CRIPTO Currency: Management of Successful Trade Technical Indicators
The crypto currency world has experienced significant growth in the last decade, and many investors and traders have followed this fast developing market. However, as the market is getting more complicated, it becomes harder to move without a strict understanding of the technical indicators and the trading strategy.
In this article, we will come into the world of cryptocurrency trade and explore how to develop a successful strategy using technical indicators. By learning these key elements, you will be correct by making conscious trade decisions and increasing success in this unstable market.
Understanding technical indicators
Technical indicators are mathematical calculations used to analyze price movement and future prices. These indicators can help traders identify trends, patterns and abnormalities, which may not only be seen with basic analysis.
When it comes to cryptocurrencies, technical indicators play a key role in recognizing potential trade opportunities. By combining a number of indicators, you can create a comprehensive trading strategy that balances the risk and reward.
Key Technical Indicators of Cryptocurrency Trade
Here are some of the most popular technical indicators used in cryptocurrency trade:
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Relative strength index (RSI) : Measure the price price to determine the flooded or overturned conditions.
- Variable Average : Contains a number of variable average, such as 50 days and 200 days EMA, which helps recognize trends and predicts future prices.
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Bollinger Strip : Indicent indicator comparing prices that end with a variable average, helping retailers to discover trends and anticipate price movement.
- Story Telling Oscilator
: Compare the price with a number of historical accents and fall, giving an insight into beating or overturned circumstances.
- MacD (variable average convergence difference) : The pulse indicator, compared to recent benefits with losses, helping retailers to identify trends.
Trade Strategy Development
After choosing the technical indicators you will use your trading strategy, it’s time to create a comprehensive plan. Here are some steps to take:
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Determine your market goals : Define what you are trying to achieve with your trading strategy. Do you want to buy low and sell high or choose to keep yourself in positions as long as possible?
- Set the trading parameters : Determine the level of risk you are ready to download, including maximum removal, stop level and other parameters.
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Select your indicators : Choose the technical indicators that best match your trading strategy and market conditions.
- Develop a risk management system : Make a risk management system such as position and suspension size and order.
It’s all together: a sample of trading strategy
Here is an example of how you can include technical indicators in the cryptocurrency trading strategy model:
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Objectives in the market
: Buy low (buy Bitcoin in the lower market) and sell high (selling Bitcoin when it reaches $ 20,000).
- Indicators : Use RSI and Bollinger Lanes to identify potential purchases and sales options.
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Risk Management System :
* Maximum removal: 10%
* Stop Stop: $ 18,000
- Position size : Set 1 btc size per store.
- Trade trigger : RSI 14 periods above 70, and bollinger bands close to the price.
Conclusion
Developing a trading strategy based on technical indicators requires careful analysis and attention to details. By learning the key elements listed in this article, you will find the right way to create a successful cryptocurrency trading strategy.