
tips and tricks
- Practice with a demo
: Before live trading, practice -have pricing strategies on a demo account using real money.
- Remain informed : Be up -to -date with market news, events and economic indicators that can affect the cryptocurrency market.
- Be patient
: Trading with shares involves patience and discipline.